The following definitions apply to this subchapter:

(1) "Accommodations" means accommodations, as defined in 15-68-101, MCA.

(2) "Gross receipts" means the total gross sales received by a seller for use of accommodations, whether the charges were received in cash, credits, and property or services.

(3) "Lodging facility sales and use tax," for the purpose of these rules, means the lodging facility use tax as it applies to Title 15, chapter 65, MCA, and the sales tax as it applies to Title 15, chapter 68, MCA.

(4) "Nontaxable receipts" means exempt sales, as defined in ARM 42.14.303. Also included are sales deemed by the seller as uncollectible which are written off during a calendar quarter, and any discounts which may have been included in gross receipts but are not part of the taxable sales price to the purchaser.

(5) "Online hosting platform sale" means any sale facilitated through an online hosting platform, as defined in 15-68-101, MCA.

(6) "Outfitting facility" means a facility that furnishes accommodations to guests and offers hunting, fishing, or recreational services in conjunction with the services of an outfitter.

(7) "Purchaser" means a purchaser, as defined in 15-68-101, MCA.

(8) "Rental agreement" means an agreement between a seller and a purchaser. Such an agreement provides accommodations to the purchaser for a specified period of time in exchange for a specified payment amount or other consideration.

(9) "Rental vehicle sales and use tax," for the purpose of these rules, means the sales tax on the base rental charge for rental vehicles as it applies in Title 15, chapter 68, MCA.

(10) "Sale" means sale as defined in 15-68-101, MCA. In the case of online hosting platform sales, a sale for purposes of tax collection obligations occurs at the time the seller collects funds from the purchaser and does not include any transaction occurring between a seller and an online hosting platform.

(11) "Sales price" means sales price, as defined in 15-68-101, MCA.

(12) "Seller" means a seller, as defined in 15-68-101, MCA.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

(1) Every seller required to collect the lodging facility sales and use tax must register with the department by filing a general business registration form available on the department's web site at mtrevenue.gov or through the department's online transaction portal, from which the department will create a lodging facility sales and use tax account identification number for each facility owned or operated in Montana. 

(2) A seller who is registering multiple accommodations locations and who has elected to file a combined lodging facility sales and use tax return may file one registration listing separately each accommodations location. The combined return can only include accommodations that are located:

(a) within the same county; or

(b) within a recognized Convention and Visitors Bureau (CVB).

(3) A seller who is registering multiple accommodations locations must include the following information on each accommodations location:

(a) business name and address of each location; and

(b) the federal employer identification number or social security number assigned to the owner of each location.

(4) A seller who is registering multiple accommodations locations in more than one county or CVB is required to complete a separate application for each county or CVB and include only those accommodations locations within the county or CVB.

(5) A seller who has acquired an existing accommodation from a previous seller shall not use the predecessor's lodging facility sales and use tax account identification number. The seller must file the registration described in (1) to obtain a new lodging facility sales and use tax account identification number upon acquiring the existing business.

(6)  A seller who establishes new accommodations separate from existing accommodations shall not use the existing lodging facility sales and use tax account identification number, except for those sellers listed in (2). The seller must register each accommodations separately and file the registration required in (1) to obtain a new lodging facility sales and use tax account identification number before operating the new accommodations.

(7) When completing the registration required in (1), a seller must provide the federal employer identification number assigned to them by the Internal Revenue Service. Any entity change for a seller that requires a new federal employer identification number requires a new registration.

(8) A registration is not considered complete unless it contains the seller's federal employer identification or social security number.

(9) A seller who fails to register with the department is not relieved from the collection and reporting requirements. 

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been transferred.

This rule has been repealed.

This rule has been repealed.

(1) A seller who is engaged in the business of selling accommodations to the general public and is not open for business all 12 months of a calendar year may apply for a seasonal seller's permit. 

(2) A seller seeking a seasonal seller's permit must also provide in its registration, as required in ARM 42.14.106, that the business is seasonal and list the calendar months the business operates.

(3) If a seller operates at any time within the four, three-month quarters of January through March; April through June; July through September; and October through December, they cannot apply for a seasonal seller's permit.

(a) Example: A seller is operating and is open for business April 15 through October 11 of each year. This seller can apply for a seasonal seller's permit as they operate and are open for business within only three, three-month quarters (April through June; July through September, and the partial month of October.)

(b) Example: A seller is operating and is open for business March 15 through October 11 of each year. This seller cannot apply for a seasonal seller's permit as they operate and are open for business within each of the four, three-month quarters (March 15 through March 31; April through June; July through September; and October through October 11). 

(1) When sales of accommodations are combined with food, beverage, recreation, or other charges which are a substantial portion of the charge, the seller shall collect the lodging facility sales and use tax by establishing a sales price using one of the following options: 

(a) 25 percent of all charges each day for each person; or

(b) a charge justified by reasonable documentation.

(2) As required by 15-65-113, MCA, and 15-68-502, MCA, a seller must maintain and have available for inspection, records to substantiate (1)(a) or (b) for the preceding 5 years. The department may request the seller to itemize each charge to verify the correct amount of tax was collected and paid to the department.

(3) A seller must notify a purchaser of the lodging facility use tax and the lodging facility sales tax at the time of purchase. A seller shall separately state the taxes on the receipt, invoice, or other document provided to a purchaser to ensure there is a record of the amount of tax charged.

(4) Lodging facility sales and use taxes do not apply to separately stated charges or fees unless a purchaser must pay the separately stated charge or fee to facilitate the sale or rental of the accommodations, including a fee or a service, commission, or other charge by any online hosting platform. Examples of separately stated charges not subject to the lodging facility sales and use tax include but are not limited to:

(a) telephone;

(b) Wi-Fi access;

(c) faxes/copies;

(d) television;

(e) food;

(f) beverage;

(g) pet charge; or

(h) personal laundry charges.

(5) The department may disallow a seller's method of allocating the lodging facility sales and use tax under (1) if:

(a) the department has reasonable cause to believe that the method of allocation was chosen solely to qualify the facility for a tax exemption as provided in ARM 42.14.303; or

(b) a charge allocated under (1)(b) is not supported by reasonable documentation or itemization.

(6) Lodging facility sales and use taxes include amounts charged for bathhouse facilities or use of tangible personal property used in conjunction with the room, such as a charge for an extra bed.

(7) If campgrounds charge for water, electrical or sewer hookups, and bathhouse facilities, those charges are included in the amount that is subject to tax.

(8) If the seller charges for electricity or cleaning charges as a separate or additional charge, this charge must be included in the amount that is subject to the tax.

(9) Each seller shall maintain records necessary to document gross receipts for the lodging facility sales and use tax. A seller may be required to substantiate gross receipts reported for a particular quarter. For audit purposes, the seller may be required to provide the department access to, or copies of, data which substantiates the reported gross receipts from the original lodging facility sales and use tax receipts.

(10) Such records shall include specific electronic or physical documentation of exempt charges, including but not limited to sales generated through online hosting platforms and short-term rental marketplace. Documentation for centrally billed federal exemptions shall include the first six digits on each credit card used to pay for the accommodations. Documentation for long-term exempt accommodations may include the folio or similar documentation.

(11) The seller shall maintain the records for a period of five years and shall be subject to audit by the department for that period.

(1) Every seller, except for a seller who has obtained a seasonal permit, is required to complete and file a lodging facility sales and use tax report with the department for each calendar quarter or portion of a calendar quarter they are open for business. The lodging facility sales and use tax report is available through the department's website at mtrevenue.gov or via the department's online transaction portal.

(2) A seller shall remit the amount of the tax due concurrently with filing the lodging facility sales and use tax report described in (1). The report will cover quarterly periods ending March 31, June 30, September 30, and December 31, and is due on or before the last day of the month following the close of the quarter. When filing electronically, the report and payment are considered filed on the confirmation date provided by the online transaction portal.

(3) A seller who has obtained a seasonal permit is required to complete and file a lodging facility sales and use tax report for the calendar quarters they are open for business.

(4) If a seller has no revenue to report for a calendar quarter, and the seller does not have a seasonal permit, the seller must file a lodging facility sales and use tax report but report zero revenue and zero tax due for the calendar quarter. 

(1) Upon request, the late pay and late file penalty may be waived pursuant to ARM 42.2.512, 42.2.513, 42.3.101, 42.3.102, 42.3.103, 42.3.104, 42.3.106, 42.3.108, 42.3.109, 42.3.110, 42.3.111, 42.3.113, 42.3.115, and 42.3.120.

(1) All payments of the lodging facility sales and use tax are applied by the department in the following manner:

(a) When the seller remits full payment of the taxes, one-half of the amount is applied to the lodging facility use tax in Title 15, chapter 65, MCA, and one-half of the amount is applied to the lodging facility sales tax in Title 15, chapter 68, MCA.

(b) When the seller remits less than full payment of the tax, the tax payment is first applied to the lodging facility use tax in Title 15, chapter 65, MCA, with any remaining balance being applied to the lodging facility sales tax.

(2) When a partial payment is made, the vendor allowance only applies to the paid tax balance of the lodging facility sales tax, after the payment is applied to the full amount of the lodging facility use tax due. If there are no funds available to apply to the lodging facility sales tax, the seller is not entitled to a vendor allowance.

(3) If the seller amends a prior period, or the department adjusts a prior period and the seller now owes additional tax, the original payment will be adjusted to first apply all tax to the lodging facility use tax, with any remaining balance to the lodging facility sales tax.

(4) When the department reapplies a payment, the vendor allowance will be adjusted to the timely paid amount that is applied to the lodging facility sales tax. 

This rule has been repealed.

This rule has been repealed.

This rule has been repealed.

(1) The following accommodations are exempt from the lodging facility sales and use tax:

(a) An occupant at a health care facility as that term is defined in 50-5-101, MCA is not required to pay the lodging facility sales and use tax.

(b) A purchaser of accommodations at a dormitory is not required to pay the lodging facility sales and use tax when the:

(i) person is enrolled in a regular academic program or a program of continuing education; or

(ii) participant is in an education program to improve the work of the educational institution by developing the professional knowledge and skills of the employees of the institution hosting the program; or

(iii) participant is in an educational program reserved exclusively for students of accredited educational institutions.

(c) A purchaser of accommodations at a nonprofit or religious organization that is primarily used by youth (under the age of 18) for camping is not required to pay the lodging sales and use tax.

(d) The purchaser of a camping area which is temporarily located pursuant to a permit issued by an agency of the U.S. government is not required to pay the tax. 

(2) The following accommodations sales are exempt from the lodging facility sales and use tax:

(a) accommodations that are rented for a period of 30 consecutive days or more. Nonconsecutive rental agreements may not be combined to calculate a longer rental period. Accommodations rental for a period of 30 or more continuous days must be documented by a lease, contract, or historical evidence of continuous rental.

(b) when the sales price is billed directly to the federal government and paid directly by the federal government. A purchaser who is individually billed and pays for accommodations, and who is subsequently reimbursed by the federal government, is not exempt from paying the lodging facility sales and use tax.

(c) when an enrolled member of a federally recognized Indian tribe stays in accommodations located within the exterior boundaries of the enrolled member's Indian reservation. The seller must record the individual's enrollment number on the record.

(d) when a foreign diplomat, entitled under international law or a bilateral treaty, presents to the seller a tax-exempt card issued by the U.S. State Department as follows:

(i) a blue stripe at the bottom indicates the bearer is entitled to full tax exemption; or

(ii) a yellow stripe indicates there is some type of restriction on the full tax exemption, which will be indicated in the yellow stripe area.

(e) when accommodations are used for a purpose other than lodging, such as a meeting room. 

This rule has been repealed.

This rule has been repealed.

(1) Every seller required to collect the rental vehicle sales and use tax must register the business with the department by filing a general business registration form available on the department's web site at mtrevenue.gov or through the department's online transaction portal, from which the department will create a rental vehicle account identification number for each location operating in Montana.

(2) A seller who has multiple locations or businesses in Montana may file one registration listing each location or business separately.

(3) A seller who has acquired an existing location or business from a previous owner shall not use the predecessor's rental vehicle sales and use tax account identification number.

(4) A seller who establishes a new location or business separate from an existing location or business shall not use the existing rental vehicle sales and use tax account identification number. The seller must register each location or business separately, as described in (1) or (2), as applicable, to obtain a new rental vehicle sales and use tax account identification number before operating the new location or business.

(5) When completing the registration described in (1), a seller must provide the federal employer identification number assigned to them by the Internal Revenue Service. Any entity change for a seller that requires a new federal employer identification number requires a new registration.

(6) A registration described in (1) is not considered complete unless it contains the seller's federal employer identification or social security number.

(7) A seller who fails to register with the department is not relieved from the collection and reporting requirements.

(1) A seller who is engaged in the business of renting motor vehicles to the general public and is not open for business all 12 months of a calendar year may apply for a seasonal seller's permit.

(2) A seller must indicate in its business registration, as required in ARM 42.14.1002, that the business is seasonal and list the calendar months the business operates.

(3) If the seller operates at any time within each of the four, three-month quarters of January through March; April through June; July through September; and October through December, they cannot apply for a seasonal seller's permit.

(a) For example: A seller is operating and opened for business April 15 through October 11 of each year. This seller can apply for a seasonal seller's permit as they operate and are opened for business within only three, three-month quarters (April through June; July through September, and the partial month of October.)

(b) A seller is operating and opened for business March 15 through October 11 of each year. This seller cannot apply for a seasonal seller's permit as they operate and are opened for business within each of the four, three-month quarters (March 15 through March 31, April through June; July through September; and October through October 11.)

This rule has been repealed.

(1) Every seller, except for a seller identified in (2), is required to complete and file with the department a rental vehicle sales and use tax return for each calendar quarter or portion of a calendar quarter the seller is open for business. The rental vehicle sales and use tax return is available through the department's website at mtrevenue.gov or via the department's online transaction portal. A seller shall remit the amount of the tax due concurrently with the rental vehicle sales and use tax return, as required in (1), on or before the last day of the month following the close of a calendar quarter. When filing electronically, the report and payment are considered filed on the confirmation date provided by the online transaction portal.

(2) A seller who has obtained a seasonal permit under ARM 42.14.1003 is required to comply with the requirements of (1) only for the calendar quarters they are open for business.

(3) If a seller has no revenue to report for a calendar quarter, and the seller does not have a seasonal permit, the seller must still comply with the requirements of (1) and (2) but report zero revenue and zero tax due for the quarter. 

(1) A seller doing business in multiple locations may elect to file a combined tax return (Form RVT-C) separately stating each location's gross sales, exemptions, and tax.

(2) Prior to filing a combined return, the seller must request in writing this election to the department. This request must include the complete name, address, and permit number of each location that will be included in the combined return.

(3) Upon authorization by the department, the seller can proceed with filing a combined return.

(4) Once the seller elects to file a combined return and has received authorization from the department, the seller cannot elect to file separate returns for each business location in the future without receiving prior approval from the department.

(5) If a location has no revenue to report for a quarter, the seller must include the location in the combined return reporting zero revenue and tax for the quarter.

(6) The seller must identify quarterly a new location that is included in the return.

(7) The seller must identify quarterly which location is no longer included in the combined return.

(1) The department, for the purpose of determining the correctness of any return, may request additional information to verify amounts or items on the return.

(2) If a return is not filed or information is not supplied, the department will estimate the tax from available information.

(1) A seller shall maintain records necessary to document gross receipts for the rental vehicle sales and use tax. A seller may be required to substantiate gross receipts reported for a particular quarter. For audit purposes, a seller may be required to reconstruct the reported gross receipts from the original rental vehicle sales and use tax receipts.

(2) The records described in (1) must include specific documentation of exempt charges.

(3) A seller must notify a purchaser of the rental vehicle sales and use tax at the time of purchase.

(4) The tax shall be separately stated on the receipt, invoice, or other document provided to a purchaser to ensure there is a record of the amount of tax charged.

(5) The records described in (1) must be maintained by a seller for a period of five years and shall be subject to audit by the department.

(1) Upon request, the late pay or late file penalties may be waived pursuant to ARM 42.3.101 through 42.3.111, 42.3.113, 42.3.115, and 42.3.120.

(1) A purchaser is required to pay the rental vehicle sales and use tax on the sales price for a rental vehicle rented in Montana. This includes, but is not limited to:

(a) automobiles, including vans, sport utility vehicles, or trucks have a capacity of one ton or less;

(b) motorcycles;

(c) motor-driven cycles, which include motorcycles or scooters with a motor that produces five horsepower or less;

(d) quadricycles, including a four-wheeled motor vehicle designed for on-road or off-road use, that has a motor that produces 50 horsepower or less;

(e) motorboats, including a canoe, kayak, personal watercraft, rubber raft or pontoon, propelled by any motor or engine of any description;

(f) sailboats, including any vessel that uses a sail and wind as its primary source of propulsion;

(g) off-highway vehicles, including motorcycles, modified motorcycles including but not limited to those that attach skis or snowmobile tracks, quadricycles, dune buggies, amphibious vehicles, deriving power from any source other than muscle or wind; or

(h) a truck, trailer, or semi-trailer that has a gross vehicle weight of less than 22,000 pounds, used to transport personal property, such as a flatbed trailer used to transport machinery.

(1) A purchaser is not required to pay the rental vehicle sales and use tax on the rental of farm vehicles, machinery, equipment, travel trailers, motor homes, airplanes, snowmobiles, golf carts, or sailboards.

(2) The following rental vehicle sales are exempt from the rental vehicle sales and use tax:

(a) a vehicle that is rented to the same user for a period of 30 consecutive days or more. Nonconsecutive rental agreements cannot be combined for the purpose of determining the length of the rental period. Intention to rent for a period of 30 or more continuous days is documented by a lease, contract, or historical evidence of continuous rental.

(b) when the rental charge is billed directly to the federal government and paid directly by the federal government. A charge that is individually billed and paid by the user, who later is reimbursed by the federal government, is not exempt from the rental vehicle sales and use tax.

(c) when an enrolled member of a federally recognized Indian tribe rents a vehicle within the exterior boundaries of the enrolled member's Indian reservation. The seller must record the individual's enrollment number on the record.

(d) when a foreign diplomat, entitled under international law or a bilateral treaty presents to the seller a tax-exempt card issued by the U.S. State Department as follows:

(i) a blue stripe at the bottom indicates the bearer is entitled to full tax exemption; or

(ii) a yellow stripe indicates there is some type of restriction on the full tax exemption, which will be indicated in the yellow stripe area.