Miscellaneous Taxes and Fees
Consumer Counsel Fee
Back to MenuAll companies providing services which are regulated by the Public Service Commission are subject to a quarterly fee on gross operating revenue generated by all regulated activities within Montana. This fee is set annually and applies to the fiscal year period October 1 through September 30. All revenues are deposited to a state special revenue fund and used to cover appropriations to the office of consumer counsel. (69-1-201 through 69-1-230, MCA: 43.31.902, ARM)
Emergency Telephone 911 Service Fee
Back to MenuA fee of $1.00 per month per access line on each service subscriber in the state is imposed on the amount charged for telephone exchange access services. The fee does not apply to a service subscriber that the state is prohibited from taxing, such as the federal government, tribal governments, and enrolled members of an Indian tribe who reside on their own reservation. All revenues are deposited to a state special revenue fund for the development of emergency 911 systems in the state. (MCA 10-4-201 through 10-4-212, MCA; 43.31.401 through 43.31.405, ARM)
Hospital Facility Utilization Fee
Back to MenuHospitals in Montana pay to a utilization fee for each inpatient bed day in the amount of:
- $43.00 for the period January 1, 2008 through December 31, 2008
- $48.00 for the period January 1, 2009 through December 31, 2009
- $50.00 beginning January 1, 2010
An "Inpatient bed day" is a day of inpatient care provided to a patient in a hospital. Inpatient bed days include all inpatient hospital benefit days as defined for Medicare reporting purposes in section 216 of the Centers for Medicaid and Medicare Services Publication 10. Inpatient bed days also include all nursery days during which a newborn infant receives care in a nursery. The term does not include observation days or days of care in a swing bed, as defined in Section 50-5-101, MCA. The information return and payment for the hospital utilization fee is due to the Department of Revenue on or before the last day of the month following the calendar year. All revenues are deposited to a state special revenue fund for use by the Department of Public Health and Human Services. (15-66-101 through 15-66-209, MCA: 42.31.1002, ARM).
Intermediate Care Facility Utilization Fee
Back to MenuIntermediate care facilities in Montana pay a utilization fee based on quarterly revenues and resident bed days. This fee is 6% of the intermediate care facility's quarterly revenue divided by the resident bed days.
An intermediate care facility is a facility for the developmentally disabled or a facility for the mentally handicapped that is in compliance with federal standards. A resident bed day is a 24-hour period that a resident is present in the facility and receiving care, or in which a bed is held for a resident while the resident is on temporary leave from the facility.
30% of the fees collected are deposited to the general fund, and 70% is deposited to a state special revenue fund for use by the Department of Public Health and Human Services. (15-67-101 through 16-67-209, MCA)
Lodging Facility Sales Tax and Use Tax
Back to MenuThere are two taxes imposed on users of an overnight lodging facility (such as a hotel, motel, campground dude ranch, and guest ranch, which are collected by the facility and remitted to the Department of Revenue. These two taxes are a 4% lodging facility use tax, and a 3% lodging facility sales tax, for a combined 7% lodging facility sales and use tax.
The tax applies to charges paid for the use of the facility for lodging, and does not apply to charges for meals, transportation, entertainment or any other similar charge. In addition, the tax does not apply to a hotel, motel or bed and breakfast facility whose average daily accommodation charge for a single person is $22.47 or less, for a facility or unit that is rented by the same user for a period of 30 consecutive days or more, or lodging paid directly by the federal government.
A facility that files and pays the lodging facility sales and use tax timely is allowed a 5% vendor allowance against the 3% lodging facility sales tax, not to exceed $1,000 per quarter. There is no vendor allowance allowed against the 4% lodging facility use tax. In addition, each facility that is required to collect and remit the 3% sales tax is required to apply to the Department of Revenue for a seller's permit before they engage in business.
Revenues collected from the 4% lodging facility use tax are deposited to a state special revenue fund and is used by the Department of Commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials. Revenues collected from the 3% lodging facility sales tax are deposited to the General Fund.
4% Lodging Facility Use Tax: 15-65-101 through 15-65-131, MCA; 42.14.101 through 42.14.112, ARM
3% Lodging Facility Sales Tax: 15-68-101 through 15-68-820, MCA
Nursing Facility Utilization Fee
Back to MenuNursing facilities in Montana pay a utilization fee of $8.30 for each occupied bed day. $2.80 of the fee is deposited to the General Fund with $5.50 deposited to a state special revenue fund. ( 15-60-101 through 15-60-211, MCA; 42.31.802 through 42.31.810, ARM)
Public Contractor's Gross Receipts Tax
Back to MenuPrime contractors and all levels of subcontractors are required to pay a 1% public contractor's gross receipts fee on all public contracts over $5,000. Contractors can obtain part or all of this fee back by requesting a refund for personal property taxes and certain fees paid on assets used in their contracting business and by claiming a credit on their Montana individual income tax return or Corporation License Tax return. All revenues are deposited to the General Fund. (15-50-101 through 15-50-311, MCA; 42-31.2101 through 42.31.2143, ARM)
Public Service Regulation Fee
Back to MenuAll companies providing services, which are regulated by the Public Service Commission, are subject to a quarterly tax on gross revenues excluding revenues from sales to other regulated companies for resale. The tax rate is set annually for the succeeding fiscal year. All collections are deposited in a state special revenue fund. (MCA 69-1-402)
Rental Vehicle Sales Tax
Back to MenuThere is a 4% rental vehicle sales tax imposed on the purchaser, which is collected by the seller and remitted to the Department of Revenue.
- Automobiles (including vans, sport utility vehicles, or trucks having a capacity of 1 ton or less)
- Motorcycles
- Motor-driven cycles (meaning motorcycles or scooters with a motor
that
produces 5 horsepower or less) - Quadricycles (a four-wheeled motor vehicle, designed for on-road or
off-road
use, that has a motor that produces 50 horsepower or less) - Motorboats (including a canoe, kayak, personal watercraft, rubber raft
or
pontoon, propelled by any motor or engine of any description) - Sailboats (any vessel that uses a sail and wind as its primary source
of
propulsion) - Off-highway vehicles (including motorcycles, quadricycles, dune
buggies,
amphibious vehicles, deriving power from any source other than muscle or wind) - Any truck, trailer or semi-trailer with a gross vehicle weight of less
than 22,000
pounds used to transport personal property
Farm vehicles, machinery, equipment, travel trailers, motor homes, airplanes, snowmobiles, golf carts, and sail boards are not subject to the tax.
The tax does not apply to a vehicle rented to the federal government, or any agency or instrumentality of the federal government if the sale is billed directly to and paid directly by the federal government. However, sales to a state, county, or local government are subject to the rental vehicle tax.
The rental vehicle sales tax applies when the vehicle is:
- rented for a period not exceeding 30 days
- rented without a driver, pilot, or operator
- designed to transport 15 or fewer passengers
- rented pursuant to a contract for insurance
- rented pursuant to a warranty contract
Base rental charges include:
- charges for time of use of the rental
- charges for mileage
- charges for personal accident insurance
- charges for additional drivers or underage drivers
- charges for accessory equipment (child safety seats, luggage racks, etc.)
Base rental charges do not include:
- vehicle discounts
- fees imposed to operate at an airport terminal
- motor fuel
- intercity vehicle drop charges
- any taxes imposed by federal, state and local governments
A vendor that files and pays the rental vehicle sales tax timely is allowed a 5% vendor allowance, not to exceed $1,000 per quarter. In addition, each vendor that is required to collect and remit the 4% rental vehicle sales tax must apply to the Department of Revenue for a seller's permit before they can engage in business.
All revenues are deposited to the General Fund. (15-68-101 through 15-68-820, MCA)
Resort Tax
Back to MenuA resort tax is collected in certain Montana communities with populations under 5,500 who meet specific resort qualifications. The resort tax is a local option sales tax on the retail value of goods and services sold by lodging and camping facilities; restaurants and other food service establishments; public establishments that serve alcoholic beverages by the drink; destination recreational facilities; and establishments that sell luxuries. The rate is set locally and cannot exceed 3%. Local government administers the tax. (7-61501 through 7-6-1550, MCA)
Retail Telecommunication Excise Tax
Back to MenuAn excise tax of 3.75% is imposed on the purchaser and collected by the telecommunications service provider on the sales price of retail telecommunications services. Retail telecommunications includes the two-way transmission of voice, image, data, or other information that originates or terminates in Montana that is charged to a Montana service address. In addition, Montana has adopted the Federal Mobile Telecommunications Sourcing Act and sourcing rules for specific land line mobile telecommunications services. (15-53-128 through 15-53-156, MCA; 42.31.501 through 42.31.507, ARM)
TDD Telecommunications Service Fee
Back to MenuA fee of $.10 per month per access line on each service subscriber in the state is imposed on the amount charged for telephone exchange access services. The fee does not apply to a service subscriber that the state is prohibited from taxing, such as the federal government, tribal governments, and enrolled members of an Indian tribe who reside on their own reservation. All revenues are deposited to a state special revenue fund for the physically disabled that are unable to use traditional telecommunications equipment. This special revenue fund is used to provide telecommunications devices for the deaf (TDD). (53-19-301 through 53-19-319, MCA).
Universal System Benefit Program
Back to MenuThe Universal System Benefits Program provides funding for low income energy assistance, weatherization, energy efficiency activities, and development of renewable energy resources. Public Utilities and large customers are required to submit annual summary reports of their USB program activities. (69-8-402, MCA and 69-8-414, MCA)
Wholesale Energy Transaction Tax
Back to MenuA wholesale energy transaction tax of $0.015 per kilowatt hour of electricity transmitted by a transmission service provider is imposed on electricity transmitted in Montana. The tax is collected by a transmission services provider from an electrical generation facility or a distribution service provider and remitted to the Department of Revenue by the transmission services provider who controls or operates a facility used for the transmission of electricity. All revenues are deposited to the General Fund. (15-72-101 through 15-72-117, MCA)
