Montana Administrative Code

42.30.203 PRE-NEED FUNERAL TRUSTS – ELECTION TO FILE COMPOSITE RETURN A pre-need funeral trust must file a Montana income tax return under the trust name used for filing the federal income tax return. If the fiduciary of a pre-need funeral trust is the fiduciary of more than one …

42.30.204 ELECTING SMALL BUSINESS TRUST (ESBT) The portion of an ESBT that consists of stock in one or more S corporations is treated as a separate trust for purposes of determining Montana tax liability. The tax, as provided in 15-30-2153, MCA, must be calculated separately and …

42.31.1002 FEE Each hospital in the state shall pay to the department a utilization fee as specified in the schedules shown in 15-66-102, MCA. Authorizing statute(s): 15-66-104, MCA Implementing statute(s): 15-66-102, MCA History: NEW, 2006 MAR p. 3109, Eff. 12/22/06; AMD, 2010 M…

42.31.101 AFFIXING CIGARETTE TAX INSIGNIA Only those licensed wholesalers who have obtained approval from the department to use tax stamping equipment may affix Montana cigarette tax insignia. Cigarette tax insignia may be applied only to products listed on the Montana Department…

42.31.102 MARKING UNSTAMPED CIGARETTES All cigarettes sold in Montana must have a Montana tax insignia except sales made to: military reservations; licensed wholesalers whose sales are subject to the provisions of ARM 42.31.108. The method of marking may either be by roll stamps …

42.31.103 SECURITY OF UNSTAMPED CIGARETTES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-113, 16-11-133, MCA History: Eff. 12/31/72; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 2000 MAR p. 3569, Eff. 12/22/00; REP, 2007 MAR p. 124, Eff. 1/26/07.…

42.31.104 USE OF STAMPING EQUIPMENT (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-115, MCA History: Eff. 12/31/72; REP, 1992 MAR p. 668, Eff. 3/27/92.

42.31.105 STORAGE OF STAMPS During periods of nonuse, cigarette stamps must be stored in a secure area. Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-115, MCA History: Eff. 12/31/72; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 2000 MAR p. 3569, Eff. 12/22/00.…

42.31.106 EXAMINATION OF CIGARETTES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-113, MCA History: Eff. 12/31/72; REP, 1992 MAR p. 668, Eff. 3/27/92.

42.31.107 ACCOUNTING CONTROL OF CIGARETTE DISTRIBUTION Each wholesaler, on or before the 15th day of each month, shall provide a report to the department listing all sales into Montana for the preceding month's activities on forms provided and/or approved by the department. Sales…

42.31.108 SALES OF UNSTAMPED CIGARETTES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-132, 16-11-156, MCA History: NEW, 1980 MAR p. 129, Eff. 1/17/80; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 1993 MAR p. 2427, Eff. 10/15/93; AMD, 1995 MAR p. 285…

42.31.109 SALE OF OTHER STATE-STAMPED CIGARETTES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-132, MCA History: NEW, 1992 MAR p. 668, Eff. 3/27/92; AMD, 2000 MAR p. 3569, Eff. 12/22/00; AMD, 2004 MAR p. 2935, Eff. 12/3/04; REP, 2007 MAR p. 124,…

42.31.110 WHOLESALE/RETAIL PRICES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-111, MCA History: NEW, 1992 MAR p. 668, Eff. 3/27/92; REP, 1992 MAR p. 2563, Eff. 11/26/92.

42.31.1101 LOCAL-OPTION MARIJUANA EXCISE TAX; NOTIFICATION REQUIREMENTS OF A LOCALITY; AFFECTED DISPENSARY REPORTING AND TAX PAYMENT REQUIREMENTS If a locality adopts a local-option marijuana excise tax pursuant to 16-12-309 through 16-12-317, MCA, the taxes are imposed on the pu…

42.31.111 PURCHASING ROLL OR HAND-APPLIED CIGARETTE TAX INSIGNIA Roll or hand-applied stamp orders shall be submitted on forms provided and/or approved by the department. Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-115, 16-11-117, MCA History: NEW, 1992 …

42.31.121 CORPORATE APPLICANTS FOR CIGARETTE LICENSES The requirements of 16-11-120 , MCA, for names and home addresses of owners on applications for cigarette licenses will be met in the case of a corporation when the corporation furnishes the names and home addresses of the cor…

42.31.122 DECALS ON VENDING MACHINES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-123, MCA History: Eff. 12/31/72; REP, 2004 MAR p. 2935, Eff. 12/3/04.

42.31.131 CIGARETTE TAX REFUNDS Cigarette tax refunds will be issued as provided in (2), (3), and (4). All cigarette tax refunds will be calculated assuming the lowest current statutory discount rate unless documentation is provided supporting a higher discount rate. Refund claim…

42.31.201 DEFINITIONS The definitions below apply to this subchapter: “Characterizing nontobacco flavor” means an additive, compound, or ingredient that gives a specific taste, including, but not limited to, grape, strawberry, orange, clove, cinnamon, pineapple, vanilla, coconut,…

42.31.202 PAYMENT OF TAX The wholesaler or retailer shall remit the appropriate tax calculated at the statutory rate for all untaxed tobacco products purchased for sale in Montana less the statutory discount. All wholesalers or retailers shall remit the tax on forms provided and/…

42.31.203 OUT-OF-STATE WHOLESALERS All out-of-state wholesalers meeting the conditions of "transacting business in this state" as provided in 35-1-1026, MCA, and all out-of-state wholesalers doing intrastate business within Montana, are subject to all of the provisions of Title 1…

42.31.204 PAYMENT OF TAX BY RETAILER A retailer must assume that the tobacco products tax has not been paid to the department in the absence of the statement required by ARM 42.31.212 on the invoice or sales slip for tobacco products. Authorizing statute(s): 16-11-103, MCA Implem…

42.31.205 DISPLAY OF NOTICE OF TAX (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-202, MCA History: Eff. 12/31/72; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 1995 MAR p. 2853, Eff. 12/22/95; AMD, 2000 MAR p. 3569, Eff. 12/22/00; AMD, 2004 MAR p. 29…

42.31.206 A TOBACCO PRODUCT LABELED AS SOMETHING OTHER THAN A CIGARETTE A tobacco product labeled as something other than a cigarette, or with no label, including but not limited to little cigars, may be considered a cigarette, described in ARM 42.31.207, and under 16-11-102, MCA…

42.31.207 DEPARTMENT DETERMINATIONS OF TOBACCO PRODUCTS A tobacco manufacturer may request the department to determine if its product is a cigarette defined in 16-11-102, MCA. When the department receives a manufacturer’s request to determine whether a product is a cigarette unde…

42.31.208 CONTESTED CASE AND JUDICIAL REVIEW OF DETERMINATIONS A determination by the department that a product is a cigarette pursuant to 16-11-102, MCA, may be contested in the manner prescribed in 15-1-211, MCA, and ARM 42.2.613 through 42.2.620. In a contested case before the…

42.31.2101 DEFINITIONS The following definitions apply to terms used in this sub-chapter: A "public contractor" is anyone who submits a proposal to or enters into a contract with a governmental agency or department for the construction or reconstruction of any public work, the co…

42.31.2104 CONTRACTOR'S RETURN REQUIRED FOR PUBLIC WORKS PROJECTS Public works contracts performed during the calendar year showing the one percent tax credit withheld during the current tax year must be filed with the department. For purposes of this filing, the department will …

42.31.211 WHOLESALER INVOICES (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-202, 16-11-203, MCA History: Eff. 12/31/72; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 1995 MAR p. 2853, Eff. 12/22/95; REP, 2000 MAR p. 3569, Eff. 12/22/00.

42.31.212 STATEMENT BY WHOLESALER All invoices or sales slips issued by wholesalers covering sales to retailers of all tobacco products must contain a statement (typed, printed, or stamped) that the applicable Montana tobacco products tax is included in the total billing cost. Au…

42.31.2121 CONTRACT AWARD REPORT BY AGENCY Whenever a contract for the performance of public construction or reconstruction is awarded by any governmental agency, or departments thereof or any contractor subletting a contract, the awarding agencies, departments or contractors mus…

42.31.2122 GROSS RECEIPTS WITHHOLDING BY AGENCY The governmental agencies that have awarded a contract for the performance of public construction or reconstruction works and are making payment for the satisfactory performance of said contract, or any increment thereof, must withh…

42.31.213 WHOLESALER AND RETAILER RECORDS (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-118, 16-11-202, 16-11-203, MCA History: Eff. 12/31/72; AMD, 1992 MAR p. 668, Eff. 3/27/92; AMD, 1995 MAR p. 2853, Eff. 12/22/95; AMD, 2000 MAR p. 3569, Eff. …

42.31.2131 CONTRACT AWARD REPORT BY CONTRACTOR AWARDED CONTRACT Whenever a contract for the performance of public construction or reconstruction works is awarded by the federal government or by any agencies or when a contractor sublets a contract, the contractor awarded the contr…

42.31.2132 GROSS RECEIPTS PAYMENT BY CONTRACTOR If one percent of the gross receipts is not withheld by the contracting governmental agency or awarding contractor, the contractor must make payment of such amounts to the department within 30 days after the date on which the contra…

42.31.2133 ADDITIONAL REPORT AND WITHHOLDING REQUIREMENTS IN CASE OF SUBLET CONTRACT Whenever a contract for the performance of public construction or reconstruction has been awarded by any governmental agency, including the federal government, and a contractor sublets a contract…

42.31.2134 ESTIMATION OF TAX UPON FAILURE TO FILE AND PAY TAX If a contractor fails to file the statement required by 15-50-206, MCA, and fails to pay the tax due within the required 30 days, the department will estimate the amount due from sources available to the department, an…

42.31.214 DEPARTMENT EXAMINATIONS AND PRESERVATION OF RECORDS (REPEALED) Authorizing statute(s): 16-11-103, MCA Implementing statute(s): 16-11-202, 16-11-203, MCA History: Eff. 12/31/72; REP, 2000 MAR p. 3569, Eff. 12/22/00.

42.31.2141 PERSONAL PROPERTY TAX REFUND Public contractors, who have had the 1% contractors gross receipts tax withheld from them by any governmental agency or prime contractor, will be allowed, as a refund any of those personal property taxes and motor vehicle fees incurred betw…

42.31.2142 CORPORATION LICENSE TAX CREDIT A cor-poration is allowed a credit against its Montana corporation license tax liability for "public contractor's gross receipts tax" paid pursuant to the provisions of 15-50-205 and 15-50-206, MCA. The credit is allowed with respect to t…

42.31.2143 STATE INCOME TAX CREDIT A resident or a nonresident individual is allowed a credit against his Montana income tax liability for "public contractor's gross receipts tax" paid pursuant to the provisions of 15-50-205 and 15-50-206, MCA. The credit is allowed with respect …

42.31.221 CREDITS FOR UNSALEABLE TOBACCO PRODUCTS OTHER THAN CIGARETTES Credits of the statutory rate for tobacco products shall be granted in accordance with the provisions of 15-1-503, MCA, in cases where the tobacco products purchased and delivered become unsaleable. A manufac…

42.31.301 GENERAL POLICY (REPEALED) Authorizing statute(s): 16-10-104, MCA Implementing statute(s): 16-10-305, MCA History: NEW, 1986 MAR p. 1320, Eff. 8/1/86; REP, 1992 MAR p. 668, Eff. 3/27/92.

42.31.302 COMPLAINTS, INVESTIGATIONS, AND PENALTIES All complaints for violation of these rules must be received in writing. No anonymous or oral complaints will be considered by the department. Upon receipt of a written and verified complaint from a person, an investigation will…