Thus, reallocation will not solve the problem and if implemented will exacerbate it. That leaves the second alternative, and everyone knows that most people demand tax relief, not more taxes. I suggested a sales tax that includes a rebate to Montana residents in their property and income tax bills for the sales tax they pay, thus holding them harmless, with actual refunds to those residents who pay no income or property taxes. As another alternative, residents simply will not pay the tax. But, since as usual the devil is in the details, many people will want to know how such a tax works.
Several approaches come to mind.
As one approach, the state can assist stores and businesses to implement the sales tax by charging it only to non-residents. The cost of the technology for the seller to check the residency of the purchaser is minimal and can come from the proceeds of the tax. Certainly other possibilities exist to reach the desired objective. Most important, I believe Montana residents will need to know the procedures to hold them harmless before any such tax is implemented. Some also have inquired about the amount of revenue potentially available.