Cigarette Taxes

Overview

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 the TransAction Portal (TAP).

Tax Rates and Fees

  • Each cigarette sold in Montana has an 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 Cigarette Minimum Price List.

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 license
  • Subjobber license
  • Tobacco vendor license
  • Retailer license

Licenses can be obtained through the eStop Business Licenses Service.

Reporting Requirements

Wholesalers must report cigarette sales and order decals using either:

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

Little Cigars to be taxed as Cigarettes in Montana (PDF, 130 KB)

The current list may not be complete and is subject to change. Contact us if you have questions on a particular brand.

Classification Guidelines

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

The Cigarette Tax distribution can be found at 16-11-119, MCA.

Contact Information

For more information, please contact the Department’s Business Tax Unit.

Phone
(406) 444-6900
Email
DORBitBTU@mt.gov