Retail Telecommunications Excise Tax (RTE)

Retail telecommunications services are any two-way transmission of voice, image, data or other information originating or terminating into a Montana Service address.

Montana follows the federal mobile telecommunications sourcing act and rules for specific landline, mobile telecommunications, and VOIP services.

Fees

Montana charges a 3.75% excise tax on all retail telecommunications services

Reporting and Payment Options

Due Dates

Reports and payments are due 60 days from the end of the calendar quarter:

  • First Quarter: May 30
  • Second Quarter: August 29
  • Third Quarter: November 29
  • Fourth Quarter: March 1

Penalties and Interest

The Retail Telecommunications Excise Tax (RTE) is subject to uniform penalties and interest.

Revenue Distribution

Retail Telecommunications Excise Tax revenue goes to the state general fund.

 2025 Legislative Changes: HB45

HB45 passed and signed by the Governor on May 8, 2025. HB45 focuses on revising telecommunications regulation laws.

Some specific details of the bill include:

  • Exempting Internet Protocol-enabled services from certain regulations, potentially increasing flexibility in the telecommunications market.
  • Removing previous restrictions on profit-sharing with customers under alternative regulatory frameworks, while allowing the commission to define promotional pricing and grant programs.
  • Amending various sections of the Montana Code Annotated (MCA) to clarify definitions related to telecommunications services, modify the process for utility service schedule changes, and establish a two-year statute of limitations for overbilling recovery actions against regulated companies.

Essentially, the legislation aims to streamline regulations, reduce oversight, and encourage competition in the telecommunications industry, while preserving important consumer protection measures. The bill took effect immediately upon passage and approval.

Related Laws

Contact Us

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

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