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Telecommunications Taxes and Fees


911 Emergency Telephone System Fee:
A fee of $1.00 per month per access line on each service subscriber in the state is imposed on the amount charged for telephone exchange access services. The fee does not apply to a service subscriber that the state is prohibited from taxing, such as the federal government, tribal governments, and enrolled members of an Indian tribe who reside on their own reservation. All revenues are deposited to a state special revenue fund for the development of emergency 911 systems in the state. (10-4-201, MCA through 10-4-212, MCA; 42.31.4, ARM)

Retail Telecommunication Excise Tax:
An excise tax of 3.75% is imposed on the purchaser and collected by the telecommunications service provider on the sales price of retail telecommunications services. Retail telecommunications includes the two-way transmission of voice, image, data, or other information that originates or terminates in Montana that is charged to a Montana service address. In addition, Montana has adopted the Federal Mobile Telecommunications Sourcing Act and sourcing rules for specific land line mobile telecommunications services. (15-53-128, MCA through 15-53-156, MCA; 42.31.5, ARM)

TDD Telecommunications Service Fee:
A fee of $.10 per month per access line on each service subscriber in the state is imposed on the amount charged for telephone exchange access services. The fee does not apply to a service subscriber that the state is prohibited from taxing, such as the federal government, tribal governments, and enrolled members of an Indian tribe who reside on their own reservation. All revenues are deposited to a state special revenue fund for the physically disabled that are unable to use traditional telecommunications equipment. This special revenue fund is used to provide telecommunications devices for the deaf (TDD). (53-19-301, MCA through 53-19-319, MCA).


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Rental Vehicle Tax


Rental Vehicle Sales Tax:
There is a 4% rental vehicle sales tax imposed on the purchaser, which is collected by the seller and remitted to the Department of Revenue.
Automobiles (including vans, sport utility vehicles, or trucks having a capacity of 1 ton or less)

Motorcycles:
Motor-driven cycles (meaning motorcycles or scooters with a motor that produces 5 horsepower or less)
Quadricycles (a four-wheeled motor vehicle, designed for on-road or off-road use, that has a motor that produces 50 horsepower or less)
Motorboats (including a canoe, kayak, personal watercraft, rubber raft or pontoon, propelled by any motor or engine of any description)
Sailboats (any vessel that uses a sail and wind as its primary source of propulsion)
Off-highway vehicles (including motorcycles, quadricycles, dune buggies, amphibious vehicles, deriving power from any source other than muscle or wind)
Any truck, trailer or semi-trailer with a gross vehicle weight of less than 22,000 pounds used to transport personal property
Farm vehicles, machinery, equipment, travel trailers, motor homes, airplanes, snowmobiles, golf carts, and sail boards are not subject to the tax.

The tax does not apply to a vehicle rented to the federal government, or any agency or instrumentality of the federal government if the sale is billed directly to and paid directly by the federal government. However, sales to a state, county, or local government are subject to the rental vehicle tax.

The rental vehicle sales tax applies when the vehicle is:
rented for a period not exceeding 30 days
rented without a driver, pilot, or operator
designed to transport 15 or fewer passengers
rented pursuant to a contract for insurance
rented pursuant to a warranty contract

Base rental charges include:
charges for time of use of the rental
charges for mileage
charges for personal accident insurance
charges for additional drivers or underage drivers
charges for accessory equipment (child safety seats, luggage racks, etc.)

Base rental charges do not include:
vehicle discounts
fees imposed to operate at an airport terminal
motor fuel
intercity vehicle drop charges
any taxes imposed by federal, state and local governments

A vendor that files and pays the rental vehicle sales tax timely is allowed a 5% vendor allowance, not to exceed $1,000 per quarter. In addition, each vendor that is required to collect and remit the 4% rental vehicle sales tax must apply to the Department of Revenue for a seller's permit before they can engage in business.

All revenues are deposited to the General Fund. (15-68-101, MCA through 15-68-820, MCA)


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Nursing Facility Tax and Utilization Fees


Nursing Facility Bed Tax:
Nursing facilities in Montana pay a utilization fee of $8.30 for each occupied bed day. $2.80 of the fee is deposited to the General Fund with $5.50 deposited to a state special revenue fund. (15-60-101, MCA through 15-60-211, MCA; 42.31.802, ARM through 42.31.810, ARM)

Hospital Facility Utilization Fee:
Hospitals in Montana pay a $50.00 utilization fee for each inpatient bed day.


An "Inpatient bed day" is a day of inpatient care provided to a patient in a hospital. Inpatient bed days include all inpatient hospital benefit days as defined for Medicare reporting purposes in section 216 of the Centers for Medicaid and Medicare Services Publication 10. Inpatient bed days also include all nursery days during which a newborn infant receives care in a nursery. The term does not include observation days or days of care in a swing bed, as defined in Section 50-5-101, MCA. The information return and payment for the hospital utilization fee is due to the Department of Revenue on or before the last day of the month following the calendar year. All revenues are deposited to a state special revenue fund for use by the Department of Public Health and Human Services. (15-66-101, MCA through 15-66-209, MCA: 42.31.1002, ARM).

Intermediate Care Facility Utilization Fee:
Intermediate care facilities in Montana pay a utilization fee based on quarterly revenues and resident bed days. This fee is 6% of the intermediate care facility's quarterly revenue divided by the resident bed days.

An intermediate care facility is a facility for the developmentally disabled or a facility for the mentally handicapped that is in compliance with federal standards. A resident bed day is a 24-hour period that a resident is present in the facility and receiving care, or in which a bed is held for a resident while the resident is on temporary leave from the facility.

30% of the fees collected are deposited to the general fund, and 70% is deposited to a state special revenue fund for use by the Department of Public Health and Human Services. (15-67-101, MCA through 15-67-209, MCA)

 


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Lodging Facility Use and Sales Taxes


Lodging Tax Guide

 

Lodging Facility Use and Sales Taxes:
There are two taxes imposed on users of an overnight lodging facility (such as a hotel, motel, campground dude ranch, and guest ranch, which are collected by the facility and remitted to the Department of Revenue. These two taxes are a 4% lodging facility use tax, and a 3% lodging facility sales tax, for a combined 7% lodging facility sales and use tax.

The tax applies to charges paid for the use of the facility for lodging, and does not apply to charges for meals, transportation, entertainment or any other similar charge. In addition, the tax does not apply to a hotel, motel or bed and breakfast facility whose average daily accommodation charge for a single person is $22.47 or less, for a facility or unit that is rented by the same user for a period of 30 consecutive days or more, or lodging paid directly by the federal government.

A facility that files and pays the lodging facility sales and use tax timely is allowed a 5% vendor allowance against the 3% lodging facility sales tax, not to exceed $1,000 per quarter. There is no vendor allowance allowed against the 4% lodging facility use tax. In addition, each facility that is required to collect and remit the 3% sales tax is required to apply to the Department of Revenue for a seller's permit before they engage in business. 
Revenues collected from the 4% lodging facility use tax are deposited to a state special revenue fund and is used by the Department of Commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials. Revenues collected from the 3% lodging facility sales tax are deposited to the General Fund.

4% Lodging Facility Use Tax: 15-65-101 MCA through 15-65-131, MCA; 42.14.101, ARM through 42.14.112, ARM

3% Lodging Facility Sales Tax: 15-68-101, MCA through 15-68-820, MCA

 

Lodging Tax Revenue Reports from the Montana Office of Tourism

Montana Tourism Funding Report from the Montana Department of Commerce
 

Resort Tax:
A resort tax is collected in certain Montana communities with populations under 5,500 who meet specific resort qualifications. The resort tax is a local option sales tax on the retail value of goods and services sold by lodging and camping facilities; restaurants and other food service establishments; public establishments that serve alcoholic beverages by the drink; destination recreational facilities; and establishments that sell luxuries. The rate is set locally and cannot exceed 3%. Local government administers the tax. (7-6-­1501, MCA through 7-6-1550, MCA)


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Wholesale Energy Transaction Tax


Wholesale Energy Transaction Tax:
A wholesale energy transaction tax of 0.015 cent per kilowatt hour ($0.00015 per kilowatt hour) of electricity transmitted by a transmission service provider is imposed on electricity transmitted in Montana. The tax is collected by a transmission services provider from an electrical generation facility or a distribution service provider and remitted to the Department of Revenue by the transmission services provider who controls or operates a facility used for the transmission of electricity. All revenues are deposited to the General Fund. (15-72-101, MCA through 15-72-117, MCA)

Universal System Benefit Program:
The Universal System Benefits Program provides funding for low income energy assistance, weatherization, energy efficiency activities, and development of renewable energy resources. Public Utilities and large customers are required to submit annual summary reports of their USB program activities. (69-8-402, MCA and 69-8-414, MCA)


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Contractor's Gross Receipts Tax


Contractor's Gross Receipts Tax:

Prime contractors and all levels of subcontractors are required to pay a 1% public contractor's gross receipts fee on all public contracts over $5,000. Contractors can obtain part or all of this fee back by requesting a refund for personal property taxes and certain fees paid on assets used in their contracting business and by claiming a credit on their Montana individual income tax return or Corporation License Tax return. All revenues are deposited to the General Fund. (15-50-101 MCA through 15-50-311, MCA; 42-31.2101, ARM through 42.31.2143, ARM)


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Consumer Counsel and Public Service Fees


Consumer Counsel Fee:

All companies providing services which are regulated by the Public Service Commission are subject to a quarterly fee on gross operating revenue generated by all regulated activities within Montana. This fee is set annually and applies to the fiscal year period October 1 through September 30. All revenues are deposited to a state special revenue fund and used to cover appropriations to the office of consumer counsel. (69-1-201, MCA through 69-1-230, MCA: 42.31.902, ARM)

Public Service Regulation Fee:

All companies providing services, which are regulated by the Public Service Commission, are subject to a quarterly tax on gross revenues excluding revenues from sales to other regulated companies for resale. The tax rate is set annually for the succeeding fiscal year. All collections are deposited in a state special revenue fund. (69-1-402, MCA)


We will begin processing Medical Marijuana Provider Tax Returns on October 1, 2017

Medical Marijuana Provider Tax Frequently Asked Questions


Q. When does the tax begin and when is the return due?

Your first taxable period begins July 1, 2017. Your tax return and payment are due 15 days after the end of the quarter.

• 3rd quarter July through September due October 15th

• 4th quarter October through December due January 15th

• 1st quarter January through March due April 15th

• 2nd quarter April through June due July 15th


Q. How much is the tax?

The tax is 4% for all quarters the first year beginning July 1, 2017 and ending June 30, 2018. Beginning July 1, 2018 and thereafter the tax is 2%.


Q. How do I file my return?

Taxpayers should file their return electronically using My Revenue beginning in October 2017.


Q. Am I required to file a tax return if I have no sales for the quarter?

Yes. You must still submit a tax return on My Revenue for zero dollar returns

Q. How do I pay the tax?

You can pay online when you file your return on My Revenue, or


Send checks and money orders to:

Montana Department of Revenue
PO Box 6169
Helena, MT 59604-6309


Q. How do I pay in cash?

All cash payments must be in a tamper-evident deposit bag no larger than 11″ x 13″.

Multiple bags may be used if needed. Bags may be purchased online at numerous locations and office supply stores.

1. Print a paymnet voucher from My Revenue

2. Include a copy of the voucher in each deposit bag

3. Write your name and Provider ID on each deposit bag

To maintain the accuracy of your deposit, please sort cash by denomination and face all bills in the same direction. We will not accept any mutilate or contaminated currency.

Exact amount is required. The department is not equipped to provide change.

Sample Bag

Sample Bag

Q. Where do I pay in cash?

We will only accept cash payments at our drop box in Helena:

Montana Department of Revenue
340 N. Last Chance Gulch
Helena, MT 59601

Monday through Friday, 9:00 AM to 4:00 PM


Q. What records do I need for tax purposes?

Your records should track all sales of marijuana products, showing the name and address of each purchaser, the date of sale, and the quantity, kind, and price before any discounts or reductions of each product sold. Your records should also include an established retail price list or catalogue that would include changes to the established retail price for a given period and price adjustments for aged product or bulk purchases. Records should be kept for 5 years.


Q. What will be taxed?

All gross sales of marijuana and marijuana infused products are taxable. The tax is on the gross retail price, which is the established price for which a marijuana product is sold to a purchaser before any discount or reduction. “Sale” or “sell” means any transfer of marijuana products for consideration, exchange, barter, gift, offer for sale, or distribution in any manner or by any means.


Q. Can I change my established retail price?

Yes, if you change your price and that price is offered to all customers, that is the new established retail price. The established retail price and any changes to that price should be documented and maintained in your records.


Q. Can I offer a reduced price for a bulk purchase?

Yes, if the bulk price is consistent, documented and offered to all customers.


Q. How do I calculate the tax on discounts to individual customers?

The tax will be applied on the established retail price for the product. Discounts for a group or individual do not change the established retail price. Products priced below the established price for a select demographic is considered a reduction price, tax must be applied to the established retail price.


Q. Can I reduce the price for aged product?

Yes, if the new price is offered to all customers that is the new established price.


Q. Am I taxed on bad debt sales (sales deemed uncollectible)?

Yes, the medical marijuana tax is calculated on the Marijuana product provider’s gross sales.


Q. Can I claim a reduction on my medical marijuana return for using higher value products or superior production techniques?

No, the law does not provide for exemptions or reductions of medical marijuana tax for cost of goods sold.


Q. What is subject to tax if I sell marijuana infused products? Can I separate the ingredients on the receipt and only tax the value of the marijuana included in the product?

The entire gross sale amount of the end marijuana infused product is subject to the tax.


Q. Am I taxed on complimentary marijuana or marijuana infused products I give away?

Yes, the complimentary gifts are taxed at the established retail price.


Q. Will the Department of Revenue accept payment from another entity on behalf of the taxpayer?

Yes, we can accept payment for taxes on behalf of another entity if the payment is properly directed by payee.


Q. If I am a registered cardholder that cultivates my own product, am I subject to medical marijuana taxation?

No, the taxpayer is the Licensed Providers. If you only cultivate for personal use this is not taxable, being a licensed provider for additional cardholders is a taxable relationship.


Q. If I am a guardian and registered provider for a minor, are those transactions taxable?

No, in this situation the law provides that the guardian as the registered provider is responsible for the control of the product and this would not create a taxable situation. If the product is purchased from a licensed provider who is not the guardian of the minor, this does create a taxable transaction.


Q. If I offer product on credit, when is the tax reported?

The tax is reported in the quarter the transfer of product occurred.


Q. Do I need a license separate from my Medical Marijuana license to sell vapor products or tobacco?

Yes, by law you need a separate license to sell vapor products or any tobacco products.


For more information or to purchase one of these licenses go to eStop Business Licenses.