Montana Department of Revenue
Citizen Services Call Center
Montana Commissioner of Political Practices
(406) 444-2942 firstname.lastname@example.org
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.
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.
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.
“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.
“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.
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.
“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.
“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.