Resort Tax

Businesses and vendors operating within the City Limits selling taxable items under Ordinance No. 952, are also subject to the collection of resort tax. Every entity, subject to the resort tax, that applies for a City business registration must provide a bond in the amount of five hundred dollars ($500.00) payable to the City to ensure its compliance with the City’s resort tax. The bond shall be issued by a surety company licensed to conduct business within the State of Montana. Alternatively, any entity may post five hundred dollars ($500.00) cash or a five hundred dollar ($500.00) irrevocable letter of credit, payable to the City and issued by an FDIC insured financial institution for the same purpose. The bond, cash or letter of credit must remain effective for one (1) full year after the date of the entity’s initial business registration. The City shall not issue a business registration without the entity’s compliance with this section.

The 4% tax collected on gross taxable sales by businesses are to be remitted quarterly and due to the City on or before the TWENTIETH (20th) day of the following months: January, April, July, and October, unless such day falls on a Saturday, Sunday or holiday, then on the next business day.

Due Dates:

Quarter 1 (January, February, March)	Due April 20th
Quarter 2 (April, May, June)	Due July 20th
Quarter 3 (July, August, September)	Due October 20th
Quarter 4 (October, November, December)	Due January 20th

Online Resort Tax Payments

Quarterly Budget Review

Frequently Asked Questions

Are online sales taxable?

The sale takes place where the good is located, therefore, if the good is located in Red Lodge prior to shipping, tax would be collected.

Category: Resort Tax

What are the funds used for?

The tax monies derived from the Resort Tax may be appropriated by the City Council only for those activities, in those proportions, set forth below:

A. Property tax reduction for taxpayers of the City in an amount equal to five percent (5%) of the three percent (3%) Resort Tax revenues derived during the preceding fiscal year.

B. Ninety-five percent (95%) of the three percent (3%) resort tax revenue must be utilized for capital improvements to streets, alleys, water, sewer, stormwater, emergency services, trails, parks, recreational facilities, city beautification, debt repayment and operational and maintenance cost related to streets, alleys, urban forestry, trails, parks, recreational facilities and city beautification expenditures.

C. The 1% (one percent) resort tax shall only be utilized on the infrastructure projects related to stormwater and stormwater related improvements including, but not limited to, stormwater pipes, stormwater detention, curbs, gutters, sidewalks and streets related to stormwater projects.

You can find current and detailed Resort Tax Budget information here: Budget

Category: Resort Tax

What is Resort Tax?

Resort Communities are afforded the ability to collect a special tax called Resort Tax through the approval of the electors.

A "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 the primary portion 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

(d) has been designated by the department of commerce as a resort community.

Category: Resort Tax

What is the 1% Infrastructure Tax?

Effective May 2, 2019, the Montana Legislature enacted SB 241 which allowed for resort communities, through election petition or resolution pursuant to §§ 7-6-1501 , et seq., an additional one percent (1 %) resort tax to provide funding for infrastructure.

On June 2, 2020, the electorate overwhelmingly renewed the three percent (3%) resort tax and the levy of an additional one percent (1%) resort tax dedicated solely to infrastructure.

The one percent (1%) resort tax shall only be utilized on the infrastructure projects related to stormwater and stormwater related improvements including, but not limited to, stormwater pipes, stormwater detention, curbs, gutters, sidewalks and streets related to stormwater projects.

Category: Resort Tax

What is the current rate of tax charged?

The City currently collects a 4% resort tax. The three percent (3%) Resort Tax, as approved by the voters, took effect on July 9, 2020 and the one percent (1%) infrastructure resort tax took effect thirty-five (35) days after approval of the electors, which was July 7, 2020

Category: Resort Tax

What items are taxable?

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:

hotels, motels, and other lodging or camping facilities;
restaurants, fast food stores, and other food service establishments;
taverns, bars, night clubs, lounges, and other public establishments that serve beer, wine, liquor, or other alcoholic beverages by the drink; and
destination ski resorts and other destination recreational facilities.
Establishments that sell luxuries shall collect a tax on such luxuries*.

*"Luxuries" means any gift item, luxury item, or other item normally sold to the public or to transient visitors or tourists. The term does not include food purchased unprepared or unserved, medicine, medical supplies and services, appliances, hardware supplies and tools, or any necessities of life.

Category: Resort Tax