Overview: STRs in Roundup, MT — Explicit Answer

Short-term rentals are allowed in Roundup, MT. Under current city policy and planning documents, short-term rentals are treated as standard “buildings for lease or rent” and are not subject to a city-specific permit, license, or unique STR regulations. The City’s Growth Policy explicitly states: “Because the City has a zoning code that governs land use, it does not need to develop any adopted regulations for the leasing or renting of buildings.” That means an STR is treated like any rental property—so long as it complies with zoning and general city, county, and state laws.

Note: If you operate an STR that provides lodging for fewer than 30 days in a single stay and charge guests, you must comply with Montana lodging taxes (state-level). Local lodging tax may also apply at the county level (see “Taxes” below).

How to Start a Short-Term Rental Business in Roundup, MT

1) Confirm Zoning and Land-Use Compliance

• The City’s Zoning Ordinance (adopted 2021) designates eight districts. Most allow rental of residential units. For properties located within the Central Business District (CBD) or Highway Business District (HB), verify that lodging is a permitted or conditional use for your address.
• Downtown properties are targeted for revitalization and business support; investors should be aware of the Downtown Roundup Urban Renewal District (URD) and Tax Increment Financing (TIF) rules that can affect façade, streetscape, or redevelopment incentives.
• Be mindful of Flood Plain (FP) zone constraints; parts of the city lie within the Special Flood Hazard Area (SFHA). If within or adjacent to the floodplain, you may require a Floodplain Permit and must follow flood-resistant construction standards.

2) Structure Your Business

• Choose an entity (LLC, sole proprietor, etc.) and obtain an IRS EIN.
• Open a separate bank account for the STR.

3) Register with Local Government (Business Occupation Tax)

• Roundup assesses a Business Occupation Tax on businesses operating within city limits. STR operators should register as a business and pay any applicable tax. The Compliance Officer (Code Enforcement/Zoning) manages business registrations.
• This step is required even if you do not need an STR-specific city license.

4) Handle Lodging Taxes

• If your STR rents for fewer than 30 days in a single stay, you must collect and remit Montana lodging taxes (4% state lodging facility tax). A local lodging tax may also apply through Musselshell County; verify whether a county lodging tax is in effect.
• Register with the Montana Department of Revenue for lodging tax remittance and any applicable sales/use tax filings.

5) Insurance and Safety

• Obtain appropriate property and liability coverage that reflects short-term rental use.
• Meet applicable state and local safety standards. If in a flood-prone area, discuss flood insurance with your carrier and the City Floodplain Administrator.

6) Hosting and Operations

• Establish a clear guest policy (length of stay, occupancy, quiet hours, parking, etc.).
• Comply with health, fire, and safety requirements as applicable to lodging.
• If remodeling, ensure permits and inspections meet city building and zoning standards.

7) Marketing

• The City has developed a VisitRoundup website and supports tourism branding. The Downtown area benefits from the Montana Main Street Program and Wayfinding Plan. Align marketing with local initiatives that showcase Roundup’s historic character, river access, and proximity to Billings.

Required Documents, Permits, Licenses, and Guidelines

City/County

• Business Occupation Tax Registration: Register as a business with the City; remit any assessed occupation tax annually.
• STR Use Confirmation: Not a “permit,” but verify with the Zoning Administrator that your STR use is consistent with the property’s zoning district.
• Floodplain Permit (if applicable): If within or adjacent to the SFHA, contact the Floodplain Administrator for development/construction permits.
• Building Permits: For any remodel or structural changes (including conversions), obtain building permits and pass inspections.

State (Montana)

• Lodging Tax Registration: Register with the Montana Department of Revenue for the 4% lodging facility tax if renting for fewer than 30 days.
• Sales/Use Tax Filings (if applicable): Register if any other tax obligations arise.

County (Musselshell)

• County Lodging Tax: Confirm whether Musselshell County imposes a local lodging tax; if so, collect and remit.
• Sheriff/County Coordination: For safety and code enforcement, be aware county services extend to the city under interlocal agreements.

Industry/Best Practices

• Association Memberships: Consider joining rental host communities or associations; align your operation with the Montana Main Street Program values if operating downtown.
• Risk Management: Liability coverage, guest screening, and emergency procedures.

Specific Regulations for STRs in Roundup, MT (City, County, State)

City of Roundup

• No city-specific STR ordinance requiring permits or licenses beyond business registration and zoning compliance.
• Growth Policy BLR Statement: “Because the City has a zoning code that governs land use, it does not need to develop any adopted regulations for the leasing or renting of buildings.”
• Zoning: STRs must align with permitted uses in R-1, R-2, CBD, HB, LI, HI, P, FP districts. Confirm with the Zoning Administrator for lodging use specifics in CBD/HB.
• Floodplain: The City adopted Floodplain Regulations (2019). STR owners in flood-prone areas must comply with floodplain development standards.
• Downtown Revitalization: Downtown properties may benefit from TIF/URD incentives but must meet program guidelines.

Musselshell County

• Lodging Tax: Operators should verify whether the county collects a local lodging tax for STRs. If applicable, register and remit accordingly.
• Sheriff and EMS: County sheriff and EMS serve the city; ensure safety practices and coordination with county emergency services.

State of Montana

• Lodging Facility Tax (4%): Due for STRs renting fewer than 30 days. Register with the Department of Revenue.
• Statutory Snapshot: Municipalities cannot require a permit or license for STRs with 30 or more consecutive days of rental. Roundup does not currently have an STR-specific permit regime. The city’s approach reflects a reliance on zoning and general rental regulations rather than unique STR rules.
• Health and Safety: Comply with applicable building and life safety codes.

Contacts (Local Authority in Charge of STRs and Planning)

City of Roundup (primary contacts for zoning, code enforcement, and floodplain)

• Phone: +1 (406) 323-1407
• City Hall Address: 320 1st Street West, Roundup, MT 59072
• Website: www.roundupmontana.net

Compliance Officer (Code Enforcement/Zoning) and Floodplain Administrator

• Handle business registrations, zoning use determinations, code enforcement, and floodplain permits.
• Use the City Hall main contact above to reach the appropriate officer.

Montana Department of Revenue (lodging tax registration)

• Phone: +1 (406) 444-6900
• Website: mtrevenue.gov

Musselshell County (verify lodging tax and county coordination)

• Phone: +1 (406) 323-1104
• Address: 26 Main Street, Roundup, MT 59072
• Website: www.musselshellcounty.org

Source Links

• City of Roundup Growth Policy (2024) (primary planning document including BLR statement, floodplain regulations, housing and land-use goals): www.roundupmontana.net/uploads/6/9/4/0/69402541/roundup-_draft_gp-working_copy_5.3.24.pdf
• City of Roundup Official Website: www.roundupmontana.net
• Musselshell County Official Website: www.musselshellcounty.org
• Montana Department of Revenue (lodging tax and tax registration): mtrevenue.gov

Practical Investor Notes

• Confirm zoning use (R-1/R-2 vs CBD/HB) for your specific property with the Zoning Administrator before listing.
• If your property is in or near the Special Flood Hazard Area, plan for floodplain development rules and consider flood insurance.
• Verify whether Musselshell County assesses a local lodging tax; if so, register and remit to the county.
• Register your STR business for city business occupation tax; budgeting an annual cost is prudent.
• Align your STR’s look, feel, and operations with the City’s historic downtown goals and Wayfinding Plan to benefit from local marketing and incentives.