(1) All payments of the 4 percent lodging facility use tax and the 3 percent lodging facility sales tax are applied in the following manner:

(a) When the seller remits full payment of the taxes, 4/7 of the amount is applied to the 4 percent lodging facility use tax in Title 15, chapter 65, MCA, and 3/7 of the amount is applied to the 3 percent 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 4 percent lodging facility use tax in Title 15, chapter 65, MCA, with any remaining balance being applied to the 3 percent lodging facility sales tax.

(2) When a partial payment is made, the 5 percent 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 4 percent tax due. If there are no funds available to apply to the 3 percent 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 4 percent lodging facility use tax, with any remaining balance to the 3 percent lodging facility sales tax.

(4) When reapplying a payment the vendor allowance will be adjusted to 5 percent of the timely paid amount that is applied to the 3 percent lodging facility sales tax.