Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.31 - MISCELLANEOUS TAX - COMMERCIAL ACTIVITIES › Subchapter 42.31.3 - Credit Limitations for Tobacco Products › Rule 42.31.308 - WHOLESALE/RETAIL PRICES

Current through Register Vol. 13, July 5, 2024
(1) When tax
				increases occur, the department may conduct audits on cigarette inventories
				located at the wholesaler's and/or retailer's premises in order to comply with
				the tax increase.
(2) There is only
				one basic cost for each brand or style of cigarettes. The minimum price
				computation for Montana taxed cigarettes is:
Basic cost of cigarettes as defined in
							 16-10-103,
							 MCA.....................................................................
xxxxx
(ADD) Federal
							 tax.............................................................................
xxxxx
(ADD) State
							 tax.................................................................................
xxxxx
Basic cost of cigarettes plus
							 taxes..........................................................
xxxxx
Multiply the basic cost of cigarettes plus taxes by
							 wholesale cost of doing business and by cartage.
(ADD) Wholesale cost of doing business or as
							 established by department approved cost
							 survey..........................................................
xxxxx
Cartage...current statutory rate or as established by
							 department approved cost
							 survey..........................................................
xxxxx
The minimum wholesale price/cost to
							 retailer......................................................................
xxxxx
Multiply the minimum wholesale price by the retail
							 cost of doing business.
(ADD) Retail cost of doing business current statutory
							 rate or as established by department approved cost
							 survey..........................................................
xxxxx
The minimum retail price/cost to
							 consumer............................................
xxxxx
(3) The minimum price computation for Montana untaxed
							 cigarettes is:
Basic cost of cigarettes as defined in
							 16-10-103,
							 MCA.....................................................................
xxxxx
(ADD) Federal
							 tax.............................................................................
xxxxx
Basic cost of cigarettes plus
							 tax...............................................................
xxxxx
Multiply the basic cost of cigarettes by wholesale
							 cost of doing business and by cartage.
(ADD) Wholesale cost of doing business
...current statutory rate or as established by
							 department approved
							 survey...................................................................
xxxxx
Cartage............current statutory rate
The minimum wholesale price/cost to tax exempt
							 retailer....................................................
xxxxx
Multiply the minimum wholesale cost by the retail
							 cost of doing business.
(ADD) Retail cost of doing business current statutory
							 rate or as established by department approved cost
							 survey...........................................................
xxxxx
The minimum tax-exempt retail price/cost to tax
							 exempt
							 consumer............................................................................
xxxxx
16-11-103, MCA; IMP,
					 16-10-103,
					 16-10-104,
					 16-11-111,
					 MCA;