Nexus is a connection between any state, including Montana, and an out-of-state person that gives that state the constitutional right to impose a tax. This right is restricted by the Due Process and Commerce Clauses of the United States Constitution. Public Law 86-272 provides an additional protection from state income tax.

In-State Activities That Create Nexus

Generally, any activity performed in Montana other than the solicitation of sales of tangible goods creates nexus and a filing requirement. The Administrative Rules of Montana Title 42, Chapter 26, Rules 501 through 511 provide specific information about activities that are protected and unprotected from taxation by Public Law 86-272.

If you have read the above information and are still unsure whether your entity has nexus in Montana, then complete and submit our Nexus Questionnaire (Form NEXUS). A Nexus Auditor will review completed questionnaires, and the department will provide a determination.

Becoming Compliant

An entity with nexus in Montana must file tax returns and pay the associated tax due. This includes income tax, but there may be other taxes related to your activities conducted in Montana. Visit our Taxes page for more information.