Big Sky Short-Term Rental Regulations

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Permit & Licensing

Public Accommodations License

This permit type does not require primary residence. Zoning restriction: Permitted Use (allowed by right) only within these Gallatin Canyon/Big Sky sub-districts: R-MH 3000, R-MH 6000, R-MF 6500, R-SF 7500, R-SF 11000, RC-SF, C-I, CC, TCC, TCR, R-B, R. Not an authorized use in any other Gallatin Canyon/Big Sky sub-district.

Application Process

Owners can request a written zoning determination via the Property Information Request Form (checking 'Tourist License (Vacation Rental)' and writing 'short-term rental' under Proposed Project) submitted to the Gallatin County Planning Department. Separately, a Public Accommodations License must be obtained from the Gallatin City-County Health Department for public health/sanitation review. No online self-service permit portal, inspection requirement, or processing-time estimate is stated in the sources.

Tax Obligations

Combined rate: 12% of gross rental income.

Collection: State lodging tax (8%): short-term rental marketplaces and online hosting platforms are required to register with the Montana Department of Revenue and to collect, report, and remit the tax on facilitated bookings (Senate Bill 52); otherwise the host self-remits. Local resort tax (4%): local businesses within the Big Sky Resort Area District collect and remit the resort tax directly to the District, retaining 5% of the amount collected for administrative processing.

Filing: State lodging tax: quarterly, due the last day of the month following the calendar quarter (April 30, July 31, October 31, January 31), filed with the Montana Department of Revenue. Resort tax filing cadence with the Big Sky Resort Area District is not stated in the available sources.

Rental Limits

Big Sky does not impose an annual cap on the number of nights you can rent. Each individual stay must be under 30 consecutive days.

Zoning & Restrictions

Gallatin County has 22 zoning districts outside municipalities; only Gallatin Canyon/Big Sky and Hebgen Lake mention short-term rentals in their regulations. Within Gallatin Canyon/Big Sky (which covers the Big Sky area), STR is a Permitted Use (by right) in sub-districts R-MH 3000, R-MH 6000, R-MF 6500, R-SF 7500, R-SF 11000, RC-SF, C-I, CC, TCC, TCR, R-B, R. If a Gallatin County zoning district's regulation does not specifically mention STR as an allowed use, STR is not permitted there. Properties in unzoned areas of the county face no Planning Department zoning restriction on STR use, though the health-department license requirement still applies.

Insurance & Safety

Insurance

Big Sky does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Penalties for Non-Compliance

Advertising an STR for purposes other than lodging (e.g., weddings, concerts, fundraisers) is treated as prima facie evidence of the owner's or agent's intent to violate the regulation and may trigger enforcement action under the Gallatin County 'Part 1' Zoning Administrative Regulation. For repeated and unresolved violations, Gallatin County may pursue available enforcement remedies, including revocation of the Conditional Use Permit and/or fines.

Platform Requirements

Short-term rental marketplaces and online hosting platforms are required to register with the Montana Department of Revenue and to collect, report, and pay the state Lodging Facility Sales and Use Tax on any sale they facilitate (Senate Bill 52).

Compliance Checklist

Follow these steps to legally operate a short-term rental in Big Sky:

1. Apply for Public Accommodations License. Submit application + $334 fee.
2. Register for tax accounts. Set up lodging tax accounts with Montana Department of Revenue (state lodging tax); Big Sky Resort Area District (local resort tax).
3. Collect and remit taxes. 12% on all bookings.
4. Renew annually. $40 (State Issued Annual Public Accommodation License fee for the 1-10 unit tier, payable to MDPHHS; billed annually) renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Big Sky?

Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Big Sky requires a Public Accommodations License.

How much does a short-term rental permit cost in Big Sky?

A Public Accommodations License in Big Sky costs $334 per year.

Does Big Sky require a short-term rental to be your primary residence?

No. Big Sky allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.

How many days a year can you short-term rent in Big Sky?

Big Sky does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Big Sky?

Short-term rental stays in Big Sky are subject to a combined 12% in lodging taxes. This combines 4% Big Sky Resort Area District Resort Tax + 4% Montana Lodging Facility Use Tax + 4% Montana Lodging Facility Sales Tax. The host is responsible for collecting and remitting them.