(1) When tax increases occur, the department may conduct audits on cigarette inventories located at the wholesaler's and/or retailer's premises in order to comply with the tax increase.
(2) There is only one basic cost for each brand or style of cigarettes. The minimum price computation for Montana taxed cigarettes is:
Basic cost of cigarettes as
defined in 16-10-103, MCA ..................................................................... xxxxx
(ADD) Federal tax ............................................................................. xxxxx
(ADD) State tax ................................................................................. xxxxx
Basic cost of cigarettes plus taxes .......................................................... xxxxx
Multiply the basic cost of cigarettes
plus taxes by wholesale cost of doing
business and by cartage.
(ADD) Wholesale cost of doing business
or as established by department
approved cost survey .......................................................... xxxxx
Cartage...current statutory rate
or as established by department
approved cost survey .......................................................... xxxxx
The minimum wholesale price/
cost to retailer ...................................................................... xxxxx
Multiply the minimum wholesale
price by the retail cost of
doing business.
(ADD) Retail cost of doing business
current statutory rate
or as established by department
approved cost survey .......................................................... xxxxx
The minimum retail price/cost to consumer ............................................ xxxxx
(3) The minimum price computation for Montana untaxed cigarettes is:
Basic cost of cigarettes as
defined in 16-10-103, MCA ..................................................................... xxxxx
(ADD) Federal tax ............................................................................. xxxxx
Basic cost of cigarettes plus tax ............................................................... xxxxx
Multiply the basic cost of cigarettes
by wholesale cost of doing
business and by cartage.
(ADD) Wholesale cost of doing business
...current statutory rate or as
established by department
approved survey ................................................................... xxxxx
Cartage............current statutory rate
The minimum wholesale price/
cost to tax exempt retailer.................................................... xxxxx
Multiply the minimum wholesale
cost by the retail cost of
doing business.
(ADD) Retail cost of doing business
current statutory rate or as
established by department
approved cost survey ........................................................... xxxxx
The minimum tax-exempt retail price/cost
to tax exempt consumer ............................................................................ xxxxx