In 1992, voters in the Big Sky Resort Area approved the implementation of a Resort Tax on “luxury” goods and services, excluding essential items.

In 1998, the electorate voted to establish a District responsible for overseeing the administration of this tax. Local businesses within the District collect and remit the tax. A five-member volunteer Board of Directors, elected by the community, allocates the tax revenue to address key local needs. The District is managed by a small, paid staff hired by the Board.

Following a strategic planning exercise in 2004, the Chamber of Commerce spent several years researching public sentiment and legislative requirements surrounding incorporation, with funding from BSRAD.

The Big Sky community explored ways to improve coordination among local entities and enhance future planning. After consulting with the Big Sky Chamber, the MSU Extension Local Government Center (LGC) identified six potential options for addressing local governance challenges, including the formation of a community council, the creation of a special district, or modifying the existing Resort Tax district. Each option had benefits and challenges, and the community needed to decide which best suited its needs and resources. Other unincorporated communities in Montana were also interested in Big Sky's approach.

Starting in 2022, the grassroots group, Big Sky Local Governance, LLC, met with the intention of bringing incorporation to a vote in November 2023. This group’s work generated the interest that eventually led to the formation of the exploratory group that created this report.

In June and July 2023, 12 leaders from diverse stakeholder groups in Big Sky met for three days to discuss the potential incorporation of the community. Convened by Big Sky Resort Area District (BSRAD) leadership, the group aimed to understand shared issues and explore possible incorporation options. Over 12 hours of discussions, they developed a strategy and timeline for a future community-driven incorporation study. While no decisions were made, the group worked collaboratively and emphasized the importance of community input in determining whether incorporation should move forward.

The Big Sky Resort Area District (BSRAD) is partnering with WGM, along with ECOnorthwest (ECO) and M2O Group, to help citizens make informed decisions about local governance. WGM, an engineering, planning, and design firm, offers technical expertise and has been building sustainable communities since 1965. ECO specializes in economics, finance, and planning, using data-driven approaches to help clients make informed decisions. M2O brings expertise in public outreach, particularly within the Big Sky community, ensuring effective communication and engagement throughout the process.

An incorporated municipality in Montana is a legally established city or town that has gone through the process of incorporation under state law. Incorporation provides the municipality with the authority to govern itself through local ordinances, manage local services, levy taxes, and oversee land use planning within its boundaries.

Currently, both Madison and Gallatin counties govern the Big Sky area; that can remain status quo. However, there are some changes that could also happen to the county government structure, such as the addition of a community council, districting county commissioners, or the addition of self-governing powers via a charter. These are just a few options, and there are many more.

Both Gallatin and Madison counties elected to create a study commission to review the county government structures in June 2024. While this may sound closely related, the study commission will be evaluating and possibly recommending changes to the county's government structure and not necessarily the creation of an incorporated municipality in Big Sky. However, county governance is very important and we encourage participation in this endeavor as well.

The final report will be a fact-based document that lists the existing conditions in Big Sky, state forecasted community needs, and will evaluate three scenarios for governance in Big Sky. It will state facts regarding policy, legal constraints, and fiscal analysis to ensure that the Big Sky community can make informed decisions on ballot initiatives such as incorporation or any other governance changes.