Montana Promotion Division
MONTANA'S TOURISM FUNDING
Montana's successful tourism industry relies on the "bed tax." This 4% tax on overnight lodging supports Montana's promotion efforts and also contributes funds to state parks, historic sites, and other important programs. In the year 2006, the bed tax will collect about $15.1 million, yet it will help generate more than $2.7 billion in nonresident spending.
In 1987, Montana's legislature recognized the vast importance of tourism to Montana's future economy. During that session, the legislature created a 4% Lodging Facility Use Tax, commonly referred to today as the bed tax. Lodging facilities (such as hotels, motels, bed & breakfast inns, guest ranches, resorts and campgrounds) collect this tax from guests. In turn, these funds are directed to the Montana Historical Society, the University System, the Department of Fish, Wildlife & Parks, Montana's tourism regions and CVBs, and the Department of Commerce for travel and film location promotion. Importantly, no additional money for tourism funding comes from Montana's general fund; the success of the bed tax is entirely dependent on the success of Montana's promotion efforts. Seventeen years after the legislature created the Bed Tax, its success is evident. Today, tourism is one of Montana's leading industries, and its fastest growing.
In 1988, the year the bed tax was first collected, $5 million was generated. In 2006, that figure will be more than $15.4 million, representing an increase of more than 200%.
Bed tax collections are Montana's source of funding for all of its tourism marketing efforts; however, the bed tax itself supports much more than marketing alone. In fact, about 15% of the bed tax currently supports tourism-related infrastructure around the state. This includes items such as historic preservation funds for Virginia City/Nevada City, maintenance of state parks, funding for the Lewis and Clark bicentennial program, and historic signage.
Please see the following tables for more details:
