Businesses Purchasing Goods for Resale
If you are a Montana business and need to send a resale certificate to your vendor, you may use the Montana Business Registry Resale Certificate.
Don’t file this form with us.
Give the completed form to your out-of-state vendor when you make a purchase. The vendor may accept this certificate as a substitute “resale certificate” and exempt the transaction from the state’s sales, use, or transaction tax, but they are not required to accept it.
Some states, including Washington, may require you to use their state-specific form or provide additional information.
Montana Residents Shopping in Another State
If you’re a Montana resident working or shopping in a state with a sales tax, and want to know about that state’s rules for exempting nonresidents from the tax, contact that state’s Department of Revenue.
You cannot claim another state’s sales tax on your Montana income tax return.
The Wayfair Decision and Online Sales Tax
On June 21, 2018, the US Supreme Court ruled a state may collect sales tax from taxpayers located outside the state if they are selling to state residents and there is a sufficient connection between the taxpayer and the state. For example, under the South Dakota law, a company must collect sales tax for online retail sales if
- the company’s gross sales exceed $100,000, or
- the company conducted more than 200 transactions to South Dakota.
Impacts to Montanans Shopping Online
The Wayfair decision does not affect Montanans purchasing goods or services online because Montana does not have a general sales tax.
Montanans do not generally owe sales tax to another state, but exceptions may exist for other taxes.
For example, when making online travel arrangements, you will be charged federal taxes on airline tickets and may be charged state and local taxes on your hotel or rental car.
Impacts to Montana Businesses Selling Products Online
Montana businesses selling online products to buyers in a state, such as South Dakota, that requires online retailers to collect sales tax will need to collect and pay those sales taxes.
If you are an online retailer, please seek competent legal advice on how to proceed with collecting and remitting sales tax for sales tax states such as South Dakota.