Tobacco Product Taxes
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Important note: You may not sell the products below unless they are listed on the Department of Justice Tobacco Sales and Directory.
Cigarette Tax
Effective January 1, 2005, Montana cigarette wholesalers must pre-collect a tax
of $1.70 per package of 20 cigarettes (8.5¢ per stick of cigarette). The tax is
proportionally adjusted for different size packages. This tax applies to all
cigarettes sold in Montana. It is included in the retail price of the
cigarettes.
A tax decal must be affixed to each package by a licensed
wholesaler. The tax decal can only be purchase by a licensed wholesaler at face
value less allowances to defray costs of affixing insignias and pre-collecting
the tax on behalf of the State of Montana.
The cigarette
tax revenues, after tribal revenue sharing payments, are distributed 8.3% or $2
million, whichever is greater the state special revenue fund to the credit of
the department of public health and human services for the operation and
maintenance of state veterans' nursing homes; 2.6% in the long-range building
program account; 44% in the state special revenue fund to the credit of the
health and medicaid initiatives account; and the remainder to the state General Fund (MCA 16-11-111,
119)
Tax forms obtained from and taxes collected by the Department of Revenue.
Moist Snuff Tobacco Product Tax
Moist snuff is any finely cut, ground, or powdered tobacco, other than dry
snuff, that is intended to be placed in the oral cavity. Effective January 1, 2005,
moist snuff tobacco products are subject to a tax of 85¢ per ounce, based upon
the net weight of the package listed by the manufacturer. The tax is collected
monthly from the wholesaler or distributor of the product, less a 1.5%
defrayment for collection and administrative expenses.
Tobacco products tax
revenues, after tribal revenue sharing payments, are distributed as follows:
one-half in the state General Fund and
one-half in the state special revenue fund account for health and
medicaid initiatives. (MCA 16-11-202, 206)
Tax forms obtained from and taxes
collected by the Department of Revenue.
Tobacco Product Tax
Effective January 1, 2005, all tobacco products, excluding cigarettes, and moist
snuffs are subject to a tax of 50% of their wholesale price. The tax is
collected monthly from the wholesaler or distributor of the product, less a 1.5%
defrayment for collection and administrative expenses.
Tobacco products tax
revenues, after tribal revenue sharing payments, are distributed as follows:
one-half in the state General Fund and
one-half in the state special revenue fund account for health and
medicaid initiatives. (MCA 16-11-202, 206)
Tax forms obtained from and taxes
collected by the Department of Revenue.
Tobacco Product
Tobacco Product Retail License
Retailer's license: $5
A person must obtain a
license to sell tobacco product (on premises) at retail whether over the counter,
by vending machine, or otherwise. Retailer vendors (possessing nine or fewer machines)
pay an annual license fee of $5. (MCA 16-11- 120)
Registration and
Collection of fees is done by the Department of Revenue, One-Stop Licensing
program.
Tobacco Product Wholesaler And Subjobber Licenses
Wholesaler's license: $50
Subjobber's license: $50
Tobacco
Product Vendor's license: $50
(ten or more machines)
A license
fee is imposed on cigarette wholesalers, subjobbers and vendors possessing ten
or more machines in Montana. The annual license fee is $50.
Registration and Collection of fees is done by the
Department of Revenue, One-Stop
Licensing
program.
