Brewery Taxes


Breweries are required to pay taxes on beer sold directly to retailers and consumers. This tax is based upon the total number of barrels of beer produced by a brewer in a year. For purposes of this tax, "year" means the department's fiscal year which begins on July 1 of each calendar year and ends on June 30 of the following calendar year. "Annual" or "annually" are synonymous with the department's "year." For purposes of this tax, a tax year begins on July 1, and a "quarter" means a tax reporting period beginning July 1, October 1, January 1, and April 1 of each tax year.

All brewery reports are due quarterly on July 1, October 1, January 1, and April 1 using the TransAction Portal (TAP).

Rates

The brewer production increments and graduated per barrel tax rates provided in 16-1-406, MCA, correspond to a brewer's reported annual production regardless of whether the beer is produced nationally or internationally.

Barrels ProducedTax Rate per Barrel
0-5,000$1.30
5,001-10,000$2.30
10,001 or more$4.30

The quarter after the brewer exceeds a production increment, the per barrel tax rate will increase to the next production increment amount.

If the 5,001st barrel is produced in the first quarter, the tax rate will be $1.30 for the first quarter.  The per barrel tax rate will increase to $2.30 beginning with the second quarter and will continue at that rate for the remainder of the year or until the quarter after the next production increment is exceeded.

A brewer must notify both the department and its wholesalers, in writing, by the end of the quarter when a production increment is exceeded, resulting in the brewer moving to the next production increment.

A brewer who has produced 10,000 barrels of beer or less in the preceding year will begin the next year at the $1.30 per barrel tax rate.

Payment and Reporting Options

All breweries report and pay using the TransAction Portal (TAP), however, which form they use in TAP is determined by the brewery's location: 

In-State Breweries

In-state breweries file the Beer Wholesalers/Brewers Quarterly Tax Return (Form BET).

Out-of-State Breweries

Out-of-state breweries file a return based on if they ship to retailers, distributors, or both:

Shipping to Distributors

If the brewery ships to distributors, it files the Monthly Report of Beer Shipments into the State of Montana (Form BSM)

Shipping to Retailers

If the brewery ships to retailers, it files the From BET

Shipping to Both

If a brewery ships to both retailers and distributors, it must file both Form BET and Form BSM.