Frequently Asked Questions
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 8am at the District office located at 11 Lone Peak Drive, Suite 204 in the Big Sky Town Center.
What are the boundaries of the Big Sky Resort Area District (BSRAD)?
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.
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.
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.
Resort Tax Collections
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 3% 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.
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.
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?
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.
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 3% 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?
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.
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.
Why was there a significant increase in May and November collections beginning in fiscal year 2018?
Please see the press release below:
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.
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.
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 appropriated 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.