Bill > HB826

This bill amends Montana's cigarette tax law by increasing the tax on cigarettes from $1.70 to $2.70 per 20-cigarette package, which represents a $1 increase in the per-package tax rate. The bill maintains the existing pro-rated tax structure for packages containing other than 20 cigarettes, calculating the tax as 1/20 of the 20-cigarette package rate. The legislation also preserves existing provisions related to tax exemptions and refunds for cigarette sales to tribal members on Montana Indian reservations, including a system of pre-approved wholesaler shipments and quota allocations. Additionally, the bill continues to impose a 50% wholesale price tax on tobacco products other than cigarettes, with specific rate provisions for premium cigars (the lesser of 50% of wholesale price or 35 cents per cigar) and moist snuff (85 cents per ounce). The bill requires wholesalers to pre-collect and pay these taxes to the state, with penalties for non-compliance, and ensures that retailers must also comply with tax collection requirements if the tax has not been previously collected.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3305