On April 13, 1992, the general electorate of the Big Sky area created the Big Sky Resort Area and adopted a 3% Resort Tax to be charged on “luxury items and services” and collected by local businesses within the boundaries of the Resort Area.
In 1998 the general electorate of the Big Sky Resort Area then voted to create a District which brought the administration of the resort tax from the county to the local Big Sky area. The District is managed by a five member elected Board of Directors.
Resort taxes are collected and remitted monthly and the Board of Directors appropriates the funds to critical local community services on an annual basis.
Historical Tax Collection Data
Are you interested in knowing the total resort taxes collected during the last ten years? Please download the Annual Resort Tax Collections by Fiscal Year report for current and historical tax collection data. This spreadsheet will be updated monthly.
Resort Tax Collectors
Businesses and short-term vacation rental owners located within the boundaries of the Big Sky Resort Area District are required, by law, to collect the 3% resort tax on all “luxury items and services” sold with the exception of specific exempted items.
For clarification on who is required to collect the resort tax and what items and services are subject to the tax, review the following documents:
The District’s Legal Ordinance No. 98-01-ORD which denotes the details of goods and services subject to and exempted from the resort tax.
How To Collect the Resort Tax
If your business or vacation rental is located within the boundaries of the District and you are selling goods or services subject to the tax, you must register with the District and begin collecting and remitting the tax.
STEP 1. Complete the appropriate Registration Form and return it to the District within 30 days of your first tax collection. There are two registration forms, one for Short-Term Rentals, and one for all other Businesses.
STEP 2. Review the appropriate Tax Collection Overview to learn the basics of the resort tax collection and remittance. There are two Overviews, one for Short-Term Rentals, and one for all other Businesses.
STEP 3. Once you are registered and understand the basics of the resort tax, begin collecting the tax by charging your customers 3% on appropriate transactions. You may retain 5% of what you collect as an Administrative Fee for your time spent collecting and remitting the tax.
STEP 4. Remit the tax on a monthly basis. Remember:
Tax remittances are due by the last day of the month following the month in which they were collected.
Your remittance must include a remittance form. You may print the monthly remittance form here, or you may request a remittance form booklet by contacting the District office at any time. The booklet contains 24 carbon copy “coupons” which make maintaining your records easier and allow you to avoid printing or copying the form each month.
PLEASE NOTE: Beginning July 2010, a quarterly remittance plan option will be available for eligible collectors with a valid registration on file with the District. If you qualify for quarterly remittance, you will be notified by the District office in July each year and tax remittances will be due by the last day of the month following the quarter in which they were collected. If you are eligible and enroll in the quarterly remittance plan, the District office will mail you four remittance coupons each year.
Closures and Zero Tax Collections
If your business or short-term rental will be closing for business, not to reopen, please contact the District office so that you may complete the closure section of your registration. Once completed, your account will be made inactive and you will need to re-register if you were to reopen.
If your business or short-term rental will be closing just for a couple months or season, you may note this closure on the remittance form and the District office will not expect remittances during that time period. Simply resume remittance once your business or rental is open again. You can also notify the District office of a seasonal closure online by submitting a Status Notification.
Unless the District office has been notified of a seasonal closure, you must submit a remittance coupon every month, even if you had zero tax collection transactions; simply enter zero on the remittance form and submit as usual.
Late Tax Remittances
You must submit a remittance form each month or quarter even if payment is not made. Once late payment is made, the taxes are assessed interest and a late fee.
Interest is charged on late payments at 12% per annum: or 1% for each month the payment is overdue i.e. 1% for 1 month overdue, 2% for 2 months overdue, 3% for 3 months overdue, etc.
A one-time late fee of $30.00 is also charged for each delinquent payment.
Remember, it is always best to communicate with the District office if you know a remittance will be late. Don’t hesitate to contact the Administrative Officer for assistance.
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