Montana Code 7-6-1503. Limit on resort tax rate — goods and services subject to tax
7-6-1503. Limit on resort tax rate — goods and services subject to tax. (1) (a) Except as provided in subsection (1)(b), the rate of the resort tax must be established by the election petition or resolution provided for in 7-6-1504, but the rate may not exceed 3%.
Terms Used In Montana Code 7-6-1503
- Infrastructure: means tangible facilities and assets related to water, sewer, wastewater treatment, storm water, solid waste and utilities systems, fire protection, ambulance and law enforcement, roads, bridges, and other transportation needs. See Montana Code 7-6-1501
- Luxuries: means any gift item, luxury item, or other item normally sold to the public or to transient visitors or tourists. See Montana Code 7-6-1501
- Resort community: means a community that:
(a)is an incorporated municipality;
(b)has a population of less than 5,500 according to the most recent federal census;
(c)derives more than 50% of its economic well-being related to current employment from businesses catering to the recreational and personal needs of persons traveling to or through the municipality for purposes not related to their income production and excluding economic activity from health care, schools, government, and other services that primarily benefit residents; and
(d)has been designated by the department of commerce as a resort community not more than 2 years before the petition of the electors or resolution of the governing body. See Montana Code 7-6-1501
(b)(i) Subject to subsection (1)(b)(ii), an election petition or resolution provided for in 7-6-1504 may provide for an additional resort tax levy at the rate of up to 1%. The revenue from the additional tax must be used to provide funding for infrastructure.
(ii)A resort community with a population that exceeds the population limit for a resort community in 7-6-1501 may not levy the additional resort tax provided for in subsection (1)(b)(i).
(2)(a) The resort tax is a tax on the retail value of all goods and services sold, except for goods and services sold for resale, within the resort community or area by the following establishments:
(i)hotels, motels, and other lodging or camping facilities;
(ii)restaurants, fast food stores, and other food service establishments;
(iii)taverns, bars, night clubs, lounges, and other public establishments that serve beer, wine, liquor, or other alcoholic beverages by the drink; and
(iv)destination ski resorts and other destination recreational facilities.
(b)Establishments that sell luxuries shall collect a tax on such luxuries.