N/A — Montana has no state sales tax and no economic nexus threshold.
N/A — Montana has no state sales tax.
Affiliate Nexus
Affiliate nexus rules have no application in Montana for sales tax purposes. Montana imposes no general state sales or use tax, and the economic nexus doctrine established by South Dakota v. Wayfair has no effect on sales of general goods or services into the state. Because no underlying sales tax obligation exists, the affiliate nexus framework, which functions solely as a mechanism for establishing a collection obligation under a sales tax, has nothing to operate against in Montana.
Physical Nexus
Physical nexus in the sales tax sense has no application in Montana. The state imposes no general sales or use tax, so the presence of employees, offices, warehouses, property, or any other in-state activity does not create sales tax nexus exposure. Businesses with physical operations in Montana may, however, have income tax filing obligations depending on the nature and extent of their in-state activity, particularly where that activity extends beyond the mere solicitation of orders for tangible goods — the threshold at which federal P.L. 86-272 protections cease to apply.
Montana does maintain a narrow set of transaction-based excise taxes that function similarly to sales taxes in specific industries. The lodging facility use tax is imposed at 4% on short-term accommodations, including hotels, bed-and-breakfasts, and vacation rentals. An additional lodging facility sales tax of 4% applies to the same category of accommodations, bringing the combined lodging tax rate to 8%. Online platforms that facilitate short-term lodging, including Airbnb and Vrbo, are required to collect and remit on facilitated stays. A rental vehicle tax of 4% applies to vehicle rentals of 30 days or fewer. Separately, certain designated tourism communities, including West Yellowstone, Big Sky, Whitefish, and Cooke City, may levy a local resort tax of up to 3% on lodging, dining, alcohol, ski resort sales, and luxury goods. The resort tax is administered locally and not by the Montana Department of Revenue.
Trailing Nexus
Trailing nexus has no application in Montana. The state imposes no general sales or use tax, so there is no prior collection obligation that could extend beyond a period of reduced or ceased in-state activity.
