Resolution 6027 - RESCINDS RESO 5375 - Abolishes Payment in Lieu of Taxes PolicyRESOLUTION NO.6027
A RESOLUTION RESCINDING RESOLUTION NO. 5374 THAT ESTABLISHED THE
CITY OF KALISPELL POLICY THAT THE CITY WOULD REQUIRE IN CERTAIN
CIRCUMSTANCES AN AGREEMENT OF PAYMENT IN LIEU OF CITY TAXES
(PILT) BETWEEN THE CITY OF KALISPELL AND ANY NON-PROFIT ENTITY
RECEIVING A TAX-EXEMPT STATUS FROM THE STATE OF MONTANA.
WHEREAS, on July 6, 2009 the Kalispell City Council passed Resolution No. 5374 in which
the policy was established requiring payments in lieu of city taxes from any non-
profit entity receiving a tax-exempt status from the state of Montana, if that entity
competes directly with local property taxpaying entities, and seeks services from
the City of Kalispell requiring a building permit for new construction that creates
additional enclosed space; and
WHEREAS, Resolution No. 5374 was an expression of concern and response by the Kalispell
City Council to the revenue constraints brought on by a severe economic
recession and the fact its valuable municipal services could only be provided
through the receipt of property tax revenues paid by City residents who paid those
taxes; and
WHEREAS, during the course of the economic recession and subsequent recovery there were
only a small number of qualifying nonprofit real estate improvements constructed
with the associated PILT agreements actually established; and
WHEREAS, it is the desire of the Kalispell City Council to encourage nonprofit organizations
to engage in community building ventures and to provide such specialized
community services that the municipal government is unable to provide; and
WHEREAS, the Kalispell City Council has concerns that, going forward, Resolution No. 5374
may have a chilling effect upon the vigorous activities of the nonprofit
organizations that can provide such essential services; and
WHEREAS, the Kalispell City Council finds that it is in the best interest of the City, its
taxpayers, and citizens that Resolution No. 5374 be immediately rescinded and
that all existing PILT agreements be terminated.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION I. That it hereby immediately rescinds the policy of the City of Kalispell
expressed in Resolution No. 5374 and terminates all existing Payment in
Lieu of City Taxes (PILT) agreement.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, THIS 17TH DAY OF MAY, 2021.
Mark Johnso
Mayor
ATTEST:
AirJee Brunckhorst, CMC
City Clerk