MontanaHB 8669th Legislature, Regular Session (2025)House

Generally revise beer wholesaler and table wine laws

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Bill Overview

Analyzed Economic Effects

19 provisions identified: 4 benefits, 8 costs, 7 mixed.

Excise taxes on beer, wine, cider

The law sets per‑unit excise taxes. Beer: brewers pay $1.30 per barrel up to 5,000 barrels, $2.30 for 5,001–10,000, and $4.30 over 10,000. Distributors pay $4.30 per 31‑gallon barrel. Table and sacramental wine are taxed at $0.27 per liter; hard cider at $0.037 per liter. Beer tax is filed and paid electronically each quarter, and 23.26% of beer tax goes to DPHHS programs. Wine and cider tax revenue is split 69% to the general fund and 31% to DPHHS programs. Local governments cannot add extra taxes on wine or cider already taxed under this law.

Stronger distributor protections and sales

Distributors can ask a court to stop illegal terminations or cancellations and to block suppliers from serving their territory while an injunction is in place. The law repeals many old wholesaler statutes and replaces them under the new framework. It also makes clear that brewers and beer importers may sell or deliver to any licensed distributor.

No retailer loans and 7-day beer payments

Brewers, importers, and distributors may not lend money for a retailer’s license or taxes or hold a direct or indirect financial interest in a retailer. Distributors face the same bar on financial ties to retailers. Retailers must pay for beer within 7 days of delivery, and sellers cannot extend more than 7 days of credit. Longer credit counts as illegal financial help and can be penalized.

Stricter alcohol sourcing and shipping

Retailers may only buy beer or wine from licensed breweries, wineries, or distributors. Distributors and liquor store agents face matching licensed‑source limits. Common carriers and their workers may only sell beer acquired from licensed brewers, importers, or distributors. Shipping alcoholic beverages into Montana, including online or phone orders, is banned unless another law allows it.

Direct sales for small brewers and wineries

Brewers that make under 60,000 barrels a year may sell to retailers using their own trucks and staff, up to 8 barrels per retailer per day and 10,000 barrels per year total. These small brewers may also sell and deliver to the public, including curbside pickup from 8 a.m. to 2 a.m., in original packaging or growlers. Breweries may not use a common carrier to deliver to the public or to retailers. Wineries may sell wholesale and deliver with limits: up to 4,500 nine‑liter cases per year with their own equipment; common‑carrier shipments must leave from the winery or bonded warehouse, are capped at 3 cases per day per retailer, and 4,500 cases per year; wineries must keep and e‑file shipment records.

Rules for moving beer and wine

All beer and out‑of‑state table wine must be consigned to a licensed Montana distributor and unloaded at the distributor’s Montana warehouse. Distributors may sell and deliver to retailers, other distributors, and licensed carriers, and may deliver table wine to agency liquor stores. Deliveries usually must go to the retailer’s licensed site or listed storage areas; all‑beverages licensees may pick up from any warehouse, and other retailers or agents may pick up only within their distributor territory. If a site is hard to reach, the parties may get department approval for a different delivery plan.

Rules on supplier gifts to retailers

Brewers, importers, and distributors generally cannot lease, furnish, or pay for a retailer’s interior fixtures or ads. Small exceptions allow functional items up to $300 per store per year, up to six interior illuminated signs per brand per year, decorative items, and draft‑equipment maintenance. A brewery that fully owns its retail license is not limited for its own premises. The law also removes some financial‑interest limits that used to apply to table wine distributors.

Stronger contracts for beer and wine distributors

Distributors and suppliers must use written contracts that set territory and brands and protect the distributor’s right to set prices. Suppliers must give 60 days’ written notice and a chance to fix problems before ending a deal, but may end it right away for insolvency or certain license losses. Suppliers cannot fix resale prices, coerce illegal acts, or name more than one distributor for the same brand in an area; wine suppliers must treat overlapping distributors the same, and may use only one hard‑cider distributor per territory. Transfers need supplier consent that is not unreasonably withheld, contracts must be filed with the department within 60 days, and Montana law with jury‑trial rights applies. Shipping to or paying a licensed distributor counts as basic proof of a distributorship.

Colocated brewery sales don’t count toward cap

If a brewery fully owns a colocated retail license, beer made and sold at that retail site does not count toward the 10,000‑barrel self‑distribution limit. That beer still counts toward production totals for tax purposes.

Shelf-stable gelatin cup alcohol allowed

The department cannot ban shelf‑stable liquor sold in gelatin cups or block distribution of beer and table wine sold in those gelatin cups.

Nonprofits may raffle sealed alcohol

Qualified nonprofits may raffle or auction sealed alcoholic beverages at fundraisers. They may hold up to four events each year. If an event is on licensed premises, the bottle cannot be opened there. Minors cannot buy tickets or bid, proceeds cannot go to the donor, and beverages must be bought from licensed sources or donated by someone other than a distributor.

Distributors cannot sell to the public

Distributors may not give, sell, or deliver beer, table wine, or sacramental wine to the public. Distributors also may not sell, serve, or give away alcohol for consumption on their premises.

Keg sales need ID tags and records

Every keg sale needs a durable tag with the seller’s name, address, phone, and a warning. Only the licensee, a distributor, or law enforcement may remove the tag. If a retailer gets a keg without a tag, the retailer must record purchaser and returner details and keep the record for 45 days.

Out-of-state breweries must register first

Breweries outside Montana and beer importers must register with the department before shipping beer into Montana through distributors. They may not ship until registration is approved. The department may suspend or cancel a registration after notice and a hearing for noncompliance.

Quarterly sales reports for distributors

Distributors must file a quarterly return by the 15th day after each quarter with purchases, sales, deliveries, and inventory. The department may inspect books and check alcohol content. Wine retailers that buy directly from out‑of‑state wineries must also file a quarterly report by the 15th with how much they bought.

Wine and cider filing deadlines

Registered wineries that sell more than 1,000 liters from Oct 1 to Sep 30 must file and pay wine and cider taxes electronically each quarter by the 15th. If sales are 1,000 liters or less, file and pay once by October 15. Licensed wineries and distributors file and pay electronically each quarter by the 15th for the prior quarter.

Distributor licenses: who qualifies and fees

To sell at wholesale, you apply to the department, pay a $400 initial fee, and then a $400 annual fee. A distributor license expires at midnight on June 30, and you must have a fixed business, enough capital, and a warehouse and display the license. Cities and counties cannot charge you a separate local license fee. Manufacturers and entities they own or control cannot hold distributor licenses, and the law clarifies who counts as a “distributor.”

Retail signs limited; small in-state buys allowed

Retailers cannot display outside signs that name a beer maker, importer, distributor, or place of manufacture, except temporary displays up to 10 days; a brewery that fully owns its store may advertise its own products there. A retailer may buy up to 6 gallons per day from another licensed in‑state retailer and bring it to their store. The department may penalize purchases from out‑of‑state retailers made against the code.

New process for agency store rules

The department must use negotiated rulemaking when it writes rules for agency liquor stores. The department does not have to pay participant expenses for this process.

Sponsors & Cosponsors

Sponsor

Ed Buttrey
Republican • House

Cosponsors

Willis Curdy
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 286 • No: 13

Senate vote • 4/22/2025

Do Concur

Yes: 42 • No: 8

Senate vote • 4/18/2025