Tobacco Product Taxes
Before a wholesaler or retailer sells any tobacco products in Montana, they should assure that these products are approved for sale in Montana. Review the following directories for a list of tobacco products that are approved for sale in Montana.
- Department of Justice Tobacco Sales and Directory - This web site and directory will provide you with the list of tobacco products that are approved by the Department of Justice to be sold in the State of Montana.
- Department of Justice Reduced Ignition Propensity Cigarettes (Fire Safe) Standards and Directory - This web site and directory will provide you with information on fire safety standards for cigarettes and a list of cigarettes that are approved by the State Fire Marshall to be sold in the State of Montana.
- Department of Revenue Little Cigar Sales and Directory - This web site and directory will provide you with information on the classification of "little cigars" as cigarettes and a directory listing which "little cigars" are classified as cigarettes for tax purposes.
Cigarette Tax
Montana cigarette wholesalers are required to 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 and it is included in the retail price of the cigarettes.
A tax decal must is required to be affixed to each package by a licensed wholesaler. The tax decal can be purchase only by a licensed wholesaler at face value less an allowance to defray the costs of affixing the 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 to a state special revenue fund for 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 (16-11-101 through 16-11-159, MCA; 42.31.101 through 43.31.3), ARM and 42.31.301 through 42.31.350, ARM)
Other Tobacco Products Tax
Moist Snuff Tobacco Products 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. Moist snuff tobacco products are taxed at a rate of $0.85 per ounce, based upon the listed net weight of the package. The tax is collected monthly from a wholesaler or distributor of the product. The wholesaler or distributor is entitled to a 1.5% allowance for collection and administrative expenses at the time the tax return and payment is remitted to the Department of Revenue.
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. (16-11-101 through 16-11-159, MCA; 42.31.201 through 42.31.221, ARM)
Tobacco Products Tax
All tobacco products, except cigarettes, and moist snuffs are subject to a tax of 50% of its wholesale price. The tax is collected monthly from a wholesaler or distributor of the product. The wholesaler or distributor is entitled to a 1.5% allowance for collection and administrative expenses at the time the tax return and payment is remitted to the Department of Revenue.
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. (16-11-101 through 16-11-159, MCA; 42.31.201 through 42.31.221, ARM)
Tobacco Products Retail License
Retailer's license: $5
A person is required to obtain a $5 annual retailer's license to sell tobacco products (on premises) at retail, whether over the counter, by vending machine, or otherwise. A retail vendor who operates nine or fewer vending machines is considered a retailer and pays an annual license fee of $5. All revenues are deposited to the General Fund. (16-11-120 through 16-11-125, MCA)
Contact the Department of Revenue, One-Stop Licensing program toll free at (866) 859-2254 or (406) 444-6900 in Helena to register your business and obtain a retailer's license.
Tobacco Products Wholesaler And Subjobber Licenses
Wholesaler's license: $50
Subjobber's license: $50
Tobacco Product Vendor's license: $50 (ten or more vending machines)
A license fee is imposed on a cigarette wholesaler, subjobber and vendor who operates ten or more vending machines in Montana. The annual license fee is $50. All revenues are deposited to the General Fund. (16-11-120 through 16-11-125, MCA)
Contact the Department of Revenue, One Stop Licensing program toll free at (866) 859-2254 or (406) 444-6900 in Helena to register your business and obtain a retailer's license.
