Lodging accommodations collect and remit lodging facility sales and use taxes.

Lodging accommodations include:

• Hotels
• Motels
• Campgrounds
• Resorts
• Dormitories
• Condominium Inn
• Dude ranches
• Guest ranches
• Hostel
• Public Lodging House
• Bed and breakfasts
• Vacation rentals (home, apartment, timeshare, room, or rooms)
• Online hosting platforms and short-term rental marketplaces

Taxes

Montana charges a combined 8% lodging facility sales and use tax:

Use Tax	4%
Sales Tax	4%
Total Sales and Use Tax	8%

The tax applies to the total amount paid by the purchaser for which the sales of accommodations are provided. The tax is not applied to charges for meals, transportation, entertainment or similar separately stated charges that are specifically excluded from what the purchaser must pay to facilitate the sale of accommodations.

Some charges are exempt from collecting the Lodging Facility Sales and Use Tax, such as:

• Units or spaces rented 30 continuous days or more to the same purchaser,
• Some federal employees may have a credit card which is billed directly to the federal government. These are specific GSA SmartPay cards. Please use the Lodging Tax Exempt Form to record these exemptions. (Other possible lodging tax exemptions are described in the Lodging Tax Exempt Form) 

A seller filing and paying the lodging facility sales and use taxes on time is allowed a 5% vendor allowance against the 4% lodging sales tax. There is no vendor allowance for the 4% lodging facility use tax.

Each lodging accommodation required to collect and remit the taxes must apply for a seller's permit before doing business.

Reporting and Payment Options

TransAction Portal (TAP)

You may register for a new lodging account using our TransAction Portal (TAP). You may also file and pay through TAP.

The Department of Revenue has a collection of tutorials for TAP available on our website. 

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 Taxes are subject to uniform penalties and interest.

Revenue Distribution

The Lodging Sales Tax and Lodging Facility Use Tax distribution can be found at 15-65-121, MCA and 15-68-820 MCA.

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Senate Bill 52, includes changes to the seller of accommodations and who is ultimately responsible for the collection and payment of the Lodging Facility Use Tax and Sales Tax.

This bill requires short-term rental marketplaces to register and collect, report, and pay taxes on any sale facilitated by the short-term rental marketplace.

In addition, online hosting platforms, which include online travel companies or third-party reservation intermediaries, are required to collect and report the taxes as a seller of accommodations in Montana. The short-term rental marketplace and online hosting platforms should now be collecting, reporting, and paying all taxes from sales through their online hosting platform.

We do encourage anyone who has accommodations in Montana to contact their short-term rental marketplace or online hosting platform if there are questions on the tax collection, reporting, and payment, if their applicable contract or correspondence do not include a reference. The department is available to answer any questions as SB 52 becomes effective. Please contact us at the Montana Department of Revenue with any questions at 406-444-6900.

For more information, please review our Lodging Facility Sales and Use Tax Guide.