In this month’s newsletter, learn more about the following:
- Application for packaging and labeling available in TAP
- Advertising rules and violations
- Email address – required!
- Cannabis-related tax questions: new phone number available
- Sales tax, loyalty programs, and discounts
- ARM and MCA availability
Packaging and Labeling
The Packaging and Labeling application is now available on the TransAction Portal (https://tap.dor.mt.gov).
To be compliant with the new packaging and labeling requirements, all licensees must submit their packaging and labeling applications for review by the Cannabis Control Division (CCD) by August 1, 2022.
Licensees who fail to submit applications for approval of packaging and labeling by August 1, 2022, will be subject to disciplinary proceedings.
CCD strongly encourages ALL licensees to reference the Labeling and Packaging Guide, as well as the Package and Label Submission Guide available on our website
Advertising Rules
Reminder: all licensees are required to be familiar with and comply with Montana’s marijuana and marijuana product advertising rules. Requirements are detailed at ARM 42.39.123 Advertising.
Email address: required!
Pursuant to ARM 42.39.105(2) General Licensee Requirements, licensees are responsible for ensuring the department has their current and working email addresses on file to receive department correspondence.
Failure to respond to certain department correspondence, such as deficiency letters and Notices of Proposed Department Action, could result in disciplinary action.
Cannabis-related tax questions
Do you have questions regarding taxes for cannabis? The Miscellaneous Tax Division now has a phone line for cannabis-related tax questions. Give them a call at 406.444.7040. You can also email them at DORMiscTax@mt.gov
Sales tax, loyalty programs, and discounts
After reviewing 2022 Quarter 1 Sales as reported in Metrc, the Cannabis
Control Division (CCD) reiterates its guidance on calculating Sales Tax.
Cannabis taxes are administered by the Department of Revenue’s Miscellaneous Tax Unit. CCD is working to improve consistency and transparency regarding how Cannabis Sales Taxes are calculated and assessed at the Point of Sale.
Please be aware of these key points:
- If a discounted sale is offered consistently to all your customers, then this discount would be non-taxable. This means the updated established retail price, or discounted price, is the amount that you would collect the applicable sales tax rate on.
If a Loyalty Points or similar customer rewards program are offered consistently and are available to all customers, then these Loyalty Points would be considered non-taxable. The updated established retail price that the applicable sales tax rate would be levied against becomes the retail price after applicable Loyalty Points have been deducted.
Please visit the FAQ portion of our website for more guidance on Sales Tax Calculations: https://mtrevenue.gov/cannabis/faqs/#CannabisTaxFAQ
If you need additional guidance or have questions about Sales Tax Calculation, please contact DOR’s Miscellaneous Tax Unit at (406) 444-7040 or DORMiscTax@mt.gov
Links to ARM and MCA
Uncertain where to find the relevant statutes and rules for Montana Marijuana Regulation and Taxation Act (MMRTA)?
Please visit our website and check out the Program Resources section:
More questions?
