PHILIPSBURG — With its quaint shops, historic buildings, and even an award-winning brewery, the town of Philipsburg — established in 1890 — is a favorite getaway for tourists in the summer and winter months.
However some residents say that the infrastructure is outdated and even dangerous, so town leadership is proposing a resort tax that will be on the ballot in June.
"I care greatly about this town. I have grown to love it and this is home and I want the tanks to fill up when you flush the toilets and I want the water to be dependable and I want it to be clean and I want it to, you know, nothing to be wrong with it, but these things cost money," says Scott Lyons, the manager of a boutique hotel and a town councilperson.
Lyons is one of five council members tasked with fixing infrastructure problems — including a seven-mile-long drinking water transmission line that's made of a patchwork of pipes dating from World Wars I and II.
Stormwater runoff and the town’s sewer system also need big updates.
"On West Broadway every year we have potholes and they used to be the size that could break an ankle, and now they could hide half a Subaru," says Lyons.
In all, Lyons estimates the cost to fix Philipsburg's infrastructure is close to $100 million, so the council is floating a 4% resort tax that will be on the ballot for voters to decide on June 4, 2024.
"The town has to deal with infrastructure," says Lyons. "There’s only so many ways that we can do this because we just don’t have the money. So we can raise water rates and we can raise sewer rates but you can only do that so much because there’s only so much that people can afford. Or we can get other people to help, especially other people who are impacting the system."
Lyons says items that are necessities like food from the grocery store and nonprofits like the thrift store will not be taxed but food, drinks, and things like art and jewelry would be taxed.
"The city council, I give them credit for wanting to undertake these projects in a timely manner and I understand the need for revenue to support that, but in reality, they’re trying to squeeze a turnip here by taking that money out of our hands," says Gem Mountain Sapphire Mine and Gem Gallery owner Chris Cooney.
Cooney's business has a unique link to the town’s mining history and at his storefront in town he sells experiences like panning for gems that, when found, can be turned into jewelry.
He says that even though the tax is meant for visitors, locals within a 100-mile radius will be the ones to foot the bill and he doesn't think that is fair.
He also worries about the impact it will have on his and other mom-and-pop shops that only serve tourists for a short period of time in the summer months and ski season, which was slow this year due to the mild weather.
He also says Philipsburg shouldn't even be considered a resort town, because unlike West Yellowstone or Columbia Falls which border national parks, it doesn't see the huge influx of national and international visitors.
"We’ve got this incredibly small community with this core group of businesses that have a higher price point than maybe your average retail shop in West Yellowstone selling t-shirts. And are we going to be able to capture that sale when the proposed purchaser finds out it's going to be 4 or 5% more expensive than the price that’s on the tag because that’s what we have to charge in order to supply the city their revenue stream."
