Tobacco Taxes Montana's excise tax per pack of cigarettes: $0.700 Montana's excise tax collection for the fiscal year ending June 2002: $12,120,000 Federal excise tax per pack of cigarettes: $0.39 Total federal excise tax collections in fiscal year 2002: $7,512,700,000

Who Profits from Cigarette Sales? click for larger view

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Number of six-packs of beer that must be sold in Montana to produce the same state excise tax revenue generated by one carton of cigarettes: 23

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Number of bottles of wine that must be sold in Montana to produce the same state excise tax revenue generated by one carton of cigarettes: 8.6

Montana Smokers' Contributions
to the State Economy - 2002

Smokers Pay Excise Taxes2	$	12,120,167
Smokers Pay Tobacco Settlement Payments3	$	30,361,682
	$	42,481,849

• Income

Montana smokers' median household income2001 1

$

27,076

• Montana state tax liability for median household income smoker4

Annual state income tax liability for a couple	$	986
Annual state income tax liability for a couple with two children	$	778

• Smoker Excise Tax/Tobacco Settlement Payments Liability5

Total average paid per Montana smoker in excise taxes	$	82
Cost per Montana smoker for settlement payments to Montana	$	206
Total annual payment to Montana per smoker	$	288

TOTAL SMOKER CIGARETTE PAYMENTS TO MONTANA   Per year: $ 42,481,849 Per day: $ 116,309 Per hour: $ 4,846 Per minute: $ 81 Per second: $ 1

1 Centers for Disease Control's Behavioral Risk Factor Surveillance System, 2001
2 Orzechowski & Walker, Arlington, Virginia; from state revenue department
3 PriceWaterhouseCooper
3 State annual income tax liability from PayBreeze software of General Programming, Inc., San Jose, California, which utilizes the Exact Calculation Method.
5 U.S. Census Bureau, 2000 state population and Centers for Disease Control's Behavioral Risk Surveillance System, 2001
6 Tax and Budget Comparisons are from U.S. Census Bureau and MT Legislative Fiscal Division, Legislative Fiscal Report for the 2003 Biennium, online at http://www.leg.state.mt.us/css/fiscal/2003_biennium/fiscal_report.asp and MT Legislative Fiscal Division estimate, from Legislative Fiscal Report for the 2003 Biennium
7 American Economics Group, Inc., The U.S. Tobacco Industry in 1997: Its Economic Impact in the States.

A summary of Montana state law is provided below
(for specific questions regarding state law, contact your legal advisor.)

Minimum Age	Customers must be 18 years or older to purchase tobacco products. If there is a reasonable doubt as to the individual's age, the seller shall require identification.
Restricted Products	Tobacco products, including cigarettes, cigars, snuff, smoking tobacco, and smokeless tobacco.
Acceptable Forms of Identification	Driver's license or other generally accepted identification that includes a picture of the individual.
Fine/Penalty Schedule for Selling to Minors	If the employee is not the owner, the employee responsible for the sale is subject to a $25 tobacco education fee for each violation. Owners will receive verbal notification of the first three violations in a three-year period; the fourth offense within three years will result in a written notice; the fifth offense within a three-year period will result in a $500 tobacco education fee charged to the owner (The employee or other person who sold the tobacco product, the establishment manager, and the establishment owner, if the owner is a sole proprietor or partner, shall read and view the tobacco education material); the sixth offense will result in a three-month license suspension; and the seventh and subsequent offenses within a three-year period are punishable by a one-year license suspension.
Affirmative Defense	None.
Minor Possession	Knowingly possessing or consuming tobacco products by minors is prohibited. Violators will be subject to a fine of $50 for the first offense and $75-100 for the second offense. Third and subsequent offenses are punishable by a fine of $100-250 or adjudication as a youth in need of supervision under the Montana Youth Court Act. If convicted, violators may be subject to community service or attendance at a tobacco cessation program. Knowingly attempting to purchase tobacco products by minors is prohibited. Violators will be subject to a fine of $50 for a first offense and may be ordered to perform community service. Second or subsequent offenses are punishable by a fine of up to $100 and possible community service.
Sign Requirement	Retailers must conspicuously display, at each place on the premises at which tobacco products are displayed and sold, a sign provided free of charge by the Department of Revenue that states: LAW PROHIBITS THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE. Failing to post signs will subject violators to a civil penalty of $100.
Compliance Checks	As a condition of receiving federal substance abuse block grant funds, federal law requires the State of Montana to conduct random, unannounced inspections of tobacco outlets to determine compliance rates. The Department of Public Health and Human Services coordinates the inspections.
DISCLAIMER: This information summary is provided as a service of the Coalition, but is not intended to provide legal advice or analysis. These summaries are not intended to be complete representations of state law, which may contain additional rules and restrictions relating to tobacco products not mentioned in this summary, as well as retailing prohibitions related to matters including, but not limited to, state required training, minimum pack size, the sale of loose cigarettes and other restrictions. Retailers should not rely on these summaries as complete or accurate descriptions of applicable federal, state or local law. Users with questions about the law should seek the advice of counsel. Each state law is unique and possibly represents multiple legislative or regulatory acts. Local laws may differ. Check with local authorities for variations from state law. These summaries are not intended to be complete representations of state law.

The reprinting of this information from the Coalition, does not constitute a representation or admission by RJRT that such information is accurate, complete, or a proper characterization of the laws concerned. The Coalition for Responsible Tobacco Retailing is a cooperative effort among retailers, wholesalers and manufacturers who share a common goal: to do all they can to prevent tobacco sales to minors.

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