Frequently Asked Questions

General

When and where does the Board meet?

The Board posts its meeting schedule on the Events page.  Generally, the board meets the second Wednesday of each month at 9am. 

What are the boundaries of the Big Sky Resort Area District (BSRAD)?

The District incorporates land from both Gallatin and Madison Counties.

BSRAD District Map [PDF]

BSRAD Interactive Map »

Following is the legal description:  That Gallatin County segment of the boundary is described as follows: Commencing at the intersection of the Gallatin-Madison county line and the township line between Township 7 South and Township 8 South, thence due east along said Township line to the Gallatin River-Yellowstone River drainage divide, thence north along said divide to where it intercepts the Gallatin-Park County line, thence north along said county line to where it intercepts the Township line between Township 5 South and Township 6 South, thence due west along said Township line until it intercepts the Township line between Range 1 East and Range 2 East, then South along said Township line to where it intercepts the Township line between 7 South and Township 8 South, thence due East along said Township line to the Point of Beginning. The Madison County segment of the boundary is described as follows: Commencing at the intersection of the Gallatin-Madison County line and the Township line between Township 7 South and Township 8 South, thence due west along said Township line to the east boundary of Range 1 East, thence north along said Range boundary line to the south boundary line of Township 5 South, thence east along said Township line to the Gallatin-Madison county line, thence due south to the Point of Beginning.

Are any nonprofits, government agencies or other organizations exempt from the resort tax?

No. The resort tax is charged on the transaction of a sale of a taxable item or service within the boundaries of the District, no single person, agency, or organization is exempt from paying the resort tax. However, goods and services, luxuries, and programs offered or provided by tax-exempt, nonprofit, or educational organizations are exempt, unless this income is classified as unrelated business taxable income (as defined by the IRS).

Does the District audit its tax collecting establishments?

Yes. Each year, the BSRAD audits a minimum of 20 tax collecting establishments. Establishments are selected based on the Compliance Audit Selection Policy, available in the BSRAD Policy Manual. The businesses undergo “agreed upon procedures” performed by a third-party CPA firm.

Resort Tax Collections

What is the rate of the resort tax?

The rate of the resort tax is 4% of the retail value of the items or services sold.

What establishments collect the resort tax?
Is the rental of a private room in my property subject to resort tax?

All rental agreements for lodging facilities, except rental agreements for a duration longer than thirty (30) days and employee housing regardless of duration or location within the District are subject to the 4% resort tax.
Please refer to Ordinance 98-01.

Are the tax records and reporting forms submitted to the District confidential?

Yes. The records and forms submitted to the District by tax collecting establishments are confidential and not open to public inspection unless so ordered by the District Board pursuant to Article II, Sections 9 and 10, of the Constitution of the State of Montana, a court of competent jurisdiction, or upon the filing of an action in District Court.

How often is the resort tax remitted to the District?

For most collectors, taxes are remitted on a monthly basis and are due by the end of the month following the month of collections. For example, resort taxes collected in July are to be remitted by the end of August.

A quarterly remittance plan is available for collectors that collect less than $5,000 of resort taxes in the prior year. Quarterly remittances are due by the end of the month following the quarter of collections. For example, resort taxes collected in July, August, and September are to be remitted by the end of October.

Establishments that operate seasonally wintin the District have the option to remit resort taxes seasonally per the District’s established policies and procedures.

How do I remit tax collections?

Resort Tax has gone paperless. To remit, log in to MUNIRevs resorttax.munirevs.com If you have questions, email MUNIRevs support at support@munirevs.com or call them at 888-751-1911.

Are there penalties and interest for late payments?

Yes. Delinquent taxes are assessed interest and a late fee.

Interest is charged on late payments at 12% per annum: or 1% for each month the payment is overdue i.e. 1% for 1 month overdue, 2% for 2 months overdue, 3% for 3 months overdue, etc.

Late fees are as follows:

0-5 days – $0 (5-day grace period)
5 days – 1 month late – $30
2 months late – $60
3 months late – $90
4 months late – $120
5 months late or more – $150

Are there goods and services exempt from the resort tax?

Yes.  As listed in the District’s governing Ordinance 98-01  in section 4, Item 10.

Are Fundraiser, Charity and Community Service events required to collect the resort tax?
Only unrelated business taxable income (as classified by the organization itself) of any tax-exempt, non-profit, or educational organization is subject to the 4% resort tax. For a definition of Unrelated Business Income please view the IRS definition here.
Are the amounts paid for auction and raffle items, which have been donated, taxable?

No.

Are vendors at markets required to collect the resort tax on the sale of goods and services otherwise taxable?

Yes. All vendors selling taxable goods or services at a market or fair held within the boundaries of the District are required to collect and remit the resort tax just the same as all permanent establishments within the District.

For more information, please view our Event Vendor FAQ [PDF]

When an establishment ships taxable items purchased in Big Sky to an address outside the District should resort tax be collected?

Please refer to BSRAD’s Tax Guide for Online Sales.

I have a retail store but also sometimes bill clients directly. Is a taxable item, such as a piece of art, still taxable if billed directly to a client?

Yes, regardless of how the sale takes place, unless the transaction is considered wholesale, tax should be collected and remitted on the sale of any taxable good or service wherever sold within the District.

What if some items or services on an invoice or part of a package offered by my business are not taxable?
Taxes should be collected and remitted on the taxable items or on the portion of the package that includes taxable items. If the business is considered an Enumerated Establishment (See Section 4.5 of Ordinance 98-01 , as amended), all sales are taxable.

Resort Tax Funding

How are resort tax funds awarded?

The revenue derived from the resort tax is awarded annually by the Board for tourism development, infrastructure facilities, post office services, ambulance and emergency services, public transportation systems, snow plowing, and other services that provide for the public health, safety, and welfare within the District.

How does an entity apply for resort tax funding?

Funds are awarded annually in June. Complete the application available on the Resort Tax Funding page, which contains all the specifications and deadlines.

Are the applications for Resort Tax appropriations confidential?

No. All applications for resort tax funds are public documents and can be viewed online shortly after the application deadline, or by visiting the District office.

If an entity has been awarded resort tax funds how does it request payment?

By completing the payment request forms created specifically for the entity by the District and submitting them with valid invoices or documentation to the District office.

1% For Infrastructure Tax Increase

When is the 1% increase effective?

July 1, 2020

How long will the 1% increase be in effect?

The duration of the 1% is as long as the financial commitment for each project, or the expiration of the Big Sky Resort Area District in 2032, whichever comes first.

Who approved the increase in Resort Tax?

Registered voters within the boundaries of the Big Sky Resort Area District voted to increase the rate of the Resort Tax by 1% on May 5, 2020.

What goods & services is the 1% taxing?
All goods & services that are currently taxed at the 3% rate per Ordinance 98-01.
The rate of Resort Tax has been the same since 1992, why is the rate changing now?

In May of 2019, Montana Senate Bill 241 (SB241) passed allowing the 10 designated resort tax communities to levy a vote on an additional 1% tax for voter approved critical infrastructure projects. Through a unanimous vote, the Board of Directors of the Big Sky Resort Area District (District) approved a resolution bringing projects to the Big Sky ballot.

What is the 1% funding?
  • The 1% is designated to fund specific infrastructure projects as designated by Montana Senate Bill 241.
  • In Big Sky the 1% is planned to fund 60% of project costs for the Big Sky County Water & Sewer District’s Water Resource Recovery Facility (WRRF), along with setting aside 500 Single Family Equivalents (SFE’s) dedicated to deed restricted workforce housing projects. Additionally, it will fund the construction of a Lift Station near the Highway 191/64 intersection to convey wastewater from the Canyon Area to the WRRF. This includes a force main paralleling 64 and connecting the Lift Station to the WRRF.
What is the maximum tax rate the District can impose?

With the additional 1% a maximum of 4% can be imposed within the Big Sky Resort Area District.

What is the 1% funding?
  • The 1% is designated to fund specific infrastructure projects as designated by Montana Senate Bill 241 (SB241)
  • In Big Sky the 1% is planned to fund 60% of project costs for the Big Sky County Water & Sewer District’s Water Resource Recovery Facility (WRRF), along with setting aside 500 Single Family Equivalents (SFE’s) dedicated to deed restricted workforce housing projects. Additionally, it will fund the construction of a Lift Station near the Highway 191/64 intersection to convey wastewater from the Canyon Area to the WRRF. This includes a force main paralleling 64 and connecting the Lift Station to the WRRF.
What is the difference between the Montana Lodging Tax and Resort Tax?

 

If I own a short-term rental or hotel when do I change the rate of Resort Tax?

You must collect 4% on all reservations placed on or after July 1, 2020

Do POS (Point of Sale Systems) need to be updated, and by what date?

Yes, all POS’s or other bookkeeping systems need to be updated to reflect the 4% Resort Tax rate beginning on July 1, 2020.

As a business owner/operator how do I remit the additional 1%?

You will remit your taxes using MUNIRevs, the same process currently used to remit Resort Taxes.

Do I need to remit my 1% tax collections separate from my 3% collections?

No, all collections will be submitted together.

When is the first time I will remit Resort Tax at the new 4% rate?
  • If you remit Resort Tax monthly the first day is August 31, 2020.
  • If you remit Resort Tax Quarterly the first day is October 31, 2020.
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