House Bill No. introduced by M. Cunningham proposes to revise the tax on cigarettes in Montana, increasing the tax from $1.70 to $2.70 for each package containing 20 cigarettes. The bill amends Section 16-11-111 of the Montana Code Annotated (MCA) to reflect this change, specifying that the tax must be precollected by wholesalers and paid to the state. Additionally, the bill outlines the tax implications for packages containing a different number of cigarettes and addresses the tax on illegally packaged cigarettes.

The bill also includes provisions regarding tax exemptions for sales to tribal members, detailing the process for wholesalers to apply for refunds or credits for taxes precollected on cigarettes sold to members of federally recognized tribes on reservations. It establishes a system for tax-free cigarette distribution to tribal members, contingent upon meeting quota agreements between the state and the tribes. Furthermore, the bill maintains existing tax structures for other tobacco products and outlines the responsibilities of wholesalers and retailers in complying with tax regulations.

Statutes affected:
LC Text: 16-11-111
HB0826_1(1): 16-11-111
HB0826_1(2): 16-11-111
HB0826_1: 16-11-111