Lodging Facility Sales and Use Tax
Overview
Lodging accommodations collect and remit lodging facility sales and use taxes.
Lodging accommodations include:
- Hotels
- Motels
- Campgrounds
- Resorts
- Dormitories
- Condominium Inn
- Dude ranches
- Guest ranches
- Hostel
- Public Lodging House
- Bed and breakfasts
- Vacation rentals (home, apartment, timeshare, room, or rooms)
- Online hosting platforms and short-term rental marketplaces
Taxes
Montana charges a combined 8% lodging facility sales and use tax:
- Use Tax – 4%
- Sales Tax – 4%
- Total Sales and Use Tax – 8%
The tax applies to the total amount paid by the purchaser for which the sales of accommodations are provided.
The tax is not applied to charges for meals, transportation, entertainment, or similar separately stated charges that are specifically excluded from what the purchaser must pay to facilitate the sale of accommodations.
Some charges are exempt from collecting the Lodging Facility Sales and Use Tax, such as:
- Units or spaces rented 30 continuous days or more to the same purchaser
- Some federal employees may have a credit card which is billed directly to the federal government. These are specific GSA SmartPay cards. Please use the Lodging Tax Exempt Form to record these exemptions. (Other possible lodging tax exemptions are described in the Lodging Tax Exempt Form)
A seller filing and paying the lodging facility sales and use taxes on time is allowed a 5% vendor allowance against the 4% lodging sales tax.
There is no vendor allowance for the 4% lodging facility use tax.
Due Dates
Reports and payments are due on the last day of the month following the calendar quarter:
- First Quarter – April 30
- Second Quarter – July 31
- Third Quarter – October 31
- Fourth Quarter – January 31
Penalties and Interest
The Lodging Facility Sales and Use Taxes are subject to uniform penalties and interest.
Revenue Distribution
The Lodging Sales Tax and Lodging Facility Use Tax distribution can be found at 15-65-121, MCA and 15-68-820 MCA.
HB45 Signed into Law – May 8, 2025
This bill revises laws related to lodging facility use tax revenues and expands protections for vulnerable individuals. Key provisions include:
- Mandating that the Montana Department of Commerce dedicate lodging facility use tax revenues to specific purposes as outlined in MCA 15-65-121
- Expanding and making permanent the Emergency Lodging for Victims of Domestic Violence or Human Trafficking Program
Senate Bill 52 Changes
Senate Bill 52, includes changes to the seller of accommodations and who is ultimately responsible for the collection and payment of the Lodging Facility Use Tax and Sales Tax.
This bill requires short-term rental marketplaces to register and collect, report, and pay taxes on any sale facilitated by the short-term rental marketplace.
Online hosting platforms, which include online travel companies or third-party reservation intermediaries, are required to collect and report the taxes as a seller of accommodations in Montana.
The short-term rental marketplace and online hosting platforms should now be collecting, reporting, and paying all taxes from sales through their online hosting platform.
Lodging Facility Sales and Use Taxpayers will still be required to pay taxes on any sales that occur outside of a short-term rental marketplace or online hosting platform services.
For quarter ending 12/31/2021, short-term marketplace and or online platform services will be reporting sales on the "other" line located on the Lodging Facility Sales and Use Tax form.
Contact Information
For more information, please contact the Department’s Business Tax Unit.
- Phone
- (406) 444-6900
- DORBitBTU@mt.gov