Title 16, Title 16

This code is divided into six chapters. Chapter 1 relates to the authority of the department of revenue to administer this code and the powers and functions of the department. Chapter 2 relates to the establishment of agency liquor stores and the keeping and selling of liquors. C…

As used in this code, the following definitions apply: (1) "Agency franchise agreement" means an agreement between the department and a person appointed to sell liquor as a commission merchant rather than as an employee. (2) "Agency liquor store" means a store operated under an a…

(1) Nothing in this code prevents any brewer, distiller, or other person, licensed under the provisions of any statute of the United States of America for the manufacture of alcoholic beverages, from having or keeping alcoholic beverages in a place and in the manner authorized by…

(1) Subject to the provisions of this section, nothing in this code, by reason only that a preparation contains alcohol, prevents the manufacture, sale, purchase, or consumption of any: (a) extract, essence, or tincture or other preparation containing alcohol that is prepared acc…

A physician, dentist, veterinarian, or pharmacist, acting within the scope of the individual's professional responsibility and license to practice, who prescribes, prepares, or administers alcohol or substances containing alcohol and sells or charges a fee does not violate the pr…

Any person in charge of an institution regularly conducted as a licensed hospital or health care facility may administer alcoholic beverages purchased by the person to any patient or inmate of the institution and may charge for the alcoholic beverages.

The electors of a county may, by approving an initiative as provided under 7-5-137 and Title 13, chapter 28, prohibit the sale and consumption of liquor or of all alcoholic beverages within the county. If the initiative is presented to the board of county commissioners, the board…

The department shall have the powers and duties to administer the Montana Alcoholic Beverage Code, including the general control, management, and supervision of all agency liquor stores.

The department has the following functions, duties, and powers: (1) to buy, import, have in its possession for sale, and sell liquors; (2) to control the possession, sale, and delivery of liquors in accordance with the provisions of this code; (3) to determine the municipalities …

(1) The department and the department of justice may make rules not inconsistent with this code necessary to efficiently administer this code. (2) Rules made by the department may include but are not limited to the following: (a) regulating the contractual operation of agency liq…

(1) An employee of the department involved in the operation of the state liquor warehouse, the issuance of licenses, or the collection of alcoholic beverages taxes or an employee of the department of justice directly involved with license applications or the investigation of matt…

All property, whether real or personal, all moneys acquired, administered, possessed, or received by the department, and all profits earned in the administration of this code shall be the property of the state. All expenses, debts, and liabilities incurred by the department in co…

Except as provided in 16-1-404, 16-1-406, and 16-1-411, all fees, charges, taxes, and revenue collected by or under authority of the department must, in accordance with the provisions of 17-2-124, be deposited to the credit of the state general fund.

(1) The department may allow industry trade shows to allow alcoholic beverage manufacturers the ability to showcase alcoholic beverage products to industry trade show attendees. The department may partner with other state agencies to allow an industry trade show. (2) An alcoholic…

(1) Except as provided in subsection (3), the department shall collect at the time of the sale and delivery of any liquor as authorized under any provision of the laws of the state of Montana an excise tax at a rate that is the percent of the retail selling price determined in ac…

(1) Every airline or railroad operating in the state of Montana and selling liquor purchased outside this state for consumption within this state shall pay to the department the excise taxes and state markup that would be applicable to the liquor if purchased from an agency liquo…

(1) Any carrier aggrieved by the application of the method provided in 16-1-402 may petition the department for use of an alternate method. If the department finds that the application of the method will be unjust to the carrier, it may allow the use of the method petitioned for …

(1) Except as provided in subsection (4), the department shall collect at the time of sale and delivery of any liquor under any provisions of the laws of the state of Montana a license tax of: (a) 10% of the retail selling price on all liquor sold and delivered in the state by a …

(1) (a) A tax is imposed on each barrel of 31 gallons of beer sold in Montana by a distributor or by a licensed brewer directly to retailers, special permittees, or the public. The tax is based on the total number of barrels of beer produced by a brewer in a year. A brewer who pr…

(1) (a) A tax of 27 cents a liter is imposed on sacramental wine and table wine, except hard cider, sold by: (i) a distributor to licensed retailers, agency liquor stores, and special permit holders; (ii) a licensed winery directly to licensed retailers, special permit holders, o…

(1) If the department determines that the amount of the tax due is greater than the amount disclosed by a return, it shall mail to the licensee a notice, pursuant to 15-1-211, of the additional tax proposed to be assessed. The notice must contain a statement that if payment is no…

(1) If the licensee fails to file any return required by this part within the time required, the department may, at any time, audit the licensee or estimate the taxes due from any information in its possession and, based on the audit or estimate, assess the licensee for the taxes…

(1) (a) The department shall collect taxes that are delinquent as determined under this part. (b) If a tax imposed by this part or any portion of the tax is not paid when due, the department shall impose a penalty and interest as provided in 15-1-216 and the department may issue …

(1) A claim for a refund or credit as a result of overpayment of taxes collected under this part must be filed within 3 years of the date that the return was due, without regard to any extension of time for filing. (2) (a) Interest paid by the department on an overpayment must be…

The department shall prescribe rules necessary to carry out the purposes of imposing and collecting the tax on the sale of alcoholic beverages.

(1) Except as provided in subsection (3), a distillery licensed to do business in this state under 16-4-311 shall, on or before the 15th day of each month, electronically on a form prescribed by the department, make an exact return to the department reporting the total amount of …

(1) The department shall enter into agency franchise agreements to operate agency liquor stores as the department finds feasible for the wholesale and retail sale of liquor. (2) (a) The department may from time to time fix the posted prices at which the various classes, varieties…

(1) An agency liquor store shall, on each sale of liquor to any licensee, issue a duplicate invoice of the liquor purchased, as provided by the department, a copy of which must be delivered to the licensee and one copy retained at the store. (2) The invoice must show the date of …

Agency liquor stores may remain open during the period between 8 a.m. and 2 a.m. Subject to local ordinances or department requirements relating to operating hours, a store may be open or closed at the store's discretion.

A liquor store agent and a person acting as an employee of or in any capacity for any agent may not sell liquor in any other place or at any other time or otherwise than as authorized by this code and the rules implementing this code.

A liquor store agent may sell to any person any liquor and table wine that the person is entitled to purchase in conformity with the provisions of this code and the rules implementing this code. An agent may, under the terms and conditions that the agent establishes, deliver liqu…

An agent and the agent's employees in an agency store may not allow any alcoholic beverage container to be opened on the premises of an agency liquor store or allow any alcoholic beverage to be consumed on the premises of an agency liquor store, nor may any person open an alcohol…

(1) The department may purchase liquor from money deposited to its account in the enterprise fund. The department shall pay from its account in the enterprise fund its administrative expenses associated with the sale of liquor, subject to the limits imposed by legislative appropr…

(1) (a) In a community with a population of 12,000 or less, there may be one agency liquor store. In communities with populations greater than 12,000, there may be one agency liquor store for the first 12,000 inhabitants and one additional agency liquor store within increments of…

The state has a first lien with an absolute first priority to secure any outstanding amounts due the state for liquor purchased on any inventory, including any after-acquired inventory in the possession of an agent or on the premises of an agency liquor store, to secure payment f…

(1) A sale or delivery of liquor or table wine may not be made to a retail licensee from an agency liquor store unless cash is paid within 7 days after the delivery of the liquor or table wine. (2) An agency liquor store may not extend more than 7 days' credit for the sold or del…

A reduction of 8% of the posted price of liquor sold at an agency liquor store must be made for sales of liquor to a licensee purchasing liquor in unbroken case lots. This reduction is limited to liquor designated by the department as regular product as defined by administrative …

Agency liquor stores may sell to licensees licensed under this code all kinds of liquor at the posted price. All sales must be paid for at the time of sale or made as provided in 16-2-111.

(1) Based upon the percentage of Montana-produced ingredients that are used in producing a liquor, the department shall reduce the liquor markup charged by the department in determining the wholesale price of the liquor. To qualify for a reduced markup, the liquor must have been …

The retail selling price at which table wine is sold at an agency liquor store is as determined by the agent.

(1) A person who manufactures, imports, distributes, or sells alcoholic beverages or the person's agent may not give or sell to any person within the state any alcoholic beverage except as may be permitted by and in accordance with the provisions of this code. (2) (a) Except as o…

(1) A person within the state may not: (a) canvass for, receive, take, or solicit orders for the purchase or sale of any liquor or act as agent or intermediary for the sale or purchase of any liquor or be represented as an agent or intermediary unless permitted to do so under rul…

The operator of any common carrier or its employees may not sell or dispose of any beer except beer that has been lawfully acquired or purchased from a licensed brewer, beer importer, or distributor.

Except in the case of alcoholic beverages kept or consumed in premises for which a license has been granted under the law and that form a part of a hotel, a person may not: (1) keep or consume alcoholic beverages in any part of a hotel other than a private guest room; (2) keep or…

(1) It is lawful to carry or convey alcoholic beverages to any place to which the alcoholic beverages may be lawfully delivered under this code and the rules of the department. (2) It is unlawful to: (a) open, break, or allow to be opened or broken any package or vessel containin…

(1) For the purposes of this section, "vendor" means an individual or a partnership, association, or corporation that sells liquor to the department. (2) A vendor who desires to promote the sale of the vendor's product in the state shall employ at least one representative and, ex…