Montana Department of Revenue

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COVID-19

COVID-19 Update on Military Income

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Currently, at the national level, the order in effect to activate service members to provide COVID-19 related assistance is the President’s Executive Order of March 27, 2020.

Governor Bullock has also implemented the activation of the Montana National Guard for state purposes.

This impacts the state taxation of the related military income as follows:

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National Guard

Montana National Guard salaries continue to be subject to Montana income tax.

Montana law provides that salaries received by National Guard servicemembers are exempt from Montana income tax only if received while serving under an order issued pursuant to United States Code Title 10, or for service in a homeland defense activity as defined in 32 U.S.C. 901 or in a contingency operation as defined in 10 U.S.C. 101.

Orders received by the Montana National Guard servicemembers to provide COVID-19 related support in Montana were issued by Governor Bullock. These orders were not issued as part of a homeland defense activity or contingency operation. As such, the salaries received while serving under these orders are not exempt from Montana income tax.

We recognize that the response to COVID-19 is ongoing. Therefore, we are committed to monitor the National Guard’s response to this emergency, as well as the corresponding federal and state orders issued relative to their service, to ensure fairness in our decisions regarding their wages.

Reserve Component of the Armed Forces

The Executive Order of March 27, 2020, was issued pursuant to United States Code, Title 10 by the President of the United States and specifically addressed members of the Ready Reserve. As such, salaries received by Reservists who were ordered to service as part of this Executive Order are exempt from Montana income tax.

(Updated October 1) Phase II Guidelines for Alcoholic Beverage Licensees and Agency Liquor Stores

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Reopening the Big Sky
Phase II Guidelines for Alcoholic Beverage Licensees and Agency Liquor Stores Effective June 1, 2020

Updated October 1, 2020

If local jurisdictions have more restrictive guidelines, those must be followed instead.

Download a printable version of these guidelines. (PDF, 169 KB)

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On-Premises Licensees

All On-Premises Licensees must follow these guidelines:

Service Spacing and Cleaning

  1. Follow a specific cleaning plan meeting the Department of Public Health and Human Services (DPHHS) Guidelines:
    • Clean all surfaces between customers, including:
      • Tables
      • Bar counters
      • Chairs
      • Bar stools
      • Booths
      • Condiments (including holders)
      • Napkin holders
      • Décor
      • Menus
      • Gaming machines
    • Remove any table items which cannot be adequately cleaned between customers.
    • Clean all growlers prior to refilling.
    • Do not refill drinks. Provide a new glass each time.
    • Do not provide self-service cups, straws, lids, condiments, beverages, or food.
    • Do not reuse drink coasters unless they can be disinfected between patrons.
    • Do not provide community peanuts or other foods. You may serve these in individual customer containers.
  2. Keep operational gaming machines must be 6 feet apart. Gaming machines are considered tables for the purpose of serving food and drinks.
  3. Limit your occupancy to 75% of your normal operational capacity to allow for adequate group spacing.
  4. When customers are waiting in line, keep groups that are not from the same household separated by an appropriate distance. If your waiting area is not large enough to allow social distancing, close the waiting area to customers.
  5. Limit all tables to 10 customers per table.
  6. Limit gaming machines to one customer per machine.
  7. Keep 6 feet of physical distance between groups or tables. You can accomplish this by:
    • Increasing table spacing, removing tables, or marking tables as closed;
    • Providing for a physical barrier between tables; or
    • Providing back-to-back seating with adequate separation.

Bar and Counter Service

  1. Do not allow patrons to stand and mingle at the bar or elsewhere. All patrons should have a place to sit.
  2. You may allow patrons to sit at bars or counters if:
    • Bar seating is following social distancing and sanitation protocols or other protective measures such as a protective barrier;
    • Bar seating is approved by the local health department; and
    • Bar seating follows these requirements:
      • No bar seat may be within 6 feet of a well or taps, an area where drinks are passed to servers, ice machines, or other areas used to prepare or serve food or beverages;
      • Barstools are spaced 6 feet apart. If a group of 6 or fewer comes in and request to be seated together, a staff member may move seats to group them together, then separate the seats again once the group leaves;
      • If bars cannot keep 6 feet from bar seating and staff areas used for service preparation, a physical barrier or closing may be used to protect the staff.
  3. Wells taken out of use are marked with a sign to remind staff. Keep a designated area at the bar to allow patrons to place and receive orders following these guidelines:
    • Only one patron may use this space at a time.
    • Keep 6 feet between all patrons from separate groups.
    • Patrons may receive their drink or order, then return to their seat.

On-Premises Hours

Breweries, Wineries, and Distillery Sample Rooms

Breweries, wineries, and distilleries must close their sample room and the normal time and not reopen until the normal time the next day. No deliveries may be made outside of sample room hours.

All-Beverage or Beer Licensees

Bars, restaurants, and casinos with all-beverage or beer licenses may be open 8:00 a.m. to 12:30 a.m. This includes catered events. All other catering requirements are still mandatory.

All customers must be out of the facility by the close of business at 12:30 a.m.  No deliveries may occur between 12:30 a.m. and 8:00 a.m.

Restaurant Beer and Wine Licenses

Restaurants with a Restaurant Beer and Wine License may be open 11:00 a.m. to 12:30 a.m., but must stop allowing alcohol consumption at 11:00 p.m. This includes catered events. All other catering requirements are still mandatory.

All customers must be out of the facility by 12:30 a.m. No deliveries may occur between 11:00 p.m. and 11:00 a.m.

Additional Guidelines and Allowances

All licensees must follow all laws pertaining to the Responsible Alcohol Sales and Service Act (16-4-1001, MCA).

During Phase II, all licensees may:

  • Take orders and payments on the phone or by computer.
  • Sell for delivery, curbside pickup, drive-up or take-out for off-premises consumption prior to closing time.

    • Licensees and their employees (with no age limit, but must be server trained) may carry alcohol in original packaging1 curbside or to a parking area. This includes growlers with beer and table wine.

    • Licensees and their employees (at least 21 and server trained) may deliver alcohol “off-site” in original packaging1. This includes growlers with beer and table wine.

Selling Alcohol for Off-Premises Consumption

All licensees may sell alcohol for off-premises consumption prior to closing time.

All-Beverage and Beer Licensees

All-beverage and beer licensees must:

  • Sell alcoholic beverages in individual servings2 for take-out only. The buyer assumes liability for local or state regulations regarding open container laws.
  • Licensees employees must be at least 18 and server trained.

Breweries

Breweries must:

  • Sell only in original packaging1, including growlers with beer, or individual servings2 if they meet consumption guidelines3.

Wineries

Wineries must:

  • Sell only in original packaging1, including growlers with wine, or individual servings2 if they meet consumption guidelines3.

Distilleries

Distilleries must:

  • Sell up to 1.75 liters per person per day.
  • Sell only in original packaging1 or individual servings2 if they meet consumption guidelines3.

Restaurant Beer and Wine Licensees

Restaurant beer and wine licensees must:

  • Sell only in original packaging1 or individual servings2 if they meet consumption guidelines3.
  • Sell beer and wine only to a patron who orders food, with that beer and wine stated on the food bill.

Off-premises Licensees and Agency Liquor Stores

Off-premises licensees and agency liquor stores may only sell products in original packaging1.

Beer Wholesalers and Table Wine Distributors

Beer wholesalers and table wine distributors may coordinate with retail licensees and with agency liquor stores for pickup of table wine for any quantity of product that is agreed upon.

EXPIRED September 30, 2020 TTB Circular 2020-3: Wholesalers and distributors may no longer extend more than 7 days credit to a retailer.

Continued Prohibitions under Phase II

No licensee or agency liquor store may:

  • Sell to a person under 21.
  • Sell to any person actually, apparently, or obviously intoxicated.
  • Have a third-party service such as Grubhub order, pickup, or deliver alcohol.
  • Canvass for, or solicit, orders for alcohol. Customers must initiate the sale of alcohol either on the phone, in person, or online. Normal advertising rules apply.

Virtual Special Events and Catered Events NOT allowed.

1. Original Packaging means the sealed container in which a manufacturer packages its products for retail sale. This includes bottles, cans, kegs, and growlers, but does not include lines or piping for carrying product from a manufacturer’s premises to a retailer’s premises.

2. Individual serving means not more than 16 ounces of beer, not more than 2 ounces of liquor, not more than 7 ounces of wine, or a proportional combination thereof. For example, 1 ounce of liquor mixed with 8 ounces of beer.

3. Consumption guidelines means all-beverage licensees, on-premises beer licensees, restaurant beer and wine licensees, breweries, wineries, and distilleries may serve alcohol in individual servings for consumption off-premises if the consumption occurs in an area adjacent to the licensee’s approved premise and the licensee has received written approval from the governing local government. The written approval must be retained at their place of business. For breweries and distilleries individual servings are restricted to the sample room limits for the combined on-premise and off-premise consumption. This provision does not restrict off-premises sales made by on-premises retailers or manufacturers that are otherwise authorized by Montana law.

Temporary Process for Modifying a License During Phase II

Financing

As a reminder, institutional loans (bank loans) do not require prior approval. Notification that a licensee has obtained a bank loan is only required with the license renewal submission.

Non-institutional loans (non-bank loans) must have prior approval. In order to speed up the review process, please follow these guidelines:

Fax or mail may not be processed as quickly as online submissions.

Be sure to supply all required documents. Before we can conduct our review, an application must be complete.

The following documents are required:

  • Non-institutional loan (Form 13).
  • Personal/criminal history statement (Form 10 or Form 10A) for each person providing funding.
  • Loan agreement and/or promissory note.
  • Amortization schedule and/or other applicable contracts or documents.
  • Source of funding for the loan (e.g., 6 months of bank statements).
  • As noted in the above section, the requirements for fingerprint cards will temporarily be waived.

Financing application submissions will be given priority.

Additional Accommodations

During this time, we will allow debt holders (landlords, lenders, etc.) to provide temporary reprieve from payments normally required by law and rule. Bone fide emergency loan or lease agreement modifications will not be considered an improper NIL or undisclosed ownership interest.

Any agreement between the licensee and the debt holder to defer or forgive payments or change terms must be documented. The documentation should include details of the modification such as:

  • Interest rate adjustment.
  • Monthly payment adjustment.
  • Monthly payment “holidays” or forgiveness.
  • Change in loan terms.
  • Timeframe for the modification (e.g., temporary or through the term).
  • Other accommodations.

Documents should be submitted to the Department no later than with the licensee’s annual license renewal application, due June 30.

Key Personnel Changes

The license renewal form (due June 30) requires disclosure of any changes to mangers, officers, or directors. Please ensure all changes are reported at that time (or before).

Alterations to Licensed Premises

On premises retailers and manufacturers may want to alter their licensed premises to add additional outdoor space. As an accommodation during this time:

  • You may work with your local officials to get their approvals prior to applying with the Department.
  • Work with the Department to update your floorplan.
    • If you can’t immediately meet suitability but have local official approval, the Department will grant temporary approval and will work with you to meet suitability and gain full approval.

Adequate cleaning and distancing must be maintained in outdoor space as well.

Paycheck Protection Program (PPP) Tax and Deduction Clarifications

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The Paycheck Protection Program (PPP) is a loan at first that becomes a grant if certain requirements are met.

To the extent the loans are forgiven under the CARES Act, the amounts are not included in gross income and are not taxable.

IRS Notice 2020-32 provides that the business expenses paid with the loan-grant money are not deductible for federal tax purposes. Because the PPP is a loan-grant and not a credit, 15-30-2110(4), MCA, does not apply and the business expenses offset by the grant are not deductible for Montana tax purposes either.

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COVID-19 Department of Revenue Property Assessment Updates

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The Property Assessment Division (PAD) staff, for the most part, is still working remotely. We do have a limited number of people working in offices where the space allows for social distancing and other COVID-19 safety protocols can be met. We have not started to open our offices up to the public yet; we will begin to develop plans to do so this week. We will coordinate with local government officials as we move forward in these planning activities.

Beginning this week, we are going to allow appraisers to be more active in the field, picking up new construction and updating current property data. They have been directed to follow current CDC guidance, How to Protect Yourself & Others – Coronavirus Disease 2019 (COVID-19). This includes proper social distancing and the use of protective face coverings. We will monitor and adjust this plan accordingly.

Personal Property assessment notices have been sent to print and mail, dated May 8, 2020.  Personal Property downloads will be available for all counties May 16-17. PAD will be doing final review of Real Property assessment notices starting in the last week of May, the notices will be sent to print as reviews are completed. Real Property assessment notices will be dated June 19, 2020, downloads will be available June 6-7.

Thank you.

Download a printable version of this letter (PDF, 95 KB)

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Governor Bullock’s Phased Approach for Reopening Bars and Restaurants

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Phase I guidelines will be in place until June 1, 2020 when Phase II guidelines go into effect.

If local jurisdictions have more restrictive guidelines, those must be followed instead.

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Phase I Guidelines for Alcoholic Beverage Licensees and Agency Liquor Stores

Download these guidelines (PDF, 227 KB)

Phase I Guidelines for alcoholic beverage licensees and agency liquor stores.

  • For on-premises consumption, a specific cleaning plan must be implemented following Department of Public Health and Human Services (DPHHS) guidelines:
    • All surfaces, including tables, chairs, booths, condiments, napkins, décor, menus and gaming machines, must be cleaned between customers.
    • Table items should be removed if they can’t be adequately cleaned between customers.
    • Growlers must be cleaned prior to being refilled.
    • Drinks are not to be refilled. New glasses must be used.
    • No self-service of cups, straws, lids, condiments, beverages or food.
  • Gaming machines that are operational must be separated by 6 feet.
    • Gaming machines will be considered tables for the purpose of serving drinks and food.
  • For on-premises consumption, capacity must be limited to 50% of normal operation to allow for adequate group spacing.
  • If customers are waiting in lines, individuals not of the same household should remain physically distanced.
    • If in waiting areas, adequate physical distancing cannot be maintained, they must be closed to customers.
  • Tables must be limited to six people per table (except gaming machines, which are limited to one).
  • There must be 6 feet of physical distancing between groups or tables by:
    • Increasing table spacing, removing tables, or marking tables as closed;
    • Providing for a physical barrier between tables; or
    • Back-to-back booth seating that provides adequate separation.
  • Sitting or standing at bars or counters is not allowed.
  • Drinks and food must be served to customers at a table.
  • Breweries, wineries, and distilleries will close at regular sample room closure timesand not reopen before regular sample room opening time the following day.
    • No deliveries may occur outside of sample room hours.
  • Bars, restaurants, wineries, and casinos with all-beverage or beer licenses will close by 11:30 p.m.with all customers out by then and will not reopen before 8:00 a.m. the following day.
    • No deliveries may occur between 11:30 p.m. and 8:00 a.m.
  • Restaurants with a restaurant beer and wine license will close by 11:00 p.m. with all customers out by the closure timeand will not reopen before 11:00 a.m. the following day.
    • No deliveries may occur between 11:00 p.m. and 11:00 a.m.
  • All licensees must follow all laws pertaining to the Responsible Alcohol Sales and Service Act (16-4-10, MCA).

All licensees may:

  • Take orders and payments on the phone or computer.
  • Deliver alcoholic beverages off the licensed premises, including to a parking lot or curb, before closing time. Such delivery must be made by an employee of the licensee over the age of 21.
  • Sell alcohol through a drive-up window.
  • Sell for off-premises consumption prior to closing time.
    • All-beverage and beer licensees must:
    • Sell alcoholic beverages in original packaging* for delivery, curbside, drive-up or take-out. This includes growlers with beer and table wine.
    • Sell alcoholic beverages in individual servings** for take-out ONLY and the buyer assumes liability of local or state regulations regarding open container laws.
  • Breweries must only sell in original packaging*, including growlers with beeror individual servings** if they meet the consumption guidelines***.
  • Wineries must only sell in original packaging*, including growlers with wine or individual servings** if they meet the consumption guidelines***.
  • Distilleries must:
    • Only sell up to 1.75 liters per person per day.
    • Only sell in original packaging* or individual servings** if they meet the consumption guidelines***.
  • Restaurant Beer and Wine licensees (RBW/Cabaret) must:
    • Only sell in original packaging* or individual servings** if they meet the consumption guidelines***.
    • Only sell beer and wine to a patron who orders food and have that beer and wine stated on the food bill.
  • Off-premises licensees and agency liquor stores must only sell in original packaging*.

No license type or agency liquor store is allowed to:

  • Sell to a person under 21 years of age or to any person actually, apparently, or obviously intoxicated.
  • Have a third-party service such as Grubhuborder, pickup, and/or deliver alcohol.
  • Canvass for or solicit orders for the purchase of alcohol. Customers must initiate the sale of alcohol either on the phone, in person, or online.  Normal rules of advertising apply.

Beer wholesalers and table wine distributors are allowed to:

  • Coordinate with retail licensees for pickup of alcoholic beverages and with agency liquor stores for pickup of table wine for any quantity of product that is agreed upon.
  • Extend more than 7 days credit to a retailer as long as the same arrangement is offered to all retailers.

* Original packaging means the sealed container in which a manufacturer packages its product for retail sale. It includes bottles, cans, kegs, and growlers, but does not include lines or piping carrying product from a manufacturer’s premises to a retailer’s premises.

** Individual serving means not more than 16 ounces of beer, not more than 2 ounces of liquor, not more than 7 ounces of wine, or a proportional combination thereof (for example, 1 ounce of liquor mixed with 8 ounces of beer).

*** Consumption guidelines means all-beverage licensees, on-premises beer licensees, restaurant beer and wine licensees, breweries, wineries, and distilleries may serve alcohol in individual servings for consumption off-premises if the consumption occurs in an area adjacent to the licensee’s approved premise and the licensee has received written approval from the governing local government.  The written approval must be retained at their place of business. For breweries and distilleries individual servings are restricted to the sample room limits for the combined on-premise and off-premise consumption.  This provision does not restrict off-premises sales made by on-premises retailers or manufacturers that are otherwise authorized by Montana law.​

Fingerprint cards

Normally, two sets of fingerprint cards per person are required to be submitted to the Department with several types of applications. As an accommodation for our customers that cannot get fingerprints taken during this time, the ABCD/GCD will temporarily waive the requirement for fingerprint cards and will do a name-based background check to determine suitability until fingerprints can be obtained.

This applies to applications for:

  • New location managers.
  • Non-institutional loans.
  • New officers/directors.
  • Alcohol and/or gambling licenses.

The following information will continue to be required:

  • Personal/criminal history statement (Form 10 or Form 10A).
  • Any other form or document normally required with a submission.

While fingerprint cards will not be required for current submissions, they will be required at a later date

  • ABCD/GCD will follow up with a request once normal operations have resumed.
  • Upon request, two sets of fingerprint cards for each person must be submitted within 30 days along with the $30 processing fee per person.

Financing

As a reminder, institutional loans (bank loans) do not require prior approval. Notification that a licensee has obtained a bank loan is only required with the license renewal submission.

Non-institutional loans (non-bank loans) must have prior approval.

In order to speed up the review process, please follow these guidelines:

Submit Online!

Log into the TransAction Portal and submit your request or send documents to Stacy Rogstad (srogstad@mt.gov) via the ePass Montana File Transfer Service.

Fax or mail may not be processed as quickly as online submissions.

  • Supply all required documents. Before ABCD/GCD can conduct their review, an application must be complete. The following are required:
    • Non-institutional loan (Form 13).
      • Personal/criminal history statement (Form 10 or Form 10A) for each person providing funding.
    • Loan agreement and/or promissory note.
    • Amortization schedule and/or other applicable contracts or documents.
    • Source of funding for the loan (e.g., 6 months of bank statements).
    • As noted in the above section, the requirements for fingerprint cards will temporarily be waived.
  • Financing application submissions will be given priority during this time and will be processed as quickly as possible.
  • As an accommodation during this time, ABCD/GCD will allow debt holders (landlords, lenders, etc.) to provide temporary reprieve from payments normally required by law and rule. Bone fide emergency loan or lease agreement modifications will not be considered an improper NIL or undisclosed ownership interest.
  • Any agreement between the licensee and the debt holder to defer or forgive payments or change terms must be documented. The documentation should include details of the modification such as:
    • Interest rate adjustment.
    • Monthly payment adjustment.
    • Monthly payment “holidays” or forgiveness.
    • Change in loan terms.
    • Timeframe for the modification (e.g., temporary or through the term).
    • Other accommodations.
  • Documents should be submitted to the Department no later than with the licensee’s annual license renewal application, due June 30.

Key personnel changes

The license renewal form (due June 30) requires disclosure of any changes to mangers, officers, or directors. Please ensure all changes are reported at that time (or before).

Alterations to licensed premises

On premises retailers and manufacturers may want to alter their licensed premises to add additional outdoor space.  As an accommodation during this time:

  • You may work with your local officials to get their approvals prior to applying with the Department.
  • Work with the Department to update your floorplan.
    • If you can’t immediately meet suitability but have local official approval, the Department will grant temporary approval and will work with you to meet suitability and gain full approval.

Adequate cleaning and distancing must be maintained in outdoor space as well.

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