How Billings Handles Home Business: A Practical Guide

Billings maintains 114 local ordinances across all categories, and 2 of those deal specifically with home business. Here is a breakdown of what the city actually requires, what is prohibited, and where Billings falls on the strict-to-permissive spectrum compared to other cities.

Zoning & Home Occupation Permits

Billings requires home-based businesses to register and pay the city's business, occupation and profession tax: a flat $20 annual fee for home occupations, well below general business rates, with a receipt displayed on-site.

Key details: Home occupation tax: $20 flat, per year. General business tax: $55–$215, tiered by revenue. Late penalty: 50% + 1%/month interest. Receipt: Must be displayed on-site. Violation: Municipal infraction, Sec. 18-1304.

Late payment (10+ days past due) draws a 50% penalty plus 1% monthly interest (Sec. 13-435); operating without paying is a municipal infraction under Sec. 18-1304, with each day a separate civil offense (Sec. 13-436).

Home Daycare

Billings allows family day-care homes (3-6 kids) and group day-care homes (7-12 kids) by right in residential zones under Sec. 27-1005, as long as the operator holds a Montana DPHHS child care license.

Key details: Family day-care home size: 3 to 6 children. Group day-care home size: 7 to 12 children. Licensing authority: Montana DPHHS. Zoning status: Permitted by-right, most districts. Governing section: BMCC Sec. 27-1005(A).

Operating without the required DPHHS license, or in a way inconsistent with the zone's site standards, is a zoning-code violation: a misdemeanor under Sec. 27-1704, with each day of continued violation a separate offense, plus municipal-infraction civil penalties under BMCC 18-1300.

The rules around home daycare in Billings lean permissive, but that does not mean anything goes.

The Bottom Line

Billings's home business rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Billings is broadly strict or permissive.

Keep in mind that Billings can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.