Resort Tax

The City of Red Lodge has a 3% Resort Tax (Ordinance and City Code) that is collected from Lodging, Retail, Bars and Restaurants.

The resort tax is authorized by Section 7-6-1505 MCA and was originally approved by Red Lodge voters on November 4, 1997.   The resort tax was approved for a 25 year term beginning January 1, 1998.

Red Lodge’s resort tax is a 3% tax on the retail sale of lodging, restaurant and prepared food, alcoholic beverages, ski resort goods and services, rentals, retail goods, sporting goods, nonfood items and some food items, and recreational services.

Red Lodge voters allocated the use of the resort tax as follows:

A. Property tax reduction for taxpayers of the City in an amount equal to fifteen percent (15%) of the Resort Tax revenues derived during the preceding fiscal year;

B. The merchants’ and vendors’ cost of collecting the Resort Tax in an amount equal to five percent (5%) per year (as provided in Section 2-4-6 of this Ordinance;

C. Cost of administering the Resort Tax in an amount equal to one percent (1%) per year (as provided in subsection 2-4-6(C) of this chapter);

D. All remaining tax revenue collected must be utilized for capital improvements to streets, alleys, roads, the municipal water system, the municipal sewer system, parks and recreational facilities, or emergency services.

In the event the City receives more Resort Tax revenues than had been included in the annual municipal budget, it shall establish a municipal property tax relief fund, and all Resort Tax revenues received in excess of the budget amount must be placed in the fund. The entire fund must be used to replace municipal property taxes in the ensuing fiscal year.

The Resort Tax Committee is made up of 5 registered voters with representatives from Red Lodge, non-retail businesses, retail businesses, residents and City government. The committee reviews the Resort Tax administrative ordinance for the purpose of reviewing the list of included and exempted goods and services as defined in the administrative ordinance, and to propose any amendments to the then existing list.

Additional Resort Tax Information