Rental Vehicle Tax (RVT)

Overview

All rental vehicle users pay a sales and use tax for vehicles:

  • Rented for less than 30 days
  • Rented without a driver, pilot or operator
  • Designed to transport 15 or fewer passengers
  • Rented as part of an insurance or warranty contract

The tax doesn't apply to vehicles rented by the federal government if the sale is directly billed to and paid by the federal government.

State, county, and local governments still pay the vehicle rental tax.

Rental Vehicles

  • Automobiles, including:
    • Vans
    • Sports utility vehicles
    • Trucks with one ton or less capacity
  • Motorcycles, including:
    • Motor scooters with 50 horsepower or less
    • Quadricycles with 50 horsepower or less
  • Motorboats, including:
    • Canoes, kayaks or personal watercraft propelled by any motor or engine
  • Sailboats, including:
    • Any vessel using a sail or wind as its primary source of propulsion
  • Off-highway vehicles, including:
    • Motorcycles
    • Quadricycles
    • Dune buggies
    • Amphibious vehicles
    • Or any other vehicle powered by a 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, equipment or machinery
  • Travel trailers
  • Motor homes
  • Airplanes
  • Snowmobiles
  • Golf Carts
  • Sail boards

Seller's Permit

All rental vehicle vendors must apply for a seller's permit before engaging in business. You can apply for a seller's permit using the Registration/Application for Permit (Form GenReg).

Fees

Montana charges a 4% sales and use tax on base rental charges for rental vehicles.

Rental vehicle vendors filing on-time are allowed an allowance of 5% of the tax paid.

Rental Charges

  • Charges for time of use
  • Charges for mileage
  • Charges for personal accident insurance
  • Charges for additional drivers or underage drivers
  • Charges for accessory equipment, such as child safety seats, luggage racks, or GPS units

  • Vehicle discounts
  • Fees imposed to operate at an airport terminal
  • Motor fuel
  • Intercity vehicle drop charges
  • Taxes imposed by federal, state, or local governments

Third-Party Platforms and Peer-to-Peer Transactions

Third-party platforms must register for a seller's permit and collect and remit Rental Vehicle Tax. (15-68-101, MCA)

When renting through a peer-to-peer platform, either:

  • The vehicle owner or host registers, collects, and pays taxes on the base rental charge, and
  • The third-party platform registers, collects, and pays taxes on the third-party fees,

Or:

  • The third-party platform registers, collects, and pays taxes on both the third-party fees and charges related to the transaction.

We have entered into agreements with third-party platforms to allow for them to collect and remit taxes on behalf of the hosts.

Please contact us to discuss an agreement.

Reporting and Payment Options

Due Dates

The Form RVT is due on the last day of the month following the end of the calendar quarter:

  • First Quarter – due April 30
  • Second Quarter – due July 31
  • Third Quarter – due October 31
  • Fourth Quarter – due January 31

Penalties and Interest

The Rental Vehicle Tax (RVT) is subject to uniform penalties and interest.

Revenue Distribution

  • 75% of rental vehicle tax goes to the state general fund
  • 25% goes to a state special revenue fund to the credit of the senior citizen and persons with disabilities transportation services account

Related Laws

Contact Us

For more information, please contact the Department’s Business Tax Unit.

Phone
(406) 444-6900
Email
DORBitBTU@mt.gov