Montana Administrative Code

42.14.303 EXEMPT ACCOMMODATIONS AND ACCOMMODATIONS SALES The following accommodations are exempt from the lodging facility sales and use tax: An occupant at a health care facility as that term is defined in 50-5-101, MCA is not required to pay the lodging facility sales and use t…

42.14.304 EXEMPT LODGING SALES (REPEALED) Authorizing statute(s): 15-65-102, 15-68-801, MCA Implementing statute(s): 15-65-101, 15-65-111, 15-68-101, 15-68-102, 15-68-206, MCA History: TEMP, NEW, 1987 MAR p. 1637, Eff. 9/25/87; AMD, 1999 MAR p. 2904, Eff. 12/17/99; AMD, 2003 MAR …

42.15.1001 DEFINITIONS The following definitions apply to terms used in this subchapter: "ABLE account" or "account" mean the same as "account," which is defined in 53-25-103, MCA. "Achieving a better life experience (ABLE) program" or "program" means the same as "program," which…

42.15.1002 DEDUCTION FOR CONTRIBUTIONS TO AN ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT In addition to the individuals listed in 15-30-2120(6), MCA, the following contributors identified in 53-25-117, MCA, are also allowed a deduction from Montana taxable income for a cont…

42.15.1003 ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT RECAPTURE TAX There is a recapture tax, payable by a designated beneficiary, regardless of residency status, on recapturable withdrawals from an ABLE account. Recapturable withdrawals and the amount of the recapture tax…

42.15.1004 VERIFICATION OF ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT CONTRIBUTIONS AND WITHDRAWALS Each program manager shall submit a report to the department via the state of Montana's secure file transfer service (or functional equivalent), by February 28 following the…

42.15.101 DEFINITIONS (REPEALED) Authorizing statute(s): Sec. 1-1-215 and 15-30-305, MCA Implementing statute(s): Sec. 15-30-101 and 15-30-105, MCA History: Eff. 12/31/72; AMD, 1993 MAR p. 571, Eff. 4/16/93; AMD, 1996 MAR p. 2605, Eff. 10/4/96; REP, 2002 MAR p. 3708, Eff. 12/27/0…

42.15.102 CHANGE OF DOMICILE (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; AMD, 1993 MAR p. 571, Eff. 4/16/93; REP, 2004 MAR p. 3147, Eff. 12/17/04.

42.15.103 DOMICILE OF WIFE AND CHILDREN (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; REP, 1993 MAR p. 571, Eff. 4/16/93.

42.15.104 PERMANENT PLACE OF ABODE (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; AMD, 1982 MAR p. 10, Eff. 1/15/82; AMD, 1993 MAR p. 571, Eff. 4/16/93; REP, 2004 MAR p. 1965, Eff. 8/20/04.

42.15.105 INSPECTION OF INFORMATION RETURNS (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-303, MCA History: NEW, 1986 MAR p. 51, Eff. 1/17/86; REP, 2004 MAR p. 3147, Eff. 12/17/04.

42.15.106 INCOME TAX SURCHARGE (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-108, MCA History: NEW, 1987 MAR p. 1639, Eff. 9/25/87; AMD, 1990 MAR p. 120, Eff. 1/12/90; REP, 2004 MAR p. 1965, Eff. 8/20/04.

42.15.107 DEFINITIONS "Part-year resident" means an individual who either was a Montana resident at the start of the year that established residency in another state during the year, or who was a nonresident at the start of the year that established residency in Montana during th…

42.15.108 DETERMINING TAX LIABILITY A person required to file a Montana Individual Income Tax Return must determine their Montana income tax liability in accordance with the applicable Montana statutes and administrative rules. All income, except income specifically exempted in T…

42.15.109 RESIDENCY As provided in 15-30-2101, MCA, an individual may be a resident for Montana individual income tax purposes if the individual is domiciled in the state or maintains a permanent place of abode in the state. Section 1-1-215, MCA, sets forth rules for determining …

42.15.110 TAXATION OF PART-YEAR RESIDENTS AND NONRESIDENTS Part-year residents and nonresidents are subject to the same filing requirements as residents unless otherwise expressly exempted in statute. Part-year residents and nonresidents must include all Montana source income on …

42.15.119 ALTERNATIVE TAX A nonresident taxpayer whose only activities in Montana consist of making sales and do not include owning or renting real or tangible personal property and whose dollar volume of gross sales made in Montana during the taxable year does not exceed $100,00…

42.15.120 APPORTIONABLE AND NONAPPORTIONABLE INCOME - APPORTIONMENT OR ALLOCATION - INDIVIDUALS, ESTATES, AND TRUSTS For purposes of the reporting requirements for individuals, trusts, and estates that have Montana apportionable or nonapportionable income and determining their Mo…

42.15.125 NET LONG-TERM CAPITAL GAINS-CALCULATION OF TAX FOR PART-YEAR RESIDENTS AND NONRESIDENTS The tax on net long-term capital gains recognized by nonresidents equals the tax on them, calculated under 15-30-2103(2), MCA, multiplied by the ratio of net long-term capital gains …

42.15.1501 DEFINITIONS The following definitions apply to this subchapter: "Armed forces" means the same as the term provided in 10 USC § 101 and includes the Army, Navy, Marine Corps, Air Force, Space Force, or Coast Guard. For the purposes of administering these rules, the term…

42.15.1510 WORKING ARMED FORCES/MILITARY RESIDENT RETIREE TAXABLE INCOME EXCLUSION A Montana resident who retired from the armed forces is entitled to an exclusion from taxable income received after December 31, 2023, as provided in 15-30-2120, MCA, in an amount equal to the less…

42.15.1511 NONRESIDENT MILITARY SERVICEMEMBERS Nonresident members of the armed forces living in the state solely for compliance with military orders do not become residents and their military compensation is not Montana source income. Nonresident spouses who move to Montana sole…

42.15.1512 RESIDENT MILITARY SALARY EXCLUSION The following items of military compensation received by a resident military servicemember are exempt from Montana income tax: basic, special, and incentive pay received for serving on active duty as a member of the armed forces; basi…

42.15.201 ACCOUNTING PERIODS (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; AMD, 1982 MAR p. 10, Eff. 1/15/82; REP, 2004 MAR p. 3147, Eff. 12/17/04.

42.15.202 TAXABLE YEAR DEFINED (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; REP, 2002 MAR p. 3708, Eff. 12/27/02.

42.15.203 YEARS DEFINED (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; REP, 2002 MAR p. 3708, Eff. 12/27/02.

42.15.204 DEFINITIONS The following definitions apply to this subchapter: "Obligation" means, for the purposes of determining the applicability of the exclusion of interest income, an interest-bearing financial instrument of the United States government, a state, or a political s…

42.15.205 REFUNDS OF FEDERAL INCOME TAX (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, 15-30-2131, MCA History: NEW, 2007 MAR p. 485, Eff. 4/13/07; AMD, 2008 MAR p. 178, Eff. 2/1/08; AMD, 2010 MAR p. 1088, Eff. 4/30/10; REP, 202…

42.15.206 ADDITIONS AND SUBTRACTIONS FOR MARRIED TAXPAYERS FILING SEPARATE RETURNS (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 2008 MAR p. 178, Eff. 2/1/08; AMD, 2010 MAR p. 1088, Eff. 4/30/10; REP, 2025 MAR…

42.15.212 PAID AND RECEIVED DEFINED (REPEALED) Authorizing statute(s): Sec. 15-30-305, MCA Implementing statute(s): Sec. 15-30-101, MCA History: Eff. 12/31/72; REP, 2002 MAR. p. 3708, Eff. 12/27/02.

42.15.213 SMALL BUSINESS CORPORATION DIVIDEND AND CAPITAL GAIN EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-33-105, MCA Implementing statute(s): 15-33-106, MCA History: NEW, 2004 MAR p. 3147, Eff. 12/17/04; AMD, 2010 MAR p. 1088, Eff. 4/30/10; AMD, 2013 MAR p. 178, …

42.15.215 SENIOR INTEREST INCOME EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 1982 MAR p. 10, Eff. 1/15/82; AMD, 1992 MAR p. 2555, Eff. 11/26/92; AMD and TRANS, from ARM 42.15.113, 2004 MAR p. 3147,…

42.15.216 EXCLUSION OF INTEREST ON OBLIGATIONS Interest on United States government obligations, as defined in ARM 42.15.204, and mutual fund dividends attributable to that interest, to the extent included in federal taxable income, are exempt from Montana income tax. Interest on…

42.15.217 DISABILITY INCOME EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 1985 MAR p. 1771, Eff. 11/15/85; AMD and TRANS, from ARM 42.15.115, 2004 MAR p. 3147, Eff. 12/17/04; AMD, 2010 MAR p. 1088, E…

42.15.218 CAPITAL GAIN EXCLUSION FOR PRE-1987 SALES (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, 15-30-2111, MCA History: NEW, 1987 MAR p. 1640, Eff. 9/25/87; AMD and TRANS, from ARM 42.15.117, 2004 MAR p. 3147, Eff. 12/17/04;…

42.15.219 PENSION AND ANNUITY INCOME EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 1987 MAR p. 1801, Eff. 10/16/87; AMD, 1992 MAR p. 2777, Eff. 12/25/92; AMD and TRANS, from ARM 42.15.118, 2004 MAR p…

42.15.220 EXEMPTION OF CERTAIN INCOME OF ENROLLED TRIBAL MEMBERS Wages are exempt from individual income tax when: the individual is an enrolled tribal member of the governing tribe of the reservation on which the enrolled tribal member works and resides; and the wages are derive…

42.15.221 DEPENDENT CHILD UNEARNED INCOME EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 1985 MAR p. 1633, Eff. 11/1/85; AMD, 1994 MAR p. 1720, Eff. 6/24/94; AMD and TRANS, from ARM 42.15.308, 2004 MA…

42.15.222 RAILROAD RETIREMENT AND SOCIAL SECURITY BENEFIT EXCLUSION (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: NEW, 1985 MAR p. 1916, Eff. 12/13/85; AMD, 1992 MAR p. 2555, Eff. 11/26/92; AMD, 1996 MAR p. 2605, E…

42.15.223 DEDUCTIONS FOR SALE OF LAND TO A BEGINNING FARMER A deduction from federal taxable income is allowed for each sale of 80 acres or more if approved by the agricultural loan authority. The deduction is the amount which would have to be included in federal taxable income a…

42.15.301 WHO MUST FILE RETURNS The following personsmust file an individual income tax return: every resident who is required to file a federal income tax return; every nonresident with Montana source income, including net losses, who is: not eligible for the nonresident exclusi…