15-30-2106. (Effective January 1, 2024) Nonresident compensation — exclusion. (1) Except as provided in subsection (2), compensation subject to withholding pursuant to Title 15, chapter 30, part 25, without regard to 15-30-2513, that is received by a nonresident for employment duties performed in this state, is excluded from Montana source income if:

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

(a)the nonresident performed employment duties in more than one state during the year; and

(b)the nonresident is present in this state to perform employment duties for not more than 30 days during the tax year in which the compensation is received, where presence in this state for any part of a day constitutes presence for that day unless the presence is purely for purposes of transit through the state.

(2)This section does not apply to compensation received by a person:

(a)who is a professional athlete or member of a professional athletic team;

(b)who is a professional entertainer who performs services in the professional performing arts;

(c)of prominence who performs services for compensation on a per-event basis;

(d)who receives lottery winnings on a lottery ticket purchased in Montana;

(e)who performs construction services to improve real property, predominantly on construction sites, as a laborer;

(f)who is a key employee for the year immediately preceding the current tax year; or

(g)who is a qualified production employee.

(3)This section does not prevent the operation, renewal, or initiation of any agreement with the taxing authorities of states contiguous to this state pursuant to 15-30-2621.

(4)This section creates an exclusion from nonresident compensation under certain de minimis circumstances and has no application to this state’s jurisdiction to impose a tax under this chapter or any other tax imposed in this state on a taxpayer;

(5)For the purpose of this section, the following definitions apply:

(a)”Key employee” means an individual who, for the year immediately preceding the current tax year, had annual compensation from the employer of greater than $500,000.

(b)”Qualified production employee” means a person who performs production services of any nature:

(i)directly in connection with a qualified production activity, as that term is defined under 15-31-1003; and

(ii)for compensation, provided the compensation paid to the person qualifies as compensation under 15-31-1003.

(c)”State of residence” means the 50 states of the United States, the District of Columbia, and any territory or possession of the United States.