IPCPR Legislative | Montana

Montana

montana

Montana State Contact Information

Montana Department of Revenue
Citizen Services Call Center
(406) 444-6900

Montana Commissioner of Political Practices
(406) 444-2942
cpphelp@mt.gov

Taxation in Montana

 

Montana imposes a tax on wholesalers of all tobacco products other than cigarettes. The tax is pre-collected and paid by a wholesaler to the Department of Revenue upon sale to a Montana retailer. Retailers who purchase tobacco products for resale on which the tobacco products tax has not been collected and paid are liable for payment of the tax. The Department of Revenue adopted rules that classify certain little cigars as cigarettes for tax purposes.

 

Mont. Code Ann. § 16-11-111(7-9): Cigarette, tobacco products, and moist snuff sales tax; exemption for sale to tribal member

 

Mont. Admin Code r. 42.31.206, 42.31.207, 42.31.208

 

Department of Revenue staff reported that Montana localities do not levy additional taxes on tobacco products.

The tax on tobacco products other than cigarettes and moist snuff is 50% of the wholesale price. The tax on moist snuff is $0.85 cents per ounce based on the net weight of the package listed by the manufacturer and a proportional tax for each fractional part of an ounce.

 

Mont. Code Ann. § 16-11-111(7): Cigarette, tobacco products, and moist snuff sales tax; exemption for sale to tribal member

Every wholesaler, tobacco products vendor, subjobber, and retailer who acquires non-tax paid tobacco products must submit an Other Tobacco Products and Moist Snuff Tax Return (Form TP-101) on or before the 10th day of each month.

 

Mont. Code Ann. § 16-11-128: Tobacco product sales reporting requirements

 

Tax returns may be filed through the Montana Department of Revenue Taxpayer Access Point (TAP) at https://tap.dor.mt.gov/_/.

Montana Department of Revenue: Business Forms
https://revenue.mt.gov/home/businesses

 

Cigarette and Tobacco Products Taxes

 

Form TP-101: Tobacco Products Tax – Other Tobacco Products and Moist Snuff Tax Return
https://revenue.mt.gov/Portals/9/businesses/cigarettetobacco_products/TP101.pdf

 

Montana Department of Revenue Taxpayer Access Point (TAP)
https://tap.dor.mt.gov/_/

Definitions in Montana

 

“Smoking” or “to smoke” includes the act of lighting, smoking, or carrying a lighted cigar, cigarette, pipe, or any smokable product and includes the use of marijuana for a debilitating medical condition.

 

Mont. Code Ann. § 50-40-103

 

“Tobacco product” means cigarettes and all other products containing tobacco that are intended for human consumption or use.

 

Mont. Code Ann. § 16-11-102(r)

 

“Moist snuff” means any finely cut, ground, or powdered tobacco, other than dry snuff, that is intended to be placed in the oral cavity.

 

Mont. Code Ann. § 16-11-102(k)

 

“Retailer” means a person, other than a wholesaler, who is engaged in the business of selling tobacco products to the ultimate consumer. The term includes a person who operates fewer than 10 tobacco product vending machines.

 

Mont. Code Ann. § 16-11-102(m)

 

“Wholesaler” means a person who:

  • purchases tobacco products from a manufacturer for the purpose of selling tobacco products to subjobbers, tobacco product vendors, wholesalers, or retailers; or
  • purchases tobacco products from a sole distributor, another wholesaler, or any other person for the purpose of selling tobacco products to subjobbers, tobacco product vendors, wholesalers, or retailers.

 

Mont. Code Ann. § 16-11-102(u)

 

“Tobacco product vendor” means a person doing business in the state who purchases tobacco products through a wholesaler, subjobber, or retailer for 10 or more tobacco product vending machines that the person operates for a profit in premises or locations other than the person’s own. A tobacco product vendor must be treated as a wholesaler.

 

Mont. Code Ann. § 16-11-102(s)

 

“Subjobber” means a person who purchases from a licensed wholesaler cigarettes with the Montana cigarette tax insignia affixed and sells or offers to sell tobacco products to a licensed retailer or tobacco product vendor. An isolated sale or exchange of cigarettes between licensed retailers does not constitute those retailers as subjobbers.

 

Mont. Code Ann. § 16-11-102(q)

 

“Manufacturer” means any person who fabricates tobacco products from raw materials for the purpose of resale.

 

Mont. Code Ann. § 16-11-102(i)

 

“Distribute” means:

  • to give, deliver, sample, or sell;
  • to offer to give, deliver, sample, or sell; or
  • to cause or hire another person to give, deliver, sample, or sell or offer to give, deliver, sample, or sell

 

Mont. Code Ann. § 16-11-302(1)

 

Effective January 1, 2016

 

Mont. Code Ann. § 16-11-302(2)

 

“Wholesale price” means the established price for which a manufacturer sells a tobacco product to a wholesaler or any other person before any discount or reduction.

 

Mont. Code Ann. § 16-11-102(t)

 

“Sale” or “sell” means any transfer of tobacco products for consideration, exchange, barter, gift, offer for sale, or distribution in any manner or by any means.

 

Mont. Code Ann. § 16-11-102(o)

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