There is no county sale tax for Montana. While Montana has no statewide sales tax, some municipalities and cities (especially large tourist destinations) charge their own local sales taxes on most purchases. If you are a Montana business and need to send a resale certificate to your vendor, you may use the Montana Business Registry Resale Certificate. Montana does not have a general sales, use, or transaction tax. Montana is a state with no sales tax. We understand COVID-19 impacts all aspects of our community. Why? If you have a question about a specific circumstance, email [email protected] or call 406-444-3661. There are additional taxes on tourism-related businesses such … downloaded from the Montana Department of Revenue here. Some states, including Washington, may require you to use their state-specific form or provide additional information. The Montana state sales tax of 0% is applicable statewide. Legally Selling the Vehicle. Montana, however, has a loophole when it comes to no sales tax on RVs. Companies or individuals who wish to make a qualifying purchase tax-free must have a Montana state sales tax exemption certificate, which can be obtained from the Montana Department of Revenue . For example, when making online travel arrangements, you will be charged federal taxes on airline tickets and may be charged state and local taxes on your hotel or … For years, many exotic car buyers have been registering their cars in Montana thanks to a loophole in the law that allows them to avoid paying sales tax. While Montana has no statewide sales tax, some municipalities and cities (especially large tourist destinations) charge their own local sales taxes on most purchases. Montana businesses selling online products to buyers in a state, such as South Dakota, that requires online retailers to collect sales tax will need to collect and pay those sales taxes. The state general sales tax rate of Montana is 0%. New car sales tax OR used car sales tax. Montana (MT) Sales Tax Rates by City. Montana's sales tax rates for commonly exempted items are as follows: Unlike a Value Added Tax (VAT), the Montana sales tax only applies to end consumers of the product. Montana charges no sales tax on purchases made in the state. And Montana law allows for a Montana entity to register vehicles in the state. How 2020 Sales taxes are calculated in Montana. Stimulus payments are being issued by the IRS. In most states, necessities such as groceries, clothes, and drugs are exempted from the sales tax or charged at a lower sales tax rate. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. Montana cars and trucks are exempt from sales tax in Montana (MCA 61-3-311), and if you own your pickup, van or car through a Montana LLC, you can take advantage of permanent registration. Subscribe for Updates on COVID-19’s Impact to the Department of Revenue. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. Montana does not allow local jurisdictions like cities or counties to collect a local sales tax. You cannot claim another state’s sales tax on your Montana income tax return. To circumvent tax dodges, Montana requires that the tagged vehicles be stored in Montana for a “sales-tax test period,” which varies by state. The easiest way to do so is to buy a car in a state with no sales taxes and register the car there. You can make payments online using the TransAction Portal (TAP), or find your payment voucher in My Revenue. The owner of a light vehicle (passenger cars, pickup trucks one-ton and under, vans and sport utility vehicles) may choose one of the following renewal period options, MCA 61-3-311:. There are additional taxes on tourism-related businesses such as hotels and campgrounds (7%) and rental car companies (4%). Montana Business Registry Resale Certificate, COVID-19 Federal Stimulus Payments to Individuals are Tax-Free, Individual Income Tax Deadline Extended to July 15, Public Targeted in COVID-19 Stimulus Scam, How to Reschedule an Individual Income Tax Payment, Paycheck Protection Program (PPP) Tax and Deduction Clarifications, Net Operating Loss Changes Due to COVID-19, Nonuse During COVID-19 Fact Sheet (PDF, 123 KB), Phase 2 Guidelines for Bars and Restaurants, Phase 1 Guidelines for Bars and Restaurants, Temporary Process Modifications Due to COVID-19, Revenue Distribution to Local and Tribal Governments, the company’s gross sales exceed $100,000, or. The Montana state sales tax rate is 0%, and the average MT sales tax after local surtaxes is 0%. For example, under the South Dakota law, a company must collect sales tax for online retail sales if. To lookup the sales tax due on any purchase, use our Montana sales tax calculator. If your vendor refuses to sell to you without a Montana sales tax permit or exemption number, please have them contact us for clarification. Delaware. Montana has no sales or use tax and no vehicle inspections. The cities and counties in Montana also do not charge sales tax on general purchases so the state enjoys tax free shopping. Mihelich said one option is to tax hotel bookings or rental car services. 0.00%. You pay Natrona County, Wyoming sales tax at 5%. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. There are additional taxes on tourism-related businesses such as hotels and campgrounds (7%) and rental car companies (4%). There are five states without sales taxes: Montana, Alaska, Delaware, Oregon and New Hampshire. If you’re a Montana resident working or shopping in a state with a sales tax, and want to know about that state’s rules for exempting nonresidents from the tax, contact that state’s Department of Revenue. As a non-resident of Montana, you may be able to avoid paying sales tax, personal property tax and high licensing fees upon the purchase of your new high-performance car, boat, airplane or RV. Traveling out of state to buy a used car will not save you from paying state sales tax. Exact tax amount may vary for different items. Montana charges a 4% sales and use tax on base rental charges for rental vehicles. Several smaller towns in Montana have used a similarly focused local sales tax for decades. So, an industry has sprung up to assist people from other states who want to take advantage of Montana’s laws while living elsewhere. 15. To see how other agencies have been impacted by COVID-19 go to COVID19.mt.gov. Get the facts before buying or selling a car in Montana. If you need help working with the department or figuring out our audit, appeals, or relief processes, the Taxpayer Advocate can help. Let your Montana LLC buy it! Whenever you make a purchase at a licensed Montana retailer, your sales tax will be automatically calculated and added to your bill. Individuals and companies who are purchasing goods for resale, improvement, or as raw materials can use a Montana Sales Tax Exemption Form to buy these goods tax-free. Avoid sales tax and high licensing fees. When forming an LLC in Montana, it’s a good idea to consider legitimacy. The state in which you live. (15-68-101, MCA) Typically, they register in a Montana county that doesn't have a local-option tax. Here is the pertinent statute: Montana Code Annotated § 61-3-303, entitled “Original registration -- process – fees,” and which provides, in subsection (1), the following: Sales taxes on cars are often hefty, so you may try to avoid paying them. On making an exempt purchase, Exemption Certificate holders may submit a completed Montana Sales Tax Exemption Form to the vendor instead of paying sales tax. If you’re going to buy a Ferrari, Lamborghini, or some other exotic vehicle, you can buy the car or truck of your dreams with a Montana LLC and not pay sales tax. For example, when making online travel arrangements, you will be charged federal taxes on airline tickets and may be charged state and local taxes on your hotel or rental car. Tips for Selling a Vehicle in Montana. You can view the sales tax rates for various cities in Montana here. tax directly levied on certain goods by a state or federal government The Wayfair decision does not affect Montanans purchasing goods or services online because Montana does not have a general sales tax. You don't buy the motor home, your LLC does. How? We can form a Montana LLC for you, including the LLC formation and initial plate registration, all for a … If you are an online retailer, please seek competent legal advice on how to proceed with collecting and remitting sales tax for sales tax states such as South Dakota. When selling a motor vehicle, every situation will be unique. On June 21, 2018, the US Supreme Court ruled a state may collect sales tax from taxpayers located outside the state if they are selling to state residents and there is a sufficient connection between the taxpayer and the state. The vehicle weight. The Montana Department of Revenue is unable to assist in securing your stimulus payment. Historically, compliance rates with with the Montana Use Tax have been low. Montana cities and/or municipalities don't have a city sales tax. These are general guidelines. In some states, items like alcohol and prepared food (including restaurant meals and some premade supermarket items) are charged at a higher sales tax rate. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Depending on your state’s sales tax rate, you … Light Vehicle Registration and Fees. Laura Blackman, Motor Vehicle Supervisor for Gallatin Valley, explains how a loophole in Montana law allows out-of-state residents to avoid paying sales taxes by registering their vehicles in Montana. The vendor may accept this certificate as a substitute “resale certificate” and exempt the transaction from the state’s sales, use, or transaction tax, but they are not required to accept it. The Montana business (LLC) owns assets such as a motor-home or vehicle. the company conducted more than 200 transactions to South Dakota. There are no local taxes beyond the state rate. The state sales tax rate in Montana is 0.000%. If you buy goods and are not charged the Montana Sales Tax by the retailer, such as with online and out-of-state purchases, you are supposed to pay the 0% sales tax (less any foreign sales tax paid) for these items yourself as the Montana Use Tax. Third-Party Platforms and Peer-to-Peer Transactions Third-party platforms must register for a seller’s permit and collect and remit Rental Vehicle Tax. To legally sell a vehicle, you must be the owner listed on the Certificate of Title. • Copyright © 2021 — Montana Department of Revenue • All rights reserved. If you have been impacted by COVID-19 and are facing hardships, we will work with you to find a solution. • Legal Disclaimer & Privacy Policy •. Every 2020 combined rates mentioned above are the results of Montana state rate (0%). As previously mentioned, there are a few states that do not charge sales tax on cars. Under Montana … Base state sales tax rate 0% * While the base rate applies statewide, it’s only a starting point for calculating sales tax in Montana. The whole theory is that you are forming a Montana business. Montana Exotic Car Registration How to Buy Exotic Vehicles with a Montana LLC Tax Free. The Montana Department of Revenue utilizes cookies to ensure that we give you the best experience on our website. We collect the best resources in the state to help taxpayers file and pay taxes, get help they need, and work with the department to stay in compliance. For example, if you purchased a vehicle from Montana (which has no sales tax), but you live in Natrona County, Wyoming. Find Your State's Vehicle Tax & Tag Fees When purchasing a vehicle, the tax and tag fees are calculated based on a number of factors, including: The county the vehicle is registered in. Please check back regularly or subscribe for COVID-19 updates to receive notifications for future changes. Learn more about MT vehicle tax, obtaining a bill of sale, transferring vehicle ownership, and more. Download state rate tables For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate. 2021 Montana Sales Tax Table A sales tax table is a printable sheet that you can use as a reference to easily calculate the sales tax due on an item of any price - simply round to the nearest $0.20, and find the row in the sales tax chart that shows the applicable tax for that amount. Montanans do not generally owe sales tax to another state, but exceptions may exist for other taxes. The MT sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Throughout this event, we will work hard to keep you updated on the impact COVID-19 has on taxation, alcoholic beverage control, and property assessment. According to MCA 61-3-311, all Montana vehicles avoid sales tax. We serve the people of Montana and are here to help you through this time of crisis. The Montana state sales tax rate is 0%, and the average MT sales tax after local surtaxes is 0% . Sales tax exemption forms (as well as business sales tax id applications, sales tax returns, and the full Montana sales tax code) can be downloaded from the Montana Department of Revenue here . Purchase a used truck in Wyoming, you will still pay Wyoming sales tax. If you are a Montana business owner, you can learn more about how to collect and file your Montana sales tax return at the 2021 Montana Sales Tax Handbook . Other items including gasoline, alcohol, and cigarettes are subject to various Montana excise taxes in addition to the sales tax. You can check on the status of your COVID-19 Stimulus payment at IRS.gov/Coronavirus/Get-My-Payment. Four of the states mentioned above – Alaska, Delaware, New Hampshire, and Oregon – don’t let you register your vehicle there if you don’t live in that state. There is no city sale tax for the Montana cities. The Wayfair decision does not affect Montanans purchasing goods or services online because Montana does not have a general sales tax. The type of license plates requested. In lieu of a sales tax, Delaware assesses a gross receipts tax on certain businesses. … Because Montana does not have business personal property tax on assets that are licensed, you pay no sales tax, just a licensing fee. Tax-Rates.org provides free access to tax rates, calculators, and more. Of course, once the BB had his … To put the tax in comparison, Virginia’s general sales tax as of 2017 is 5.3% – on a $150,000 vehicle, that would add up to nearly $8,000 in additional taxes paid to the big boys upstairs. 2021 Montana state sales tax. Give the completed form to your out-of-state vendor when you make a purchase. Montana MPG 14.97 Miles 14,556 Average price/gallon $2.25 Annual Cost $2,189. Conversely, if you live in a no-sales-tax state (Delaware, Montana, New Hampshire, Oregon, and some parts of Alaska), you don’t need to worry about having to pay sales tax if you choose to travel out-of-state for your next car … Whether or not you have a trade-in. But if he’d bought the car through his Montana LLC, he’d pay zero sales tax because Montana doesn’t collect any. When it comes to taxes and fees, Montana is a mixed bag. Montana does not have a sales tax exemption certificate. 12-month registration – The owner pays one year of the registration rate, county option tax, all other registration fees and any special plate fees. Montana does not exempt any types of purchase from the state sales tax. Montanans do not generally owe sales tax to another state, but exceptions may exist for other taxes. Your are expected to voluntarily list your liable purchases on a Montana Use Tax Return, which should be attached with payment to your Montana Income Tax Return. 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