Is The Bed Tax Doing Its Job in Montana?

It's Always About the Fine Print on Things - Especially Taxes in Montana

Over the years of travelling across our state, one of the little "grinds my gears" kind of thing has been paying a tax as a resident while staying on the road.

via GIPHY

Yes, there really is a tax in Montana to stay in your favorite hotel or motel.  But honestly, until I dug into what that tax does, I had no idea just how much money that tax really does bring into our coffers.

A Refresher on Montana Code Annotated from 2017

Often referred to as the bed tax, in legalese it is the "accommodation charge" and is part of Montana Code Annotated 15-65-101.  It "means the fee charged by the owner or operator of a facility for use of the facility for lodging, including bath house facilities, but excluding charges for meals, transportation, entertainment, or any other similar charges."

READ RELATED:  Michelin Key Hotels to Get Away to In Big Sky Country

Currently set at 4%, in the fiscal year 2024 so far, Montana has seen an increase in those tax dollars of 3% over last year.  According to the Montana Department of Commerce, that adds up to over $60 million dollars generated.  In 2024 alone!

Get our free mobile app

Which Counties See the Most Dollars Generated in Montana and Where it Goes

Hosting Montana's largest city, it is easy to see how Yellowstone County generates a lion's share of those dollars.  That county accounts for 39% of the taxes generated.  However, close behind is Glacier County, with 34%.  Others that follow include:

• Southeast Montana - 11%
• Southwest Montana - 10%
• Central Montana - 6%
• Missouri River Country - 1%

READ MORE:  The High Cost of Owning a Dog in Montana - How Much?

As for where those tax dollars are headed, the largest percentage goes right back to promoting our state to bring tourism in at over 60%.  You can find a complete breakdown of those dollars here.