Montana Lawmakers Consider Increasing Rental Car Tax

Montana lawmakers are looking at temporarily increasing lodging and car rental taxes, according to a report by Montana Public Radio. The taxes would help keep some government services, which are expected to be cut due to Montana’s projected $227 million budget deficit. 

Senate Bill 6 would double the lodging tax from 3% to 6% and increase the tax on rental vehicles from 4% to 10%, according to the report. Sen. Dick Barrett, sponsor of this bill, said that these taxes were selected by Gov. Steve Bullock’s administration to decrease the tax impact on Montanans. The tax would be largely paid by non-residents, says the report.

Opponents include the Montana Retail Association, Montana Taxpayers Association, and Montana Chamber of Commerce. Some who were against the bill said they might support a smaller tax increase for lodging and rental vehicles, according to the report.

Click here for the full Montana Public Radio report.