Credit card processing and merchant services in Billings, MT
Most Billings sales carry no sales tax, but hotel rooms carry 8% in state lodging taxes, businesses operating in the city owe an annual city business tax, and retail stores must accept cash.
Billings had 121,239 residents in the Census Bureau's July 2025 estimate, and most of its shops ring up sales with no tax line at all, because Montana doesn't have a general sales tax. That doesn't make every payment in the city tax-free, and it doesn't let you skip the city's paperwork.
Lodging is the big exception. Montana's lodging facility sales and use tax is 8% in all, a 4% sales tax plus a 4% use tax on what the guest pays for accommodations. A $150 room night carries $12. File and pay on time and the Department of Revenue lets you keep a 5% vendor allowance against the 4% sales tax, though not against the use tax. Rental cars carry their own 4% tax on base rental charges for rentals under 30 days.
The City of Billings has an annual business tax of its own. Its code makes everyone conducting or carrying on a business, occupation, profession or trade within the city subject to it, and it names transient vending and door-to-door sales too. You pay it each year on or before the anniversary of your original payment. Ten days past that date the tax is late, and the code adds a penalty of 50% of the tax plus interest at 1% a month.
Montana's cash law applies at Billings counters too. Under MCA 30-14-228, a retail establishment generally has to accept U.S. currency, though one register that takes cash is enough. Surcharges have no state cap beyond Visa's and Mastercard's rules. Our Montana page covers both.
With no sales tax to configure, your processing rate is the payment cost left to manage. Interchange-plus pricing shows it line by line, and a free statement review tells you what you're paying now.
Rules that matter in Billings
City of Billings annual business tax
Article 13-400 of the Billings City Code makes every person conducting, transacting or carrying on a business, occupation, profession or trade within the city, including transient vending and door-to-door sales, subject to an annual business tax.
The tax is due each year on or before the anniversary date of the original payment. It becomes late 10 days after the due date, and the code then adds a penalty equal to 50% of the tax, plus interest at 1% a month. The tax receipt has to be displayed at the place of business.
Source: Billings City Code, Article 13-400: Taxation (Municode)
Lodging and rental vehicle taxes
Montana's lodging facility sales and use tax totals 8%: a 4% sales tax and a 4% use tax on the amount the purchaser pays for accommodations. Sellers who file and pay on time keep a 5% vendor allowance against the 4% sales tax, with no allowance against the use tax.
Vehicles rented for less than 30 days carry a 4% tax on base rental charges, and vendors who file on time keep an allowance of 5% of the tax.
Sources: Montana Department of Revenue, Lodging facility sales and use tax; Montana Department of Revenue, Rental vehicle tax
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Common questions
Do Billings hotels charge tax if Montana has no sales tax?
Yes. Montana's lodging facility sales and use tax adds 8% to what a guest pays for accommodations, split between a 4% sales tax and a 4% use tax. A $200 stay carries $16. Set your booking system to add it to every folio, and file on time to keep the 5% vendor allowance on the sales tax half.
When is the Billings city business tax due each year?
On or before the anniversary of your original payment. Billings' code treats the tax as late 10 days after that due date and then adds a penalty equal to 50% of the tax, plus interest at 1% a month. Put the anniversary in your calendar the day you first pay, and keep the receipt displayed where you do business.
Can a Billings store go card-only?
Generally not at a counter where someone takes payment in person. Montana Code 30-14-228 requires retail establishments to accept U.S. currency, with exceptions such as a qualifying cash-to-prepaid-card device. With several registers, one that takes cash is enough. Card-only still works for sales you take through an online checkout, since the rule is about in-person payment.
Is there a tax on car rentals in Billings?
Yes, on short rentals. Montana charges 4% on base rental charges for vehicles rented for less than 30 days without a driver and designed to carry 15 or fewer passengers. Vendors who file on time keep a 5% allowance. Build the tax into your booking system so the final card charge at return includes it.
With no sales tax to manage, what should a Billings business check on its statement?
Your effective rate: total processing fees divided by card sales. Then look at the processor's markup over interchange, monthly fees and any PCI charges. Our guide to reading a merchant statement walks through each line, or send us a statement for a free statement review.
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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