Idaho’s Resort Fee Sparks Montana Tax Questions

Teton County, Idaho is considering a 2% tax on short-term rentals. Why? Just across the state line in Alta, Wyoming, home to the Grand Targhee Resort, a major expansion is planned that is expected to generate millions of dollars in tax revenue. All that tourist cash goes into Wyoming, while the Idaho side is left to busy roads, crammed grocery aisles, and next to nothing from the lodging tax. Idaho wants a piece of the pie, and they’re saying: While you’re skiing, renting, or crashing on the Idaho side, maybe you should fork out more.

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The Montana Question

Which brings us to the fun question: could Montana do this as well? Just think of what we could do if we started taxing the out-of-state minions who swarm our highways every summer in their RVs with California plates and $1,200 hiking boots. They come for Glacier, Yellowstone, Flathead Lake, and every Airbnb that still has a coffee pot that works. We get the roads plowed, keep the sheriffs busy, make sure they pick up their trash, and yet a lot of that money leaves town with them.

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Don’t We Already Have Resort Taxes?

Yes, but here’s the kicker. Resort taxes are already on the books in places like Whitefish, Red Lodge, Big Sky, and West Yellowstone. Those do contribute to funding local services, but locals pay those too. Buy a burger, pick up a six-pack, reserve a hotel room. Montanans and vacationers alike get dinged. What Idaho is proposing is different. Their short-term rental fee would fall entirely on visitors and renters, not the people who actually live there year-round. That’s the part Montana might try and figure out. A system where rich out-of-staters picking up their ski passes or renting Airbnbs pay for the impact they’re causing, and locals don’t get stuck with the bill.

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Could It Work?

Legally, states already tax visitors. Consider hotel lodging taxes, resort fees, and even rental car surcharges. The wrinkle is singling out out-of-state visitors or basing a tax on where they’re staying. If Idaho can rely on Wyoming-based traffic at Targhee, Montana could make a case for doing the same. Out-of-state tourists use our services without contributing to our tax base, and it wouldn’t be unreasonable to tack on a fee that helps Montana communities manage the flood.

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Montana’s Move?

Would it be easy? No. Would it make locals smile? Absolutely. Every Montanan who’s been stuck behind a rental RV crawling up Lookout Pass would love to know that family just chipped in for road maintenance. Even pennies on the latte orders flooding Yellowstone hot spots add up. If Teton County, Idaho can do it, why not Montana?

Maybe the next bumper sticker shouldn’t just say “Don’t California My Montana.” It should read, “Thanks for stopping by. That’ll be 2%.”