Montana Department of Revenue

Lodging Facility Sales and Use Tax

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Quick Information

Due Dates

First Quarter
April 30
Second Quarter
July 31
Third Quarter
October 31
Fourth Quarter
January 31

Related Resources

Fees

Current:

Use Tax
4%
Sales Tax
3%

Effective January 1, 2020:

Use Tax
4%
Sales Tax
4%

Short-term lodging facilities collect and remit a lodging facility sales and use tax.

Short-term lodging facilities include facilities such as:

  • Hotels
  • Motels
  • Campgrounds
  • Dude ranches
  • Bed and breakfasts
  • Vacation rentals

Learn more about lodging facility sales and use tax in the Lodging Facility Tax Guide (PDF, 218 KB) or  15-65-101, MCA through 15-65-131, MCA.

You may register for a new lodging account using the Montana Department of Revenue Business Registration (Form GenReg).

Fees

Montana charges a combined 7% lodging sales and use tax:

Use Tax
4%
Sales Tax
3%

Lodging Sales Tax Increase

Governor Steve Bullock signed Lodging Tax Increase Senate Bill 338 into law on May 10, 2019, increasing the lodging sales tax from 3% to 4%.

The tax increase is effective January 1, 2020.

This means any lodging use occurring on or after January 1, 2020 must be charged 8% lodging taxes (4% lodging facility use tax and 4% lodging sales tax), even if the sale occurred before January 1, 2020.

The tax applies to charges paid to use the facility and charges integral to the stay, including roll-away beds and cleaning fees.

The tax does not apply to:

  • Meals, transportation, entertainment, or similar charges if separately stated to a guest
  • Hotels, motels, or bed-and-breakfast facilities with an average daily accommodation charge for a single person of $22.47 or less
  • A facility or unit rented by the same user for 30 consecutive days or more
  • Lodging paid directly by and billed to the federal government (Please see the SmartPay SmartTax Vendor Guide (PDF, 355 KB) for more information.)

A facility filing and paying the lodging facility sales and use tax on time is allowed a 5% vendor allowance against the 3% lodging facility sales tax, up to $1,000 per quarter.

There is no vendor allowance for the 4% lodging facility use tax.

Each facility required to collect and remit the tax must apply for a seller’s permit before doing business.

Third party reservation sellers may only be required to collect and pay the 3% lodging sales tax. Please contact us for filing instructions.

For more information on fees, see the Lodging Facility Tax Guide (PDF, 218 KB).

Reporting and Payment Options

Due Dates

Reports and payments are due on the last day of the month following the calendar quarter:

First Quarter
April 30
Second Quarter
July 31
Third Quarter
October 31
Fourth Quarter
January 31

Penalties and Interest

The Lodging Facility Sales and Use Tax is subject to uniform penalties and interest.

Revenue Distribution

The 3% Lodging Facility Sales tax goes to the state general fund.

The 4% Lodging Facility Use Tax revenue is deposited into several state special revenue funds, the largest of which is used by the Department of Commerce for tourism promotion.

Related Laws