Sales and Use Taxes in Montana

April 13, 2006

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Montana does not impose any general sales, gross receipts, occupational license, use, or consumption tax based upon the sale or use of tangible personal property within the state. Montana does, however, levy a lodging facility use tax, a sales and use tax on accommodations and campgrounds, a rental vehicle sales tax, and a vehicle sales tax.

Lodging facility use tax. Any person who uses an overnight lodging facility for a period of less than 30 days must pay a 4 percent lodging facility use tax. The owner or operator of a facility must apply to the Department of Revenue for a registration number.

Accommodation and campground sales and use tax. Effective June 1, 2003, a 3 percent sales and use tax is imposed on accommodation and campground fees. This is in addition to the 4 percent lodging facility use tax. Each facility subject to the new tax must apply to the Department of Revenue for a seller's permit.

Rental vehicle sales tax. Starting July 1, 2003, a new 4 percent sales tax is imposed on the base rental charge of rental vehicles. Rental vehicles subject to the tax include automobiles, motorcycles, motorboats, sailboats, off-road recreational vehicles, and trucks with a gross weight less than 22,000 pounds. However, farm vehicles, travel trailers, motor homes, airplanes, snowmobiles, golf carts, and sail boards are not subject to the tax. Vendors subject to the tax must apply to the Department of revenue for a seller's permit.

New vehicle sales tax. A tax is imposed on all sales of new motor vehicles for which a state license is sought and an original application for title is made. The purchaser of the new motor vehicle is required to pay the tax when applying for a license from the county treasurer. The tax is based on the list price of the vehicle and is imposed at the rate of 1.5 percent of list price if purchased in the first quarter, 1.125 percent for the second quarter, 0.75 percent for the third quarter and 0.375 for the fourth quarter. The rate is 0.75 percent of list price for new vehicles registered as a fleet.

Local taxes. Designated resort communities or areas may impose resort taxes. The tax rate may not exceed 3 percent of the retail value of goods and services sold (except for goods and services sold for resale) within the community or area if voters approve. The tax applies to sales by lodging establishments, restaurants, and other public establishments that serve alcoholic beverages by the drink, destination ski resorts and other destination recreational facilities, and establishments that sell luxuries. Any such taxes are to be administered locally.