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FAQ's

Here are some of our frequently asked questions.

General

When and where does the Board meet?
What are the boundaries of the Big Sky Resort Area District (District)?
Are any nonprofits, government agencies or other organizations exempt from the resort tax?
Does the District audit its tax collecting establishments?

Resort Tax Collections

What establishments collect the resort tax?
Are the tax records and reporting forms submitted to the District confidential?
What is the rate of the resort tax?
How often is the resort tax remitted to the District?
How do I remit tax collections?
Are there penalties and interest for late payments?
Are there goods and services exempt from the resort tax?
Are non-profits required to collect resort tax on the sale of goods and services otherwise taxable?
Are Fundraiser, Charity and Community Service events required to collect the resort tax?
Are the amounts paid for auction and raffle items, which have been donated, taxable?
Are vendors at markets required to collect the resort tax on the sale of goods and services otherwise taxable?
When an establishment ships taxable items purchased in Big Sky to an address outside the District should resort tax be collected?

Resort Tax Funding

How are resort tax funds appropriated?
How does an entity apply for resort tax funding?
Are the applications for Resort Tax appropriations confidential?
If an entity has been appropriated resort tax funds how does it request payment?

General

When and where does the Board meet?
The Board posts its meeting schedule on the Home page under News. Generally, the board meets the second Wednesday of each month at 9:00 a.m. at the District office located at 11 Lone Peak Drive, Suite 204 in the Big Sky Town Center.
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What are the boundaries of the Big Sky Resort Area District (District)?
A map of the District is on the Resort Tax Collections page. The District incorporates land from both Gallatin and Madison Counties.

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.
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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. The resort tax is a tax on the transaction, not on the agency.
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Does the District audit its tax collecting establishments?
Yes. Each year, the BSRAD audits up to 10 of its tax collecting establishments. Establishments can be selected by the Board or at random. The businesses undergo "agreed upon procedures" performed by a third-party CPA firm.
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Resort Tax Collections

What establishments collect the resort tax?
Please see Sections 8 and 9 of the District's governing ordinance. Go to the Governing Documents page, scroll down to Ordinances and select Ordinance 98-01, as amended 6.1.15.
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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.
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What is the rate of the resort tax?
The rate of the resort tax is 3% of the retail value of the items or services sold.
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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 remit $1,000 or less in resort tax per 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.
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How do I remit tax collections?
Complete and mail the Registration Form and the Monthly Remittance Form available on the Resort Tax Collections page along with payment to the PO Box on the Remittance Form. The account will be assigned account number, placed on a monthly or quarterly remittance schedule and mailed a remittance form booklet.
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Are there penalties and interest for late payments?
Yes. Delinquent taxes are to bear interest at the rate of 1% per calendar month, for the delinquent month (12% per annum; 1% for one month late, 2% for two months late, etc.). Also, a one-time late fee of $30.00 is assessed for each reporting month that is delinquent.
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Are there goods and services exempt from the resort tax?
Yes. As listed in the District's governing ordinance. Go to the Governing Documents page, scroll down to Ordinances and select Ordinance 98-01, as amended 6.1.15 and review section 10.
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Are non-profits required to collect resort tax on the sale of goods and services otherwise taxable?
Yes. Non-profit organizations do not have any statutory exemption from the obligation to collect the resort tax on the goods and services sold, which would otherwise be taxable.
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Are Fundraiser, Charity and Community Service events required to collect the resort tax?
Yes. When a ticket is sold the resort tax must be collected. The exception is when the ticket expressly states that a specified dollar amount of the ticket price goes to charity. Resort tax is not collected on the charitable deduction.
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Are the amounts paid for auction and raffle items, which have been donated, taxable?
No.
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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.
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When an establishment ships taxable items purchased in Big Sky to an address outside the District should resort tax be collected?
Yes. Resort tax must be collected on all taxable items, regardless of their final destination. Similarly, if a customer contacts an establishment from outside the District and orders a taxable item, tax must be collected on the transaction.
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Resort Tax Funding

How are resort tax funds appropriated?
The revenue derived from the resort tax is appropriated 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.
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How does an entity apply for resort tax funding?
Funds are appropriated annually in June. Complete the application available on the Resort Tax Funding page, which contains all the specifications and deadlines.
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Are the applications for Resort Tax appropriations confidential?
No. All applications for resort tax funds are public documents and can be viewed by visiting the District office.
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If an entity has been appropriated resort tax funds how does it request payment?
By completing the payment request forms available on the Resort Tax Funding page and submitting them with valid invoices or documentation to the District office.
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