Lodging Facility Sales and Use Tax
Two taxes are imposed on users of overnight lodging facilities (such as hotels, motels or campground facilities).
The Lodging Facility Use Tax is 4% of the lodging charge and is collected by the owner or operator of the facility. Proceeds from the tax are deposited in a state special revenue fund to the credit of the Department of Revenue. Department administrative costs are paid, various state funds are reimbursed for taxes paid by state agencies for in-state lodging and $400,000 each year goes to Montana Heritage Preservation Fund. The balance is distributed: 67.5% to the Department of Commerce for its direct use, 1% to the Montana Historical Society, 2.5% to the university system for the Montana Travel Research Program, and 6.5% to the Department of Fish, Wildlife and Park for maintenance of facilities. The remaining 22.5% goes to various regional nonprofit tourism corporations unless that particular city-county area collects in excess of $35,000 in proceeds annually. In this instance, half of the amount available for distribution to the nonprofit tourism corporation would instead go to a nonprofit convention and visitor's bureau in that city-county region. (MCA 15-65-111, 15-65-121).
The Lodging Facility Sales Tax is a 3% tax on accommodations and campgrounds. This tax is in addition to the 4% lodging facility use tax and is effective for accommodations and campground fees collected on or after June 1, 2003. Proceeds from the tax is deposited in the state's general fund. Any sales to and uses by the U.S. Government, or any agency or instrumentality of the U.S. Government, are exempt from the sales and use tax. Facilities are allowed a 5% vendor allowance (not to exceed $1,000 in a quarter) if the tax is timely and fully remitted to the Department of Revenue. The vendor allowance applies only to the 3% sales and use tax; it does not apply to the 4% lodging facility use tax. Each facility with sales subject to the 3% sales and use tax must apply to the Department of Revenue for a seller's permit. (MCA 15-88-101 through 15-68-860)
Last updated 1/23/2012 2:30:59 PM