(1) 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.

(2) A user of a lodging unit at a dormitory is not required to pay the lodging facility sales and use tax when the:

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

(b) 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

(c) Participant is in an educational program reserved exclusively for students of accredited educational institutions.

(3) A user of a lodging unit at a hotel, motel, hostel, public lodginghouse, or bed and breakfast facility whose average daily accommodation charge (ADAC) is less than or equal to 60 percent of the allowable state reimbursement per day is not required to pay the lodging facility sales and use tax.

(a) For example - A facility that has 40 units advertises the following rates:

(i) 10 units, with one king bed, rent for:

$25.00 per night for single occupancy (one person);

$38.00 per night for double occupancy (two people);

$150.00 weekly rate; and

$400.00 monthly rate;

(ii) 30 units, with two queen beds, rent for:

$20.00 per night for single occupancy (one person);

$28.00 per night for double occupancy (two people);

$150.00 weekly rate; and

$400.00 monthly rate;

(iii) ADAC calculation:

10 units rent for $25.00/night = $ 250.00

30 units rent for $20.00/night = $ 600.00

Total rate charged for all rooms = $ 850.00

divided by number of units 40 = $ 21.25 ADAC

(iv) Allowable state reimbursement $ 35.00

7 percent Lodging Facility Sales and Use Tax $ 2.45

Total $ 37.45

60 percent of allowable state reimbursement $ 22.45

(b) The ADAC rate of $21.25 is less than $22.45 (60 percent of the allowable state reimbursement rate), therefore the facility is exempt from collecting the lodging facility sales and use tax from the user.

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

(5) The user 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.