Montana charges a tax on cigarettes sold in the state.
We pre-collect the cigarette tax by selling a tax decal to wholesalers, who then attach the decal to each pack of cigarettes sold in Montana.
Only a licensed wholesaler can purchase tax decals. Decals are sold at face value minus an allowance for the costs of affixing the insignias and pre-collecting the tax on our behalf.
Cigarette decals may be ordered through the TransAction Portal (TAP).
Each cigarette sold in Montana has an 8.5¢ tax, included in the retail price of the cigarettes.
This comes out to $1.70 for a standard pack of 20 cigarettes, adjusted proportionally for different size packages.
It is illegal to sell any brand of cigarettes not on the Cigarette Minimum Price.
You may apply for a wholesaler, subjobber, tobacco vendor or retailer license through the eStop Business Licenses Service.
Wholesalers report cigarette sales and order decals using our TransAction Portal (TAP) or the Cigarette Tax Decals Order Form (Form CT-201).
Because of their appearance and characteristics, some cigars count as cigarettes for the Youth Access to Tobacco Products Control Act and tobacco taxes.
Example brands include (but are not limited to):
Little Cigars to be taxed as cigarettes in Montana
The current list may not be complete and is subject to change. Contact us if you have questions on a particular brand.
We determine if a cigar is classified as a cigarette using the guidelines in 42.31.206, 42.31.207, and 42.31.208, ARM.
Our determination goes into effect as soon as it is published. We don't allow time to sell off existing inventory. If you want to sell a product that is not currently on the list, but you think might be in the future, contact us about that product.
The Cigarette Tax distribution can be found at 16-11-119 MCA
For more information, please contact the Department's Business Tax Unit:
Phone
(406) 444-6900