Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.15 - INCOME TAX
Subchapter 42.15.1 - General Provisions
Rule 42.15.119 - ALTERNATIVE TAX

(1) 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 $100,000, may elect to pay a tax of 1/2% on the gross volume of sales made in Montana during the taxable year. Such tax is in lieu of the tax based upon net income as described in 15-30-2101(1), MCA.

(2) The election to pay the alternative tax is made by filing a return on Form 2, reporting the dollar amount of Montana gross sales and paying a tax determined on the basis of 1/2% of the amount of such sales. The gross volume of sales made in Montana must be determined according to the provisions of paragraph 16 and 17 of Article IV of the Multistate Tax Compact. A statement must be attached to the return to the effect that the taxpayer's only activities in Montana consist of making sales and do not include owning or renting real property or tangible personal property.