The financial impact of tourism far outweighs the ability of the town residents to meet the demand for services expected by tourists solely on the revenue generated by property tax. Therefore, the residents of the town of West Yellowstone voted to institute a resort tax in 1986. Once passing the Montana Legislature, the town undertook substantial infrastructural improvements and expansion of services that would benefit both visitors and residents. Since a bulk of services provided by the town are consumed by the tourists, it is the intent of the town to collect resort taxes on "luxury" items (see Section 3.12.040 for definition) purchased and tourist-related entertainments provided by businesses which operate within the town.
A. 
A resort tax is imposed on the retail value of all goods and services sold or provided by businesses, groups or organizations located within the town, regardless of the method or manner of the transaction, by the following:
1. 
Hotels, motels, condominiums, vacation rentals, cabins and any other nightly or weekly lodging or camping facilities;
2. 
Restaurants, fast food stores, convenience stores, and other food service establishments;
3. 
Taverns, bars, nightclubs, lounges and other public establishments that serve beer, wine, liquor or other alcoholic beverages by the drink;
4. 
Groups, organizations, or temporary vendors, with or without tax exempt status;
5. 
Any business that sells luxuries as defined in Section 3.12.040.
Businesses or organizations that sell luxuries must collect a tax on such luxuries.
(Ord. 112 § 1, 1985; Ord. 211 § 1, 2003; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
A. 
The terms "luxuries," "medical supplies," and "medicine"
shall be defined as set forth in MCA Section 7-6-1501, and as set forth in more detail below.
B. 
All references to the "resort tax" and "tax" in this chapter shall refer to the resort tax passed by the electorate of West Yellowstone and as enacted by the ordinance codified in this chapter.
(Ord. 112 § 2, 1985; Ord. 113 § 1, 1985; Ord. 211 § 2, 2003; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
There is imposed a duty on each operator of any of the establishments mentioned in this chapter to collect, upon sale, the tax imposed as set forth in this chapter on all customers, regardless of state or federal tax status, with the only exceptions being those set out in Section 3.12.130.
(Ord. 113 § 2, 1985; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Each business, group or organization subject to the tax shall collect the same on the retail value of all goods and services sold within the town by the establishments set forth in Section 3.12.010. All luxuries shall be taxed.
"Luxuries"
shall include but not be limited to:
A. 
Any gift item, luxury item or service, or other item, or other item normally sold to the public or to transient visitors or tourists; but the term does not include unprepared food, medicine, medical supplies and services, or any necessities of life.
B. 
Sporting goods or the rental thereof.
C. 
Rentals on or for the following recreational equipment: including but not limited to snowmobiles, automobiles, all-terrain vehicles, motorcycles, bicycles, skis, ice skates, snowshoes, boats, campers, and boat motors.
D. 
Recreational lessons and recreational services, including but not limited to float trips, guided trips, skiing, fishing trips, hunting trips, backcountry dining trips, other outfitter trips; horseback riding; golfing, snowshoeing, rock climbing, cycling, rafting, canoeing, kayaking, dog sledding and ballooning, tours and other attractions.
E. 
All souvenir and localized items such as imprinted hats and T-shirts and curios; all nonfood items such as housewares (other than household appliances), automotive supplies and parts; ice; retail liquor, beer and wine, except that sold at state stores.
F. 
All attractions such as arcades, bowling centers, concerts, movie/theater tickets and all concessions; event and entertainment tickets (regardless of the method or location of purchase), cover charges, rodeo tickets, voluntary recreational activities such as golfing, swimming, skiing, tanning beds, and other voluntary recreational daily tickets and season passes.
G. 
Any other goods or services not exempt by Section 3.12.130.
(Ord. 113 § 12, 1985; Ord. 211 § 3, 2003; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
A. 
The exact rate of the original resort tax is three percent.
B. 
The exact rate of the additional resort tax rate is one percent.
C. 
The original resort tax was approved by the voters on November 5, 1985, and was renewed on January 1, 2006, which was set to expire on December 31, 2025. On November 5, 2019, the voters approved another twenty-year extension which shall begin on January 1, 2026, and end on December 31, 2045.
D. 
The duration of the additional one percent resort tax is twenty-five years, and the effective date of the additional one percent resort tax is January 1, 2020, and will expire once debts and project costs are paid, but no later than December 31, 2045.
(Ord. 112 §§ 3, 4, 5, 1985; Ord. 211 § 4, 2003; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017; Ord. 272 § 1, 2022)
The resort taxes collected by a business in any month are to be paid to the town on or before the twentieth day of the following month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day. Resort tax payments sent by mail or private courier must be received by the town on or before the twentieth day of each month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day.
(Ord. 113 § 3, 1985; Ord. 219 § 1, 2006; Ord. 224 § 1, 2007; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
A. 
The office responsible for receiving and accounting for the resort tax receipts is the finance department.
B. 
The town manager and his/her agents shall be responsible for enforcing the collection of resort taxes and shall be responsible for overseeing the methods and procedures to be used in enforcing the collection of the resort taxes.
(Ord. 113 §§ 4, 5, 1985; Ord. 172 § 1, 1995; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Each collecting merchant shall be entitled to withhold two and one-half percent of the resort taxes collected to defray costs for collecting the resort tax, providing that resort tax payments are made timely in accordance with Section 3.12.060. The resort tax collection fee may be withheld by the business at the time of paying the tax to the town. Failure to withhold the fee shall constitute waiver and forfeiture of the same.
(Ord. 113 § 7, 1985; Ord. 219 § 2, 2006; Ord. 222 § 1, 2007; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
The town shall provide each business that is required to collect resort tax with the proper forms for reporting and making payments. Resort tax payments to the town shall be tabulated and accounted for on forms prescribed and furnished to the business by the town. The records and forms held by the town shall be confidential, and shall not be open to inspection by the public unless so ordered by a court of competent jurisdiction. Each business that is required to collect resort tax must maintain adequate accounting records and pay the resort tax to the town on the forms provided by the twentieth day of the following month. The accounting records maintained must be accurate, verifiable, and provide a reasonable audit trail. Failure to maintain adequate accounting records constitutes a violation of this chapter.
(Ord. 113 § 8, 1985; Ord. 119 § 1, 1986; Ord. 201 § 1, 1999; Ord. 219 § 3, 2006; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Every business required to collect and pay resort tax shall keep and preserve for a period of not less than three years all records necessary to determine the accuracy of the taxes paid, and shall make these records available for audit or inspection on its business premises at all reasonable times. Any audit or inspection shall be conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax or at such other location as the town may determine.
(Ord. 113 § 10, 1985; Ord. 201 § 2, 1999; Ord. 219 § 4, 2006; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Periodic random audits shall be conducted under the direction of the mayor, town manager or a designated representative and all business operators shall cooperate in all respects in the conduct of the audits. Any random audit shall be for the previous calendar year, and shall be conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax or at such other location as the town may determine. If the audit determines a deficiency, it will be at the discretion of the town to audit the previous two years and require a follow up audit on the next reporting year. Payments and/or arrangements for payment of the amount determined as outstanding resort tax owed shall be paid or arranged within thirty days of the date of the notification of the audit results. Failure to cooperate in any audit or inspection of records, including the failure to make the appropriate records available within fourteen calendar days of the auditor’s scheduled audits in West Yellowstone, may result in an automatic nonrenewal of the business license for the subsequent business license year and shall constitute a violation of the provisions of this chapter.
(Ord. 113 § 9, 1985; Ord. 201 § 3, 1999; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Any organization may appeal to the town council any assessment of penalty or interest; provided, that notice of appeal in writing is filed with the town clerk within thirty days of the serving or mailing of the determination of the amount of penalty and interest due. The town council shall on the next immediate regular town council meeting fix the time and place for hearing the appeal and the town clerk shall cause notice in writing to be personally served by a peace officer upon the operator. The findings and decision of the town council shall be final and conclusive and shall be served upon the appellant in the manner prescribed for service of notice of hearing or by certified mail directed to the business operator’s last known address. Any amount found to be due shall be immediately payable upon service of the findings and decision.
(Ord. 113 § 11, 1985; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
Notwithstanding Section 3.12.040, however, the following goods and services shall be exempt from the tax:
A. 
Utilities and utility services;
B. 
Medical supply services and medicine;
C. 
Wholesale merchandise for resale at retail or used in the purchaser’s business as supplies;
D. 
Gasoline and other motor vehicle fuel;
E. 
Liquor sold at state liquor stores;
F. 
Propane and similar home fuels;
G. 
Sales of automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, skis, boats, outboard motors and chain saws;
H. 
Labor on automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, boats, outboard motors and chain saws;
I. 
All nonrecreational labor, services and nonrecreational state licensed professions and trades;
J. 
All payroll and business and labor costs;
K. 
Lumber, building supplies and tools, and other tools;
L. 
Household appliances;
M. 
Any hotel, motel, campground or other lodging facility occupancy, with respect to any person or persons who occupy a room or a space for a period longer than thirty consecutive calendar days; provided, that such person certifies prior to occupancy that the occupancy will exceed thirty consecutive calendar days and does in fact exceed thirty consecutive calendar days;
N. 
All sales of goods from businesses via the Internet, catalog or telephone that are shipped out of town and the purchaser never enters the boundaries of the town shall be exempt. Any goods, services or luxuries that are sold by any means and that will either be obtained, consumed, or enjoyed within the town are not exempt. Further, the services described in Section 3.12.040 and sold by a business located within the town but consumed or enjoyed outside the boundaries of the town are not exempt, regardless of the method of payment;
O. 
Events may be provided, by administrative order of the town manager or his/her designee, relief from the collection of resort tax if three of the following criteria are met:
1. 
The activity is for a local school or church fundraiser.
2. 
The appealing entity can establish that all net profits are donated to the local community or school, in kind or monetarily.
3. 
Monies collected are a donation.
4. 
Fees are stipulated by a sanctioning body.
5. 
The entity hosting the event is not required to have a business or expo license.
6. 
If the event’s resort tax collections are anticipated to be less than fifty dollars.
7. 
The entity conducting the event must have a physical address within the 59758 zip code;
P. 
The town provides an appeal process, through town council, where an entity may appeal the decision of the town manager.
(Ord. 113 § 13, 1985; Ord. 117 §§ 2, 3, 1986; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
A. 
The tax moneys derived from the resort tax may be appropriated by the town council for any activity, undertaking, or administrative service that the municipality is authorized by law to perform, including costs resulting from the imposition of the tax.
B. 
There is established a marketing and promotion (MAP) fund for the town. Two and one-half percent of the three percent resort tax collected by the collecting merchant shall be dedicated exclusively to the MAP fund, which fund shall be used solely for the marketing and promotion of West Yellowstone and the surrounding area, as well as the associated costs of administering the fund. The town council may appropriate additional resort tax receipts to the MAP fund.
C. 
The town council shall by resolution establish a board of not less than three or more than seven qualified persons to oversee the MAP fund. At least one member of this board shall be a sitting member of the town council or the council’s designee. The board shall establish policies and procedures for its operation and the general management of the fund in accordance with the council’s resolution establishing the board. The board shall also select individual marketing and promotion projects and approve expenditure of funds for such projects, subject to approval by the town council.
D. 
The tax moneys derived from the additional one percent resort tax shall only be used for infrastructure projects, including upgrades and replacements of the following: wastewater treatment facilities, water lines, sewer lines, streets, sidewalks, and water storage tanks.
E. 
All or a portion of the tax moneys derived from any resort tax of the town or any other source of revenue authorized by the legislature to be imposed or collected by the town, including, without limitation, special assessments, may be (1) pledged by the town council to the repayment of or as security for the repayment of bonds or other obligations of the town that finance or refinance costs of eligible projects and pay costs associated with the sale, security, or issuance of the bonds or other obligations, and/or (2) appropriated to an undertaking and constitute revenue of the undertaking in a manner that does not result in an undertaking being considered not self-supporting and be pledged to the repayment of bonds or other obligations of the town as part of the undertaking. The terms, conditions, and effect of the pledge and/or the appropriation and pledge shall be as set forth in a resolution or resolutions of the town council authorizing the bonds or other obligations. The pledge and/or the appropriation and pledge shall be binding on and enforceable against the town in accordance with the terms of the pledge and/or appropriation and pledge as set forth in the resolution or resolutions of the town council.
(Ord. 112 § 6, 1985; Ord. 222 § 2, 2007; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017; Ord. 272 § 1, 2022)
Annually anticipated receipts from the original three percent resort tax must be applied to reduce the municipal property tax levy for the fiscal year in an amount equal to five percent of revenues derived from the original three percent resort tax during the preceding fiscal year.
(Ord. 112 § 7, 1985; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017; Ord. 272 § 1, 2022)
In the event that the town receives more resort tax revenues derived from the original three percent resort tax than had been anticipated in the annual municipal budget, it shall establish a municipal property tax relief fund. All resort tax revenues derived from the original three percent resort tax – not to include those derived from the additional one percent resort tax – that are received in excess of those anticipated in the annual municipal budget must be placed in the fund. The entire municipal property tax relief fund so established must be used to further reduce municipal property taxes levied in the ensuing fiscal year.
(Ord. 112 § 8, 1985; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017; Ord. 272 § 1, 2022)
The town shall administer resort tax collections according to the following rules:
A. 
Resort tax payments shall be made to the town finance office by the established deadline.
B. 
Failure to report or make resort tax payments by the payment deadline shall result in forfeiture of the resort tax collection fee for the month in which the payment is due.
C. 
Failure to pay resort tax before the end of the month in which the payment is due shall result in an administrative fee of either: (1) twenty-five dollars for businesses with gross sales of one thousand five hundred dollars or less for the reported month; or (2) fifty dollars for businesses with gross sales in excess of one thousand five hundred dollars for the reported month, which shall be in addition to any civil penalties awarded to the town in a suit for collection of resort tax.
D. 
At the end of each subsequent month after the original payment is due, the town will assess interest at the rate of three percent of any delinquent resort tax, which shall be assessed on the first business day of the subsequent month and on the first day of each month thereafter until the total amount due, including the administrative fee, is paid in full. This and all administrative fees shall be assessed in addition to any civil penalties awarded to the town in a suit for collection of resort tax.
E. 
The town may revoke the business license of any person or business that violates any provision of this chapter. The town may revoke a violator’s business license either through the administrative procedure described in Chapter 5.04 or through a court order or judgment in accordance with Section 3.12.180.
(Ord. 112 § 9, 1985; Ord. 211 § 5, 2003; Ord. 219 § 5, 2006; Ord. 250 § 1, 2010; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
For failure to report taxes when due, failure to pay taxes when due, and other violations of this chapter, the town may seek the following penalties or remedies:
A. 
A court judgement in the amount of all unpaid resort taxes, including any unpaid administrative fees assessed under Section 3.12.170 and any resort tax collection fees forfeited in accordance with Section 3.12.080;
B. 
Interest at the rate of ten percent per annum on unpaid resort taxes or administrative fees from the due date or assessment date until paid;
C. 
A civil penalty in the amount of fifty percent of the unpaid resort taxes, which includes forfeited resort tax collection fees, plus all costs and attorney’s fees incurred by the town in any court action;
D. 
An order requiring the delinquent business to undergo a financial audit by the town or its representatives to determine the proper amount of resort taxes due, including payment by the business of all audit costs and expenses incurred by the town or its representatives;
E. 
Revocation of the violator’s town business license, either through judicial order or the administrative procedure described in Chapter 5.04;
F. 
Any other penalty, remedy or judicial relief to which the town is entitled.
(Ord. 113 § 6, 1985; Ord. 207 § 3, 2000; Ord. 219 § 6, 2006; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)
A person or business violating any provision of this chapter is guilty of a misdemeanor and subject to a fine not to exceed one thousand dollars for each violation, or imprisonment not to exceed six months for each violation, or both.
(Ord. 219 § 7, 2006; Ord. 258 § 1 (Exh. A) (part), 2015; Ord. 264 § 1 (Exh. A) (part), 2017)