The Supreme Court of Montana affirmed a lower court’s determination that a taxpayer was liable for accommodations sales tax on its resort service fees, but did not owe accommodations sales tax for forfeited guest deposits or lodging facilities use tax on its resort service fees. The taxpayer, Boyne USA, Inc. owns and operates Big Sky
Montana
Another One: Proposed Montana Bill Would Tax Digital Advertising Services
By Nikki Dobay & Samantha Trencs on
Posted in Digital Economy, Policy and Legislation
A digital advertising tax proposal (LC 3237) has been drafted in Montana at the request of a Republican legislator. The bill, currently in draft form, would impose a new 10 percent tax on the annual gross revenues derived from digital advertising services in Montana on each person with worldwide annual gross revenue from…
Montana Supreme Court Holds Actual Dividends Fully Deductible in Water’s-Edge Case
By Chris Lee & Scott Wright on
Posted in In the News, Income Tax
The Montana Supreme Court held that the Department erred in determining that Exxon Mobil was entitled to only an 80% exclusion for dividends received from domestic corporations excluded from the water’s-edge combined return, and concluded that 100% of the actual dividends it received from such entities are excluded from income. Pursuant to Montana statute, Exxon…
Huckleberry Sound? Montana Supreme Court Orders OTCs to Collect Sales Tax on Reservation Fees
Posted on
Posted in Noteworthy Cases
By Chris Mehrmann and Charlie Kearns
The Montana Supreme Court held that online travel companies (OTCs) – including Priceline, Expedia, Orbitz and others – are subject to the state’s sales taxes on accommodations, campgrounds and rental vehicles, but are not subject to the state’s lodging facility use tax. The court held that the reservation fees…