Executive Order 10-02

State of Montana
Office of the Governor

Executive Order Creating the Governor's Local Option Tourist Tax Advisory Council

WHEREAS, there is a need to review Montana's individual income tax rates to remove the income tax impediments to economic development by addressing the perception that Montana has a very high income tax and the reality that Montana does have one of the high tax rates on capital gains income in the nation; and

WHEREAS, if the individual income tax is reduced, there must be replacement revenue and that replacement revenue is a proposed statewide tourist tax; and

WHEREAS, if there is a statewide tourist tax, it may be good policy to allow local voters to have an additional tax that is distributed locally.

NOW, THEREFORE, I, JUDY MARTZ, in accordance with the provisions of §  2‑15‑122, do hereby create the Governor's Local Option Tourist Tax Advisory Council.

PURPOSE

The purpose of the Governor's Local Option Tourist Tax Advisory Council is to recommend whether to allow local voters to add a local tourist tax on to the statewide tourist tax.  Whether or not recommended, the Council will recommend provisions necessary to administer such a tax, including the amount that could be added to a statewide tourist tax base by a local vote; the most fair and efficient manner to distribute a local option tourist tax; and the purposes for which it can be expended, which must include economic development and property tax relief.

The Governor's Local Option Tourist Tax Advisory Council will make recommendations and issue a final report to the Governor.   The Governor's Local Option Tourist Tax Advisory Council is not intended to be, and shall not operate as, a policymaking body.  All actions by the Council will be advisory in nature.

COMPOSITION

The Local Option Tourist Tax Advisory Council shall consist of no more than fourteen members who shall serve at the pleasure of the Governor.  The names and addresses of members are submitted by separate letter to the Secretary of State and the Department of Revenue.

DURATION

The Local Option Tourist Tax Advisory Council shall remain in existence until December 31, 2002, unless extended or terminated by a subsequent Order of the Governor.

This Order is effective immediately.