Montana's bed tax set to increase in 2020

MISSOULA, Mont. — Gov. Steve Bullock recently signed a bill that will increase Montana’s lodging tax or bed tax by 1 percent. It won’t take effect until January 2020, but it’s projected to make a big impact.

The fiscal note states, “This bill would increase state special revenue by $2,198,00 in FY 2020, $9,096,000 in FY 2021.”

It’s set to bring in over $9 million each year after 2020.

Officials plan to put the money toward building the Montana Heritage Center.

Your stay at hotels, motels, Airbnbs, ranches and campgrounds will all be taxed.

“Just like sales tax, this type of lodging tax, room tax is a tax paid by the consumer,” explained Rob Stephens, the co-founder and general manager of Avalara MyLodgeTax. “So, in this case, it’s a tax paid by the traveler.”

Stephens said Montana’s overall 8 percent travel tax rate is pretty low compared to other states, which average around 11 percent.