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Sales Tax – Montana ~2007 is a Sample of one State, all 50 States are included in the Platinum Program

The following information has been gathered from the Montana Department of Revenue web site at http://mt.gov/revenue/.

What Is the Sales & Use Tax?

 The State of Montana has no general sales or use tax.

Are There Additional Taxes?  

All companies providing services that 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)

The Retail Telecommunications Excise Tax carries a rate of 3.75%. This is a tax on retail sales of telecommunications services.

Prime contractors and all levels of subcontractors must pay a tax amounting to 1% of all public contracts over $5,000. Contractors can obtain part or all of the tax back by requesting refunds for personal property taxes paid on assets used in their contracting business and by claiming credit on their individual Montana income tax return or Montana Corporation License Tax return. Revenues are deposited to the credit of the General Fund. (MCA 15-50-101)

Two taxes are imposed on users of overnight lodging facilities (such as hotels, motels or campground facilities).  The Lodging Facility Use Tax is 4% of the lodging charge and is collected by the owner or operator of the facility. A 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.

There is a 4% sales tax on the base rental charge of rental vehicles. The tax is imposed on the purchaser and collected by the vendor.

What Sales Are Taxable?

Since there is no sales or use tax, taxable sales vary. See Additional Taxes for a listing of some of the taxes that may apply.

Who Must Register for a Sales Tax License?

The State of Montana does not have a general business license. However, some businesses are required to register and be licensed by the state. The license requirement depends on the type of business entity. If a business is required to be licensed, the license number can be used as proof of business when ordering supplies.  Contact the Montana Department of Revenue for a listing of businesses required to obtain a general business license.

What Other Licenses Do I Need and Where Do I Get Them?

·          Food Purveyor License

·          Tobacco Retail and Wholesale Licenses

·          Off-Premise Beer & Wine License (Liquor)

·          Nursery License

·          Underground Storage Tanks

·          Petroleum Dealers License (Meters)

·          Weighing Device License (Scales)

Applying for a new license under the One-Stop Licensing process is simple and convenient. A business may apply for one or more licenses by completing a single copy of the One-Stop Licensing Master Application and supplemental forms.

·          Call One-Stop Licensing at 406-444-6900 to request a One-Stop Licensing Booklet be mailed; or

·          Fax an application request to One-Stop Licensing at 406-444-0722.; or

·          Pick up a One-Stop Licensing Booklet in the Sam W. Mitchell Building, 3rd floor, 125 N. Roberts, Helena; or

·          Go to mt.gov/revenue/formsandresources/forms.asp”\”onestop” to download the One-Stop Licensing Booklet and all related forms.

Instructions are included in the One-Stop Licensing Booklet, but assistance is also provided by calling 406-444-6900.  The completed application and supplemental forms, including appropriate payment, should be mailed to One-Stop Licensing, MT Department of Revenue, P.O. Box 8003, Helena, MT 59604-8003.  Or the material can be delivered to the Sam W. Mitchell Building, 3rd floor, 125 N. Roberts, Helena. Under One-Stop Licensing, an application for a new license requires an original signature. For this reason, applications may not be submitted by fax or completed by telephone.

What Are Common Exemptions?

Exemptions do not apply since there is no sales tax.

There are certain kinds of services and compensation specifically excluded by law for withholding tax purposes. Refer to the State Employment Tax Chart in the downloadable forms section of the Montana DOR website for a list of exemptions.

How Do I Obtain Exemption Certificates?

Because there is no general sales tax, the state does not provide a sales tax exemption number. Vendors are often asked for their sales tax exemption number when ordering products from manufacturers or out-of-state wholesalers. Since Montana does not provide a sales tax exemption number, the state suggests using a number that is unique to your business, such as the Federal Identification Number (FEIN).

Filing

Business Tax Express  at https://app.mt.gov/bustax/ is a free electronic program for filing and/or debit payment of withholding tax, lodging facility tax, rental vehicle tax and payments only for oil and gas production tax, cigarette tax, corporation license tax, and liquor stores.

Payment can also be submitted using the credit card option. A small fee applies to the credit card payment option.

Online Resources

Forms: http://mt.gov/revenue/formsandresources/forms.asp

eFiling: http://mt.gov/revenue/forbusinesses/electronicfiling/efileforbusiness.asp

Business Montana: http://www.bizmt.com/

Miscellaneous Information 

Start a Business Checklist:

Montana Department of Revenue
Customer Service Center
P.O. Box 5805
Helena, MT 59604-5805
406-444-6900

Assistance For Business Clinics

The Department of Revenue, in conjunction with the Internal Revenue Service and various state government agencies, offers Assistance for Business Clinics (ABC's) at 13 locations statewide. These clinics are designed to assist new and existing employers and cover many employer-related topics such as tax filing obligations.

For current schedule information:

Go to http://mt.gov/revenue/forbusinesses/2007_Assistance_for_Business_Clinics.pdf or call Customer Service Center at 406-444-6900.

Contact Information

Customer Service Center:                                          406-444-6900

Telephone Device for the Deaf – TDD:     406-444-6900

Department of Revenue addresses:

·          P.O. Box 6308, Helena, MT 59604: Individual income tax returns with payments

·          P.O. Box 6577, Helena, MT 59604: Individual income tax return with refunds

·          P.O. Box 5805, Helena, MT 59604: General mail and correspondence, combined oil and gas tax, unclaimed property 

·          P.O. Box 8021, Helena, MT 59604: Corporation tax returns, partnership returns and all other pass-through entity returns

·          P.O. Box 5835, Helena, MT 59604: Withholding and miscellaneous taxes

·          P.O. Box 6309, Helena, MT 59604: Coupon payments

·          P.O. Box 6169, Helena, MT 59604: County collection reports and state fees

·          P.O. Box 8003, Helena, MT 59604: One-Stop Licensing

·          P.O. Box 8013, Helena, MT 59604: New Hire Reporting

·          P.O. Box 1712, Helena, MT 59604: Liquor Distribution, Human Resources, tobacco tax

·          P.O. Box 8018, Helena, MT 59604: Property Assessment Division

·          P.O. Box 6308, Helena, MT 59604: Garnishments and wage levies

·          P.O. Box 6577, Helena, MT 59604: Tolerance returns

Physical Address:

Sam W. Mitchell Bldg.
125 N. Roberts, 3rd Floor
Helena, Montana
Just east of the Capitol building

Unclaimed Property, Liquor Licensing, Cigarette/Tobacco Taxes and One-Stop Licensing are located at 2517 Airport Road in Helena, Montana.

A listing of all the statewide offices can be found at: http://mt.gov/revenue/abouttheagency/officelocations.asp.