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Rental highlighted in Tranel attack ad is legal, Whitefish officials say

by KATE HESTON
Daily Inter Lake | October 17, 2024 12:00 AM

Democratic congressional hopeful Monica Tranel has attacked rival GOP U.S. Rep. Ryan Zinke for illegally operating a vacation rental in Whitefish, but officials say the property is in compliance with city law.  

In a campaign ad aired on television, Tranel is seen filming at Zinke’s Snowfrog Inn property in Whitefish, alleging that the property operates illegally and receives a special tax break from the city.  

But the property, located at 409 W. Second St., which has operated as a bed and breakfast under a conditional use permit since 2013, is following its permit, according to city officials. It is also listed as Zinke’s primary address, and the congressman can be seen waving at Tranel from the property in the ad.  

“Good morning, Monica,” Zinke shouts. 

“All of Zinke’s Whitefish properties are currently in compliance with city regulations,” said David Taylor, director of planning and building for Whitefish.  

In the ad, the second in a series where Tranel visits Zinke’s rental properties, the Democrat states that Zinke’s property receives a special tax break, “driving up home prices and property taxes for us.” 

When asked if there was any special tax break for the Zinke property, Whitefish City Manager Dana Smith said no. 

The special tax break Tranel is referring to is a city wide 3% resort tax that is allocated for property tax relief for all commercial or residential properties within city limits.  

“Our process is not one where you need to contact the city for your relief, it just happens,” said Smith. “It’s automatic through our property tax system.” 

The property, owned by Zinke since 1998, received property tax relief prior to it becoming a vacation rental in 2013. The only thing that changed, Smith said, was its market value, so the switch f om residential to commercial may have changed the amount of relief provided.  

The property received a tax break of $484.76 in 2022 and $376.80 in 2023, according to county tax records.  

The ad claims that the vacation rental operates illegally as an Airbnb. The claim arose from a stove placed in the unit, a violation of the conditional use permit for a bed and breakfast, which states that “overnight lodgers shall not have direct access to cooking facilities.” 

Tranel's advertisement features a photo from the rental’s listing showcasing a kitchenette. Kitchenettes are permissible, but other photos from the rental property listing feature a stove.  

Prior to the release of the campaign ad, the property manager called the city to ensure that it was in compliance with the permit, according to Codi Evenson, short term rental specialist for Whitefish.  

Evenson told the manager to remove the stove, which she has done, returning the property to compliancy, though the listing photos remain outdated. According to the property manager, Evenson said, the property seldom sees guests. 

“There's nothing illegal about operating a bed and breakfast or a short-term rental in Montana,” said Heather Swift, a spokesperson for the Zinke campaign, in an email. “The Zinke family has dozens of permits and licenses to operate their family business, they pay their taxes, and they are proud to support about a half dozen local small businesses who help them manage the spaces." 

Swift accused Tranel of violating the Zinke family’s privacy, intimidating Zinke’s wife and daughter in doing so. Swift also pointed to a 2021 candidate disclosure report that Tranel filed showing her as the owner of between $15,000 and $50,000 in Airbnb stock. 

The ad came up again during the candidates’ first — and likely only — debate on MTN News last week in Helena.  

“[Tranel’s] latest act is a violation of my home,” Zinke said. 

In a statement emailed to the Inter Lake, Tranel repeated an accusation from the advertisement: that Zinke is a housing profiteer.  

Zinke is “personally enriching himself from the housing crisis at a time when families are living in campers because they can’t afford a home,” Tranel said in the statement.  

This is the second election cycle where Tranel and Zinke will face off for Montana’s 1st Congressional District. Two years ago, Zinke won by around 3 percentage points against Tranel – fewer than 8,000 votes separated the two.  

Recent polling shows another close race this November. Zinke led Tranel by 4 points in a September survey commissioned by Inside Elections. A poll conducted by a partisan firm on behalf of the Democratic Party at the same time showed Zinke with a one-point lead.  

Reporter Kate Heston can be reached at kheston@dailyinterlake.com or 758-4459.