The Helena area may soon get its first experience with a local-option sales tax, after the Department of Commerce recognized Craig as a "resort area," giving the small village on the Missouri River the chance to consider implementing a sales tax on certain goods and services, possibly only during certain times of the year.

The issue was raised as citizens looked for a way to pay for a sewer system, which the county says is necessary. Now that Craig is recognized as a resort town, it's up to citizens to determine whether they want a local sales tax placed on the ballot.

Several tourism-oriented communities around the state have a local sales tax in place, including West Yellowstone, Whitefish and Red Lodge. The tax is generally around 2 or 3 percent, and excludes essential items like groceries and medicine.

Those communities use the proceeds to fund infrastructure improvements like roads and sewers, and several also use the resort tax to provide property tax relief for citizens.

To be designated a resort area by the state and thus eligible for a sales tax, a community must have fewer than 2,500 residents (Craig has 75) and derive most of its income from "catering to the recreational and personal needs of persons traveling to or through the area for purposes not related to their income production" -- read: tourism.

That's certainly the case in Craig, which sits smack on one of the world's top tailwater trout fisheries, and is a popular destination for thousands of anglers from across Montana and the country from May through September.

"People recognize that there's so much money moving through the community, from people who don't live there but who use the infrastructure, use the services," said Lewis and Clark County Commissioner Ed Tinsley.

And of the handful of businesses in town -- a few fly shops, a bar, restaurant, market and auto repair shop -- most cater to tourists.

Chris Goodman, owner of The Trout Shop for the past 20 years, helped lead the effort to earn Craig its resort designation. Goodman says the sewer system makes sense to protect the community's livelihood -- "You can see how close we are to the river, and we're on the county's hit list. It's environmentally a pretty tender area."

Putting in a sewer system would help keep effluent out of the river, protecting a major source of income for local businesses, Goodman said.

Goodman acknowledges that putting the tax in place isn't a slam dunk even with the resort designation. Indeed there's some resistance among locals who don't want any new taxes at all, even those aimed primarily at out-of-towners.

""If you were able to determine who's local and say they wouldn't have to pay it," said Sid Wieder, who lives outside of Craig. "But I don't know how you could do that."

Goodman counters that taxing anglers is only fair, since they put so much pressure on the town's infrastructure.

"I tell them, 'Look, you guys always complain about the fly fishing, here's a way to extract a pound of flesh from them for the resources they're using,'" he said. "It's all out-of-state fishermen."

Melanie Raines, manager of Izaak's, said the restaurant's business increases tenfold in the summer months, which in turn means the business uses that much more water and produces that much more wastewater.

"I have mixed feelings," Raines said. "I don't think any new tax is very good, but Craig needs a sewer system, and we don't have a way to pay for it. And what impacts the (septic systems) is the tourists during fly fishing season, so it makes sense to put that tax in place, then those people are contributing to what they're impacting."

Chris Strainer, who owns Crosscurrents fly shops in both Helena and Craig, said he just spent $8,000 for a septic system on a rental property he owns in Craig.

He noted that many out-of-state customers are surprised to learn there's no sales tax, and he doesn't think having one would hurt business.

"We'll sell something for $19.95, they'll put $21 on the counter and we'll give them back a dollar and a nickel," he said. "They're surprised."

Strainer said that while he's "not a big tax lover," he likes the idea of directing the funds to a sewer system.

"We have a purpose in mind for doing this," he said. "This is different."

Reporter John Harrington: 447-4080 or john.harrington@

helenair.com.