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:
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Create your epass montana account using the estop business online service on Sate website.
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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.
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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:
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Retailer of Tobacco
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Retailer of less than 10 vending machines
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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:
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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.
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Tax rate on cigarettes is $ 1.7 for a pack of 20 cigarettes or $ 0.85 per cigarette. It is collected from wholesalers on 15th of every month.
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The tax rate on moist snuff is $ 0.85 per ounce. It is collected from wholesalers and distributors on 15th 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:
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A person who sale tobacco, nicotine or vapor products at a retail store or by vending machine without a license.
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A person who sale or distributes tobacco products that is not listed in the Tobacco product diary.
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A person who fails to pay the tobacco tax or report to the relevant authorities.
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A person who possesses any tobacco products without a tax stamp.
Filing of tax return in the State of Montana:
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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 15th of every month.
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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 15th of every month.
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You can use these reports to pay your tobacco taxes and report your sales.
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1.5% allowance is given by the State if you submit your tax return and payment details on time.
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Late filing and late payment of fee for the return are subject to a penalty prescribed by the Department of Revenue, State of Montana.
