Helena Mulls Sales Tax Hike

Helena could soon see a 1% bump in its sales tax, potentially adding around $2 million to the city's coffers each year. This hot topic was recently on the agenda at a Helena City Council meeting.

Why the Tax Talk?

Councilman Andy Healy acknowledges nobody wants higher taxes. But he told news sources, "Big picture is we have to raise them." Councilman Chris Willis first suggested the idea, framing it as a way to keep up with Helena's rapid growth and fund essential services.

Helena Growing Fast

Helena is booming! But the city council says it's operating with fewer resources than neighboring towns. They believe the jump from a 9% to 10% sales tax would bring Helena's budget in line with other similar communities.

Budget Blues

This proposal comes after an audit revealed the city blew past its budget by a whopping $11 million last year! Reports indicate a significant budget shortfall and overspending, particularly on those shiny new capital projects like the city hall and sports complex.

Where's the Money Going?

If approved, 25% of the new sales tax revenue would be dedicated to bond payments for those city projects. The rest would go into the capital project fund.

Resident Concerns

Those bond payments have been a sticking point. Residents were initially told these projects wouldn't cost them extra! Councilman Healy admitted, "We kind of jumped before we actually looked to see what was ahead of us." He hopes dedicating $500,000 annually from the tax hike to bond payments will ease those worries.

What's Next?

The City Council is planning a public hearing to discuss the proposed tax increase and will vote on the matter at their next meeting.