Montana Department of Revenue

Cigarette Taxes

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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 Business Tax Express.

Fees

Each cigarette sold in Montana has 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.

Cigarette Minimum Pricing

It is illegal to sell any brand of cigarettes not on the Minimum Price List (PDF, 190 KB). (16-11-505, MCA)

Violators are subject to fines, including:

  • $250 for the first full or partial pack
  • $10 for each additional full or partial pack with a tax insignia that is sold, offered for sale, or possessed for sale

The full details of fines and penalties are listed in 16-11-509, MCA.

Licensing

You may apply for a wholesaler, subjobber, tobacco vendor or retailer licenses through the eStop Business Licenses Service.

Reporting

Wholesalers report cigarette sales and order decals using our TransAction Portal (TAP) or the Cigarette Tax Decals Order Form (Form CT-201).

Cigars as Cigarettes

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):

  • Blackstone
  • Captain Black
  • Dark Horse
  • Dean’s
  • Hats Off
  • Muriel
  • Prime time
  • Red Buck
  • Rojo
  • Swisher Sweet Little Cigars
  • Winchesters

You can download a printable version of the current list, updated 1/24/17 (PDF, 135 KB). 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.

Revenue Distribution

Revenues, after tribal revenue sharing payments, are distributed:

  • The greater of 8.3% or $2 million to a special revenue fund for DPHHS state veteran and nursing home programs
  • 6% to the long-range building program account
  • 44% to a special revenue fund for the health and Medicaid initiatives account
  • Remaining funds to the state General Fund

(16-11-101 through 16-11-159, MCA; 42.31.101 through 43.31.3, ARM and 42.31.301 through 42.31.350, ARM)

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