Special Ordinance Draft
February 29th, 2024
Philipsburg Town Council Minutes
10:00 AM Townhall
Council in attendance: Carl Sundstrom, Jason White, Scott Lyons, Lorraine Dell-Bishop, John Laigaie, and Mayor Daniel Reddish. Council absent: Gary Fujinami. Others in attendance: Clerk Rachel Parret, Special Projects Maureen Connor, Andrea Hess, Amelia Wood (online), and Tamara Walden (online).
Call to Order: Councilman Lyons called meeting to order at 10:00 am.
Alternate Ballot Language: Attorney Blaine Bradshaw sent a revised ballot language to the Council.
Councilman Lyons read aloud the new ballot language to the Council and public.
Councilwoman Dell-Bishop asked if the Council has the authority to change the amount collected from the tax in the future. Mayor Reddish stated that the Council does not have the authority to change the amount. Any changes made would have to go back to a vote.
Maureen Connor suggested to change ballot language from the resort tax shall become effective 35-days to the resort tax shall become effective January 1st, 2025, per lawyer approval.
Councilman Lyons stated he would like to leave the 35 days but add or more after the 35 days. The Ordinance will cover the date that the resort tax will go into effect January 1st, 2025.
Ordinance Draft: Councilman Lyons read Ordinance Draft for the Resort Tax aloud to the Council and Public.
Councilwomen Dell-Bishop asked if the Ordinance would specify if essential services would be taxed or not. Councilman Lyons stated that the essential services such as hair cutting, maintenance, and mechanics would not be taxed.
Ordinance – Exemptions
Councilwoman Sundstrom asked why the Ordinance is listing two specific exemptions. Councilman Lyons stated that the exemptions are specific to Town. Mayor Reddish suggested that exemptions should be specific to certifiable nonprofits. Councilman Lyons asked if the Council would be taxing anything sold by nonfits. Councilman Sundstrom stated that beer and wine sales should be taxed for nonprofits. Maureen Connor suggested that proof should be submitted for nonprofit status and just focus on alcohol sales. Mayor Reddish suggested that the Ordinance should state that all nonprofits will be exempt except for the sale of alcohol. Councilman Sundstrom asked about the sale of alcohol at the Fireman’s Clam Feed. Mayor Reddish stated that the Fire Department is part of Local Government and would be exempt from tax.
Andrea Hess asked if the Town would be annexing Huffman’s Grocery into the Town limits. Councilman Lyons stated that the Council is not discussing annexing at during this meeting. Councilman Sundstrom stated that this is a potential to annex in the future.
Ordinance – Remittance
Councilman Sundstrom suggested adding monthly payments allowed in Section A(1).
Councilman Lyons suggested omitting Section A(2) from the Ordinance Draft.
Councilman Lyons stated that the Section A(3) quarters need to be corrected starting with Quarter 1 January – March.
Ordinance – Payment of Tax
Mayor Reddish suggested correcting B(2) Town business licenses to existing and future Town business licenses.
Councilman Lyons stated that the word random needs to be removed from B(2).
Maureen Connor wants to make sure that if are audits are being done that they will have just cause such as nonpayment of tax. The Town and business will need to agree upon the auditor.
Andrea Hess stated that the verbiage should protect the business during the audit.
Maureen Connor stated that an outside evaluator should be brought in for the audit. If the business fails, the audited business will pay for the fees and if the business passes the audit the Town will pay the fees. A notification letter should be sent to the business, then a meeting with the Town Council, and then the audit. This will give the business enough time to rectify the taxes.
Councilman Sundstrom stated that Red Lodge references failure to pay taxes and the Town could use their structure as a reference for the Town’s Ordinances.
Maureen Connor stated that the Town Council is the committee that will review and decide if an audit is necessary.
Andrea Hess stated that her business takes months to sell side-by-sides and motorcycles, and “I need to know what my business will look like if the Resort Tax passes.” Councilman Lyons stated that she needed to talk to her accountant and that every business will be different. Clerk Rachel Parret stated that Red Lodge’s Ordinance did not tax street legal vehicles. Councilman Lyons stated street legal vehicles will have a license plate and will not be taxed. Mayor Reddish stated that the Town is side-by-side friendly, and we consider if it is licensed the vehicle is street legal.
Councilman Sundstrom stated that he would like to just go through what is taxed and what is exempt.
Councilman Lyons stated that the Council should go through the entirety of the Ordinance first before the Council breaks down exempt and nonexempt items.
Public Comment
Andrea Hess asked if the Council working sessions could be in the evenings so more working people could attend the meeting. Councilman Lyons stated that working meetings are during the day, however, the Council will hold two public meetings in the evenings to discuss the Ordinance after the public vote.
Councilman Laigaie asked if members of the public can go door to door with FAQ sheets to inform the public. Clerk Rachel Parret stated that the information is available at the Townhall and on the Town website. Councilman Lyons stated that if the members of the public want to go to Townhall and pick up the FAQ’s, they are more than welcome to go hand them out.
Next Meeting:
March 15th, 2024, Working meeting on draft Ordinance.
Adjourn:
Councilman Sundstrom made a motion to adjourn, Councilwoman Dell-Bishop seconded the motion, and the motion passed at 11:33 pm.