How to obtain tobacco retail license in the State of Montana

Tobacco business in the different states of US is carefully monitored and administered and it is mandatory to obtain a license when selling, importing or manufacturing tobacco products. In order to sale any tobacco products in the State of Montana, it is mandatory to obtain a license of selling tobacco products.

Who is a Tobacco retailer:

A tobacco retailer is a person who sells of offer to sale, any tobacco, tobacco products for a consideration, directly to the consumers from a specified retail location.

In the State of Montana, a person who has less than 10 vending machine at his retail outlet is a Retailer.

What are the tobacco products:

Tobacco products include cigarettes, cigars, snuff, smokeless tobacco, pipe tobacco, chewing tobacco and other vapor products.

Who is eligible to get a retailer license:

Any one person who sells tobacco products directly to consumers and have cigarettes vending machines in possession is eligible to apply for a Retailers license in the State of Montana.

If you are a retailer and selling other nicotine or vapor products, you must have the alternative nicotine retail license other than a tobacco retail license to sell these products.

How to apply for the license:

• Create your epass montana account using the estop business online service on Sate website.

• If you do not have an e account already for business license, click on the license a new estop business on the State website. You are required to provide the information about your business, location and certain other supporting documents for license issuance.

• For viewing your licenses, you can access your estop account by entering an email address, password or business number.

What is the fee for retail license:

An annual fee of $ 5 is applicable for license application as per the following categories:

• Retailer of Tobacco

• Retailer of less than 10 vending machines

• Retailer of nicotine or other vapor products.

Same amount is chargeable for renewal of license annually.

What if I don’t apply for a license in the State:

Failure to obtain a license in the State is subjected to a civil penalty amounting to $ 100.

Can a Retailer’s license be suspended:

If a retailer sells tobacco or other nicotine products to a minor (a person less than 18 years of age), his retail license may be suspended for three months or if he continues to do so, he may be subjected to a three year license suspension along with three years’ imprisonment.

Do you need different license for different locations and different tobacco products:

It is mandatory to apply for different license for different retail locations where you operate. However, a single application for license issuance can be submitted for different locations.

There is a state requirement that if you deal in a variety of tobacco products, you need to obtain a separate license for other products such as Nicotine or vapor products.

What are the Taxation requirements in the State of Montana:

• There is a standard rate on all tobacco products in the State of Montana except cigarettes and moist snuff. The tax rate is 50% of the wholesale price. Tax is collected from wholesalers and distributors of the tobacco products on a monthly basis.

• Tax rate on cigarettes is $ 1.7 for a pack of 20 cigarettes or $ 0.85 per cigarette. It is collected from wholesalers on 15^th of every month.

• The tax rate on moist snuff is $ 0.85 per ounce. It is collected from wholesalers and distributors on 15^th of every month.

Fines and Penalties for the violation of Tax rules:

Various fines and penalties are imposed by the department of revenue on the following:

• A person who sale tobacco, nicotine or vapor products at a retail store or by vending machine without a license.

• A person who sale or distributes tobacco products that is not listed in the Tobacco product diary.

• A person who fails to pay the tobacco tax or report to the relevant authorities.

• A person who possesses any tobacco products without a tax stamp.

Filing of tax return in the State of Montana:

• Every wholesaler of cigarettes who is licensed to sell in the state is required to report cigarette sales and order decal either online or using Trans-Action Portal or on Form CT-201 from the Department of revenue site on the 15^th of every month.

• Every person selling tobacco products in the state other than cigarettes is required to report sales using Trans-Action Portal or on Form TP-101 from the Department of revenue site on the 15^th of every month.

• You can use these reports to pay your tobacco taxes and report your sales.

• 1.5% allowance is given by the State if you submit your tax return and payment details on time.

• Late filing and late payment of fee for the return are subject to a penalty prescribed by the Department of Revenue, State of Montana.