Montana is one of the few states that does not impose a state sales tax. However, it does levy other business taxes, including withholding tax, lodging tax, and alcoholic beverage tax. Additionally, some local resort communities impose their own local option sales taxes.
The lack of a sales tax can provide significant competitive advantages for businesses located in the Treasure State. For example, companies can offer lower prices because they don’t have to include a hidden sales tax in their pricing. This also allows residents to keep more of their take-home pay.
While the MT DOR does not collect sales tax, it does administer other state business taxes such as mineral royalty withholding, corporate income, and estate and trust tax. You can contact a tax professional to explore relief options if you have unpaid state business taxes. These professionals can also help you file your returns and make payments to the MT DOR.
Montana Business Taxes
Montana does not impose a general sales tax, but businesses are still responsible for taxes on products, services, and business activities. Local governments may levy additional taxes, and businesses should consult with a tax professional to understand their responsibilities and potential liabilities.
Groceries and prescription drugs are exempt from sales tax in Montana, which helps families afford vital goods. In addition, the state has a special exemption for medical equipment and supplies. However, this exemption is limited to communities that meet certain requirements established in Montana code.
Businesses that sell in multiple states should use Stripe’s Thresholds feature to monitor their compliance with sales tax regulations. This tool helps them stay ahead of changing laws and avoid unnecessary penalties. It also provides insights about when a business should register for sales tax in other locations. Individuals and businesses that make purchases from out-of-state sellers or when sales tax has not been collected should file a Montana use tax return to fulfill their obligations.
Montana Taxes Due Dates
If your business has taxable sales in Great Falls, you must file quarterly estimated tax returns through the TAP system. These returns are due on April 15, June, September, and January. You can find more information on filing and paying these taxes by reading the Department of Revenue’s tax form instructions. You must also maintain detailed records of each taxable sale.