The Senate on Friday approved House amendments to the measure, which redirects a portion of so-called "tourist taxes" to several programs and agencies that plan to use the money for tourism promotion and heritage preservation.
The legislation was sought by the tourism industry, which believes Montana needs to be more aggressive in promoting itself if it is going to compete with neighboring states for tourists.
"That is a 33 percent return," he said. "This is an excellent bill going forward."
Other senators were skeptical.
Sen. John Esp, R-Big Timber, said the money would be better spent at the local level because local officials have a better idea of what they want to promote.
Among the agencies that would receive extra money under the bill are the Montana Historical Society, Montana Travel Research Program, Montana Department of Fish, Wildlife and Parks, Montana Department of Commerce and the Capitol Art Preservation Trust.
Lawmakers in 2003 created the rental car tax and raised the hotel tax, otherwise known as the bed tax, to help address a state budget deficit and provide money for tax cuts and capital gains tax credits.
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