§ 15-65-121 — Distribution Of Tax Proceeds

Montana § 15-65-121

• Jurisdiction: Montana
• Title 15: TAXATION
• Ch. 65: LODGING FACILITY USE TAX
• Part 1: General Provisions

Text

15-65-121 . Distribution of tax proceeds. (1) The proceeds of the tax imposed by 15-65-111 must, in accordance with the provisions of 17-2-124 , be deposited in an account in the state special revenue fund to the credit of the department of revenue. The department of revenue may spend from that account in accordance with an expenditure appropriation by the legislature based on an estimate of the costs of collecting and disbursing the proceeds of the tax. Before allocating the balance of the tax proceeds in accordance with the provisions of 17-2-124 and as provided in subsection (2) of this section, the department of revenue shall determine the expenditures by state agencies for in-state lodging for each reporting period and deduct 4% of that amount from the tax proceeds received each reporting period. The department of revenue shall distribute the portion of the 4% deducted from the state agencies in-state lodging calculation that was paid with federal funds to the department of administration for return to the federal government.
(2) The balance of the tax proceeds received each reporting period and not deducted pursuant to the expenditure appropriation or distributed to agencies that paid the tax with federal funds must be transferred to individual accounts in the state special revenue fund as follows:
(a) 1% to the Montana historical society to be used for the installation or maintenance of roadside historical signs and historic sites;
(b) 2% to the university system for the establishment and maintenance of a Montana travel research program;
(c) 6.5% to the department of fish, wildlife, and parks for the maintenance of facilities in state parks that have both resident and nonresident use;
(d) 1.5% to the invasive species state special revenue account established in 80-7-1004 ;
(e) 24.5% to be used by the department of commerce for tourism media, advertising film programs, made-in-Montana promotions and main street programs, wayfinding and signage, and support to trade offices;
(f) 16.5% to be used by the department of commerce for rural tourism, under-visited area attraction projects, and tribal tourism, including infrastructure, marketing, and promotional activities;
(g) 15.5% to be used by the department of commerce for tourism-related emergency services and tourism grants, including agritourism grants and Montana-based film grants;
(h) 2.5% to be used by the department of commerce in collaboration with the office of economic development established in 2-15-218 for regional tourism assistance, new tourism attractions, and other state business development programs;
(i) (i) except as provided in subsection (2)(i)(ii), 22.5% to be distributed by the department to regional nonprofit tourism corporations in the ratio of the proceeds collected in each tourism region to the total proceeds collected statewide; and
(ii) if 22.5% of the proceeds collected annually within the limits of a city, consolidated city-county, resort area, or resort area district exceeds $35,000, 50% of the amount available for distribution to the regional nonprofit tourism corporation in the region where the city, consolidated city-county, resort area, or resort area district is located, to be distributed to the nonprofit convention and visitors bureau in that city, consolidated city-county, resort area, or resort area district;
(j) 0.5% to the state special revenue account provided for in 90-1-135 for use by the state-tribal economic development commission established in 90-1-131 for activities in the Indian tourism region;
(k) 2.5% to the Montana historical interpretation state special revenue account established in 22-3-115 ;
(l) 2.5% to the emergency lodging and recovery for victims of domestic violence or human trafficking account established in 44-4-1506 ;
(m) 2% to the Montana heritage preservation and development account provided for in 22-3-1004 ;
(n) any unspent funds from the accounts in subsections (2)(e) through (2)(h) must be deposited in the account of subsection (2)(e) by October 1 of each year; and
(o) $250,000 in each year of the biennium beginning July 1, 2025, to the Montana heritage commission for projects at Reeder's Alley in Helena and Grace Methodist Church in Virginia City.
(3) If a city, consolidated city-county, resort area, or resort area district qualifies under 15-68-820 (5)(b)(iii) or this section for funds but fails to either recognize a nonprofit convention and visitors bureau or submit and gain approval for an annual marketing plan as required in 15-65-122 , then those funds must be allocated to the regional nonprofit tourism corporation in the region in which the city, consolidated city-county, resort area, or resort area district is located.
(4) If a regional nonprofit tourism corporation fails to submit and gain approval for an annual marketing plan as required in 15-65-122 , then those funds otherwise allocated to the regional nonprofit tourism corporation may be used by the department of commerce for tourism promotion and promotion of the state as a location for the production of motion pictures and television commercials.
(5) The tax proceeds received that are transferred to a state special revenue account pursuant to subsections (2)(a) through (2)(c) and (2)(e) through (2)(i) are statutorily appropriated to the entities as provided in 17-7-502 .
(6) The tax proceeds received that are transferred to state special revenue accounts pursuant to subsection (2) are subject to appropriation by the legislature.

Legislative History

En. Sec. 7, Ch. 607, L. 1987; amd. Sec. 15, Ch. 607, L. 1987; amd. Sec. 18, Ch. 83, L. 1989; amd. Sec. 2, Ch. 647, L. 1989; amd. Sec. 1, Ch. 11, Sp. L. July 1992; amd. Sec. 16, Ch. 455, L. 1993; amd. Sec. 1, Ch. 574, L. 1993; amd. Sec. 20, Ch. 18, L. 1995; amd. Sec. 2, Ch. 442, L. 1995; amd. Sec. 11, Ch. 469, L. 1997; amd. Sec. 1, Ch. 490, L. 1999; amd. Sec. 2, Ch. 195, L. 2001; amd. Sec. 1, Ch. 469, L. 2001; amd. Sec. 2, Ch. 11, Sp. L. August 2002; amd. Sec. 8, Ch. 13, Sp. L. August 2002; amd. Sec. 20, Ch. 130, L. 2005; amd. Sec. 11, Ch. 475, L. 2007; amd. Sec. 1, Ch. 319, L. 2011; amd. Sec. 2, Ch. 358, L. 2011; amd. Sec. 1, Ch. 32, L. 2013; amd. Sec. 3, Ch. 405, L. 2017; amd. Sec. 2, Ch. 356, L. 2019; amd. Sec. 8, Ch. 459, L. 2019; amd. Sec. 4, Ch. 563, L. 2021; amd. Sec. 1, Ch. 67, L. 2023; amd. Sec. 2, Ch. 699, L. 2023; amd. Sec. 3, Ch. 758, L. 2023; amd. Sec. 13, Ch. 763, L. 2023; amd. Sec. 1, Ch. 605, L. 2025; amd. Sec. 3, Ch. 738, L. 2025.