Generally, the state of Montana does not impose sales and use tax on purchases of tangible personal property.
However, effective 2003 Montana legislated a transaction tax on lodging/accommodations, vehicle rentals and telecommunications services.
The rate of tax imposed on these services is as follows:
- Lodging/accommodations – 3%
- Vehicle rentals – 4%
- Telecommunications (Excise Tax) – 3.75%
Some local jurisdictions impose resort taxes on sales of tangible personal property and services (including restaurant sales and lodgings).
Since publishing this blog series, we have seen three states that don’t impose a traditional sales or use tax (Alaska, Delaware and now Montana). Since the EYE ON blogs are delivered in alphabetical order, there remain two additional states that we will review later that don’t have a traditional sales or use tax.
Stay tuned for more of Jeff's EYE ON series as he blogs aboout sales and use tax State by State.