Everyday Purchases And Columbia Falls’ 3% Resort Tax

Moving to Columbia Falls or planning a long weekend near Glacier? You will notice a small extra line on some receipts: a 3 percent resort tax. If you are new to Montana, it can feel surprising, especially since the state does not have a general sales tax. You deserve a clear, simple explainer of when you will see it, what is usually exempt, and what it means if you run a short‑term rental or local business. Let’s dive in.

What the 3 percent resort tax is

Columbia Falls imposes a 3 percent resort‑area tax within city limits on certain transactions tied to tourism and local consumption. The goal is to help the city fund services that support residents and visitors.

Montana does not have a statewide sales tax. Local resort taxes are set by individual communities, and each city’s ordinance defines exactly what is taxable and what is exempt.

Where you see it day to day

You are most likely to see the tax on lodging, prepared meals, and some rentals or tourist‑oriented purchases within Columbia Falls city limits. Because each Montana city writes its own rules, categories can differ by community. The examples below reflect common patterns you can expect to encounter in Columbia Falls.

Dining and prepared food

Prepared food at restaurants is commonly taxed. That typically includes dine‑in meals and takeout prepared items. Think burgers, pizza, and a deli sandwich made to order.

Catering and special event meals may also fall in this category when the meal is prepared and sold for immediate consumption.

Lodging and short stays

Short stays in hotels, motels, inns, and many short‑term rentals are commonly taxed. If you book a one‑ or two‑night visit, expect to see the 3 percent line on your invoice.

Long‑term residential leases are usually treated differently from short‑term lodging. Many cities exempt longer leases, but the exact threshold depends on local definitions.

Retail, rentals, and admissions

Some resort taxes include certain equipment or recreation rentals and tourist‑oriented goods. Examples that are often taxable in resort communities include bike, ski, or boat rentals and some souvenir sales.

Admissions or fees for local recreational facilities or events can also be included in some cities. Whether that applies in Columbia Falls depends on the ordinance.

What is commonly exempt

Groceries and prescription drugs are commonly exempt. Unprepared staple foods you buy at a grocery store are a typical example.

Sales for resale, some sales to exempt organizations, utilities, and many professional services are usually outside the scope. Always look to the receipt to see whether the tax was applied.

City limits and scope

The tax applies to taxable transactions that occur within Columbia Falls city limits. If a purchase happens outside the city, it generally would not be subject to the city’s resort tax. Some ordinances use destination‑based rules for deliveries into the city. When in doubt, check where the transaction is considered delivered.

How it shows on your receipt

Businesses typically collect the resort tax at the point of sale and show it as a separate line on invoices or receipts. The 3 percent is usually calculated on the sale price before tips, and the calculation is typically based on the price after any discounts are applied. You should see a clear breakdown when you pay.

Everyday examples: quick math

• Lodging example: If your nightly room rate is 200 dollars, the 3 percent resort tax adds 6 dollars. Your lodging total would reflect the room charge plus the 6 dollars.
• Restaurant example: On a 50 dollar prepared meal, the resort tax adds 1 dollar and 50 cents. You will see it listed separately from any optional tip.
• Groceries vs. deli: A basket of unprepared staple foods is commonly exempt. A pre‑made deli sandwich is usually considered prepared food and often taxed.

Short‑term rental hosts: what to know

If you offer a short‑term rental, you need to understand who collects and remits the resort tax. Some booking platforms collect local taxes on your behalf, while others may not. Even when a platform collects, hosts may still need to register or file informational returns with the city. Keep your listing details, invoices, and payout summaries organized so you can document how tax was handled.

Business owners: collection and filing basics

Operating a business that sells taxable items inside city limits comes with a few extra steps. Build these into your setup so your team handles them consistently.

Register and collect

• Register with the city before you begin making taxable sales.
• Configure your point‑of‑sale system to calculate the 3 percent resort tax on applicable transactions.
• Show the tax as a separate line on receipts.
• Train staff on which items are taxable versus commonly exempt.

Quarterly filing cadence

Cities with resort taxes typically require quarterly returns with payment due shortly after each quarter ends. A common rhythm looks like this:

• Quarter 1: January through March, due in April
• Quarter 2: April through June, due in July
• Quarter 3: July through September, due in October
• Quarter 4: October through December, due in January

Confirm your exact due dates and whether electronic filing is available. Some cities allow consolidated reporting or require monthly filing for higher‑volume sellers.

Records, audits, and penalties

Keep detailed records of taxable and exempt sales, exemption certificates, returns, and payments. Many cities recommend retaining records for several years. Late filings often accrue penalties and interest. Know your deadlines and set reminders to avoid extra costs.

How resort tax revenue is often used

Local resort tax revenue is commonly directed to things like tourism promotion, visitor services, and capital projects that benefit residents and guests. The specific allocations for Columbia Falls are defined by local rules and budgets set by the city.

Budgeting tips for locals and visitors

• Plan for the 3 percent on prepared meals, short stays, and some rentals. It is a modest amount, but it adds up over a busy weekend.
• If you are comparing lodging in nearby towns, include the 3 percent in your total trip budget.
• For weekly grocery runs, expect staple foods to be commonly exempt, while prepared deli items are often taxed like restaurant food.

Buying or investing in Columbia Falls

If you are relocating, purchasing a second home, or evaluating an investment property, it helps to understand how everyday costs work here. The 3 percent resort tax affects short‑term stays and prepared purchases more than daily essentials. For investor‑owners exploring short‑term rentals, factor in how the tax is collected and remitted as part of your operating plan.

You deserve local, practical guidance as you compare neighborhoods, run numbers, and plan your move. If you have questions about how local taxes may intersect with buying, selling, or owning property, let’s talk.

Ready to make a smart move in Northwest Montana? Request a Free Home Valuation & Consultation with Erin today. Connect with Unknown Company to start the conversation.

FAQs

What is Columbia Falls’ 3 percent resort tax?

• It is a local tax applied to certain transactions within Columbia Falls city limits, commonly including lodging, prepared meals, and some rentals.

Does Montana have a statewide sales tax?

• No, Montana does not have a statewide general sales tax; resort taxes are set by individual communities.

Which everyday purchases are usually taxed in Columbia Falls?

• Prepared restaurant meals, short‑term lodging, and some recreation rentals are commonly taxed, while unprepared groceries and prescriptions are often exempt.

How is the resort tax shown on my receipt?

• It typically appears as a separate line at checkout, calculated at 3 percent on applicable items.

Do delivery or takeout meals include the resort tax?

• Prepared food for immediate consumption, including takeout, is commonly taxable at 3 percent when sold within city limits.

Are long‑term rentals subject to the resort tax?

• Long‑term residential leases are often treated differently and may be exempt, while short stays are commonly taxable.

Who remits the tax for short‑term rentals booked on platforms?

• Some platforms collect and remit on behalf of hosts, but responsibilities vary; hosts should confirm platform practices and any city registration requirements.

When do businesses file resort tax returns?

• Filing is commonly quarterly, with returns and payment due shortly after each quarter ends; confirm exact deadlines with the city.

What records should businesses keep for compliance?

• Maintain sales totals, exemption certificates, returns, and payment confirmations for several years to support filings and potential audits.

How is resort tax revenue typically used by cities?

• Cities often direct funds to tourism promotion, visitor services, and capital projects as defined by local ordinances and budgets.