By Daniel Bierschwale EBS COLUMNIST
The residents of Big Sky have lower property tax bills thanks to the forward thinking of some locals more than three decades ago. In 1992, residents voted in favor of implementing a resort tax, a decision that continues to have positive impact to this day.
People, mostly tourists, pay resort tax on their purchases. So, you might be wondering, how does that save residents money? To understand, we’ll take a look into how the two taxes work together.
The government services that are needed to run a community are typically funded in large part through property taxes. This includes essentials like the sheriff, fire department, water and sewer. These taxes, whether through mill levies or fixed fees and assessments, ensure that the costs of maintaining our quality of life are shared among property owners.
In our tourism-based community, additional services and infrastructure are needed to sustain the influx of visitors. Resort tax is collected on luxury goods and services typically used by tourists—such as hotel rooms, restaurants, recreational adventures and gear, and souvenirs—and is utilized to support funding for managing the impact of tourism on Big Sky. Unlike traditional property taxes, which can disproportionately burden residents in a location impacted by visitors, the resort tax distributes the financial responsibility more equitably.
In the fiscal year 2024 alone, the Big Sky Resort Area District allocated over $10.5 million from its budget to fund essential government services within district boundaries—an area encompassing approximately 6,950 property parcels. These services, which would have otherwise been funded through property taxes, translated into significant savings for residents, averaging over $1,500 per parcel. While the exact figures vary depending on property values, the impact remains substantial. This is testament to the tangible benefits of the property tax offset enabled by Big Sky’s resort tax.
Many people underestimate the sheer magnitude of the savings generated through resort tax revenue. Since its inception, the resort tax has collected over $140 million. A large part of those public dollars have been targeted on funding government services. As our community is faced with financing over $750 million in critical infrastructure needs outlined in the Big Sky Capital Improvement Plan, it becomes increasingly apparent that diversifying funding options is essential. Strategically allocating resort tax revenue towards these projects will help to alleviate the burden on property owners.
In an area where home prices are steep, property tax relief is even more important. Without such relief, the already formidable challenges of purchasing and maintaining a home here would become even more daunting.
‘But I don’t own property’
This tax relief extends its impact beyond property owners, benefiting renters and consumers as well. Lower property tax burdens can translate into reduced overhead costs for both landlords and local businesses. Without the tax savings, they would need to make up those expenses by charging more for rent or for goods and services.
All community members benefit from the significant property tax relief that resort tax provides. So, the next time you grab dinner and a cocktail at a local establishment, toast to the 4% resort tax line item on your bill. This seemingly small contribution plays a significant role in generating savings for property owners, renters, and consumers alike—and our many visitors are paying that 4%, too.
Daniel Bierschwale is the Executive Director of the Big Sky Resort Area District (BSRAD). As a dedicated public servant, he is committed to increasing civic engagement and voter education. Many ballot issues impact government services and public funding including subsequent property tax impacts. BSRAD is the local government agency that administers Resort Tax, which offsets property taxes while also funding numerous community-wide nonprofit programs.
