Montana Bed Taxes Pouring in at Record Rate
The Montana Department of Revenue is reporting that the amount of money coming into the state from bed taxes is at an all-time high.
"Every year for the past five years, we've seen a higher number of collections, and I think that aligns with our continued increase in tourism in Montana," said Montana Department of Revenue Spokeswoman Mary Ann Dunwell.
What many call the "bed tax" totals seven percent and is paid by users of Montana hotels and motels. Most of that money won’t go directly into the State’s general fund though..
"If you want to drill down, it's two taxes combined: the Lodging Facilities Use tax, which is 4 %, and that goes to promoting tourism in Montana and then 3% is the Accommodation Sales Use Tax, and that goes to our general fund," Dunwell said. "As you know, our general fund sorely needs that revenue at this point."
The two taxes combined are bringing in about two million dollars more so far this fiscal year than they were at the same time last fiscal year, which was also a record high.