Brewery Taxes

Breweries are required to pay taxes on beer sold directly to retailers and consumers. This tax is based on the total number of barrels of beer produced by a brewer in a year.

For purposes of this tax:

  • A year means the department’s fiscal year, which begins on July 1 and ends on June 30 of the following calendar year.
  • Annual and annually are synonymous with the department’s fiscal year.
  • A tax year begins on July 1.
  • A quarter is a tax reporting period beginning on July 1, October 1, January 1, and April 1 of each tax year.

Filing and Due Dates

All brewery reports are due quarterly on:

  • July 1
  • October 1
  • January 1
  • April 1

All reports must be filed using the TransAction Portal (TAP).

Tax Rates and Production Increments

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.

Per-Barrel Tax Rates

Graduated beer tax rates by annual barrels produced
Barrels Produced Tax Rate per Barrel
0–5,000 $1.30
5,001–10,000 $2.30
10,001 or more $4.30

Changes in Tax Rate During the Year

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 remains $1.30 for the first quarter.
  • The tax rate increases to $2.30 beginning with the second quarter.
  • The $2.30 rate continues for the remainder of the year or until the next production increment is exceeded.

A brewer must notify both the department and its wholesalers in writing by the end of the quarter in which a production increment is exceeded. This notification is required when the brewer moves 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 file the Beer Wholesalers/Brewers Quarterly Tax Return (Form BET).

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 Form BET.

Shipping to Both

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