Other Tobacco Product Taxes


 

Senate Bill 122, signed into law by Gov. Greg Gianforte on May 19, 2023, revises the Other Tobacco Product tax. This bill defines premium cigars and revises the tax of premium cigars to the lessor of 50% of the wholesale price or $0.35 per premium cigar. This goes into effect for premium cigars sold by a wholesaler after June 30, 2023

Montana taxes all tobacco products except cigarettes and moist snuff at 50% of the wholesale price except for premium cigars.

Premium cigar means any roll of tobacco that is hand wrapped in 100% whole tobacco leaf, is not wrapped by a machine, and does not contain a filter, tip, or any characterizing nontobacco flavor. Premium cigars are taxed at the lessor of 50% of the wholesale price or $0.35 per premium cigar.

We collect tobacco tax from wholesalers and distributors every month.

Montana gives wholesalers and distributors a 1.5% allowance for collecting and administering the tax when they submit their return and payment.

Licensing

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

Reporting

You may report tobacco sales through our TransAction Portal (TAP).

The return is due by the 15th of each month.

Revenue Distribution

Revenues, after tribal revenue sharing payments, are distributed:

(16-11-101 through 16-11-159, MCA; 42.31.201 through 42.31.221, ARM)

 

For more information, please contact the Department's Business Tax Unit:

Phone

(406) 444-6900

Email

DORBusinessTaxes@mt.gov