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Montana: So You Think You Are Sales and Use Tax-Free?

Montana currently does not have a general sales and use tax. However, “[a] tax is imposed on users of overnight lodging facilities, which include campgrounds, dormitories, condominium inns, dude ranches, guest ranches, hostels, public lodging houses, bed and breakfast facilities, and other structures containing individual sleeping rooms providing lodging facilities for periods of less than 30 days (15-65-101, MCA).”

In addition to the Facility Use Tax, Montana imposed a “…3% selective sales and use tax on accommodations and campgrounds.” The same facilities that are identified for the Facility Use tax are impacted by the additional sales and use tax. Since 2003, Montana has also imposed a “…4% sales and use tax on base rental charges for rental vehicles (15-68-102 MCA).”

These particular taxes are focused on the tourist industry and may not impact local Montana residents as much as visitors to the state. Funds from the Use tax go directly to support Department of Commerce activities, Historical Society maintenance, travel research, Department of Fish, Wildlife and Parks facility maintenance and other tourism activities. The additional sales tax on accommodations gets “…deposited in the state general fund (15-68-820, MCA).”

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Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”