How a RAD Works in Montana

e are some of our frequently asked questions.
	General
	When and where does the Board of Directors meet?
	What are the boundaries of the Big Sky Resort Area District?
	Are nonprofits, government agencies, or other "exempt" agencies exempt from the resort tax?
	Does the District audit its tax collectors?
	Resort Tax Collections
	Who collects Resort Taxes?
	Are the tax records and reporting forms submitted to the District confidential?
	How much is the Resort Tax?
	How often are the taxes remitted to the Big Sky Resort Area District?
	Is there a form to complete with remittances?
	Are there penalties and interest for late payments?
	Are there goods and services that are exempt for the Resort Tax?
	Are non-profits required to collect resort tax on the sale of goods and services otherwise taxable?
	Are Fundraiser, Charity and Community Service events required to collect resort tax?
	Are the amounts paid for auction and raffle items, which have been donated, taxable?
	Are vendors at markets required to collect the resort tax on the sale of goods and services otherwise taxable?
	When a business ships taxable items purchased in Big Sky to an address outside the District should resort tax be collected?
	Resort Tax Funding
	How is the Resort Tax appropriated?
	How does one apply for Resort Tax funding?
	Are the applications for Resort Tax appropriations confidential?
	If my organization has been appropriated Resort Tax Funds, how do I request payment?
	General
	When and where does the Board of Directors meet? The Board of Directors meets from approximately 9:00 a.m. to 11:30 a.m. on the second Wednesday of each month at the Big Sky Resort Area District office. Our office is located at 11 Lone Peak Drive, Suite 204 in the Big Sky Town Center. However, the Board does not hold a regularly scheduled business meeting during the months of May and June as the Resort Tax Appropriation meetings take place and are announced at that time.
	[Back to top]
	What are the boundaries of the Big Sky Resort Area District? That Gallatin County segment of the boundary is described as follows: Commencing at the intersection of the Gallatin-Madison county line and the township line between Township 7 South and Township 8 South, thence due east along said Township line to the Gallatin River-Yellowstone River drainage divide, thence north along said divide to where it intercepts the Gallatin-Park County line, thence north along said county line to where it intercepts the Township line between Township 5 South and Township 6 South, thence due west along said Township line until it intercepts the Township line between Range 1 East and Range 2 East, then South along said Township line to where it intercepts the Township line between 7 South and Township 8 South, thence due East along said Township line to the Point of Beginning. The Madison County segment of the boundary is described as follows: Commencing at the intersection of the Gallatin-Madison County line and the Township line between Township 7 South and Township 8 South, thence due west along said Township line to the east boundary of Range 1 East, thence north along said Range boundary line to the south boundary line of Township 5 South, thence east along said Township line to the Gallatin-Madison county line, thence due south to the Point of Beginning.
	[Back to top]
	Are nonprofits, government agencies, or other "exempt" agencies exempt from the resort tax? No; because the resort tax is charged on the transaction of a sale of a taxable item or service within the boundaries of the District, no single person, agency, or organization is exempt from paying the resort tax. The resort tax is a tax on the transaction, not on the agency.
	[Back to top]
	Does the District audit its tax collectors? Yes. Each year, the BSRAD audits 10 of its tax collectors. Businesses can be selected by the Board, or at random. The businesses undergo "agreed upon procedures" performed by a third-party CPA firm, at the expense of the District.
	[Back to top]
	Resort Tax Collections
	Who collects Resort Taxes? Establishments that sell luxuries, goods or services within the Resort Area District.
	[Back to top]
	Are the tax records and reporting forms submitted to the District confidential? Yes. The records and forms submitted to the District by the tax collecting establishments shall be confidential and not open to public inspection unless so ordered by the District Board pursuant to Article II, Sections 9 and 10, of the Constitution of the State of Montana, a court of competent jurisdiction, or upon the filing of an action in District Court.
	[Back to top]
	How much is the Resort Tax? The Resort Tax is 3% of the retail value of the item(s).
	[Back to top]
	How often are the taxes remitted to the Big Sky Resort Area District? For most collectors, taxes are remitted on a monthly basis and are due no later than the end of the following month. For example, taxes collected in July are to be remitted by the end of August. Beginning July 2010, a quarterly remittance plan option will be available for eligible collectors with a valid registration on file with the District. Quarterly remittances are due no later than the end of the month following the quarter in which they were collected. For example, taxes collected in July, August, and September are to be remitted by the end of October.
	[Back to top]
	Is there a form to complete with remittances? The Monthly Resort Tax Remittance Form must be submitted for each month even if there is a zero balance due. You can also request a Remittance Coupon Book by contacting us. If you qualify for quarterly remittance, the District will contact you in July each year and once you are enrolled, the District will mail you four remittance forms for the year.
	[Back to top]
	Are there penalties and interest for late payments? Yes. Delinquent taxes shall bear interest at the rate of 1% per calendar month, for the delinquent month (12% per annum). 1% for one month late, 2% for two months late, etc. Also, a one-time late fee of $30.00 shall be assessed for each reporting month that is delinquent.
	[Back to top]
	Are there goods and services that are exempt for the Resort Tax? Yes, as listed in the Big Sky Resort Area District's Legal Ordinance NO. 98-01-ORD.
	[Back to top]
	Are non-profits required to collect resort tax on the sale of goods and services otherwise taxable? Yes. Non-profit organizations do not have any statutory exemption from the obligation to collect the resort tax on the goods and services they sell which would otherwise be taxable. The exemption of non-profits from taxation of their revenue established through section 501(c)(3) of the Internal Revenue Code applies only to federal income taxation, not to state taxation.
	[Back to top]
	Are Fundraiser, Charity and Community Service events required to collect resort tax? Yes. When a ticket is sold resort tax must be collected. The exception is when the ticket expressly states that a specified dollar amount of the ticket price goes to charity. Resort tax is not collected on the charitable deduction.
	[Back to top]
	Are the amounts paid for auction and raffle items, which have been donated, taxable? No.
	[Back to top]
	Are vendors at markets required to collect the resort tax on the sale of goods and services otherwise taxable? Yes. Even though markets and fairs are not permanent establishments, all vendors selling taxable goods or services at a market or fair held within the boundaries of the Big Sky Resort Area District are required to collect and remit the resort tax just the same as all permanent establishments within the District.
	[Back to top]
	When a business ships taxable items purchased in Big Sky to an address outside the District should resort tax be collected? Yes. Resort tax must be collected on all taxable items, regardless of their final destination. Similarly, if a customer contacts a business from outside the District and orders a taxable item, tax must be collected on the transaction.
	[Back to top]
	Resort Tax Funding
	How is the Resort Tax appropriated? The revenue derived from the Resort Tax is appropriated annually by the District Board for tourism development, infrastructure facilities, post office services, ambulance and emergency services, public transportation systems, snow plowing and other services that provide for the public health, safety and welfare within the Big Sky Resort Area District.
	[Back to top]
	How does one apply for Resort Tax funding? By completing the Application for Resort Tax Funds which contains all the specifications and deadlines. The Application will be available by March 1st each calendar year.
	[Back to top]
	Are the applications for Resort Tax appropriations confidential? No. All applications for Resort Tax Funds can be viewed by the public by visiting the District office.
	[Back to top]
	If my organization has been appropriated Resort Tax Funds, how do I request payment? By completing the Payment Request forms available on the Resort Tax Funding page and submitting them along with valid invoices or documentation to the District office.
	[Back to top]