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Bozeman classifies STR into three types: Type 1 Owner-Occupied (allowed in all residential zones), Type 2 Vacation Home (host's primary residence with occasional non-hosted use), and Type 3 Investor / Non-Owner-Occupied (restricted to specific commercial and mixed-use overlay zones — heavily limited in single-family residential). The 2021 ordinance + 2023 amendments have progressively tightened Type 3 eligibility in response to housing-affordability concerns.
Type 1 (Owner-Occupied) allowed in all residential zones (R-1, R-2, R-3, R-4, R-5). Type 3 (Investor) restricted to B-1, B-2, B-2M, B-3 Commercial and NEHMU/UMU Mixed-Use overlay districts — most single-family residential parcels cannot operate as Type 3. Gallatin County (unincorporated areas around Bozeman) has its own STR framework — confirm parcel jurisdiction. Big Sky is a separate jurisdiction with its own rules (currently very permissive).
Operators must hold a short-term rental permit before listing. See the official permit portal.
Bozeman Community Development administers the program with annual renewal. Application requires safety inspection, proof of insurance, designated local contact (within 30 minutes drive), and parking plan. Operating without a permit: $500+ administrative penalty + back-tax + cease-rental order. Type 1 → Type 2 → Type 3 reclassification requires re-application; the city has been tightening Type 3 issuance in recent ordinances.
Combined short-term lodging tax in Bozeman is approximately 9.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).
Montana State Lodging Facility Use Tax 7% + Montana State Sales Tax 0% (none) + Bozeman city resort tax 2% — combined ~9% on transient lodging
Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.
STR regulations vary by jurisdiction. Compare Bozeman against nearby markets.