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Classification of Certain "Little Cigars" as Cigarettes

Important Information for Manufacturers, Montana Licensed
Wholesalers, Subjobbers and Retailers

Effective July 1, 2007, some little cigars-because of their appearance and characteristics-will be classified as cigarettes.

Administrative Rules of Montana 42.31.206, 42.31.207, and 42.31.208  clarify that certain little cigars are considered cigarettes for the Youth Access to Tobacco Products Control Act and the taxation of tobacco products in Montana. These rules also establish the criteria and process the department will use to identify which little cigars are cigarettes for the Youth Access Act and for tax purposes, and how to contest and request a judicial review of this determination. The rules were adopted and certified by the Secretary of State on January 16, 2007.

The rules will impact such little cigar brands as (but not limited to) Blackstone, Captain Black, Dark Horse, Dean's, Hats Off, Muriel, Prime Time, Red Buck, Rojo, Swisher Sweet Little Cigars, and Winchester.

A notice and supporting materials are being mailed to all tobacco manufacturers, wholesalers, subjobbers and retailers to ensure that it is clear how we intend to implement these new rules.  Here is the process that we will follow:

  • An information packet will be mailed no later than June 14, 2007. We will allow three days mailing time and will assume that you will have notice of these changes no later than June 18, 2007.
  • A retailer who possesses any product included on the enclosed list (listed product) and who can prove that 1) the product was purchased prior to June 18, 2007; and 2) they have not ordered or purchased any listed product that does not meet the requirements of the new rules after June 18, 2007, will have until July 18, 2007 to dispose of the product.
  • A retailer who is unable to dispose of the listed product by July 18, 2007 may request an additional period of time not to exceed two weeks in which to dispose of the product.  Additional disposal time may be requested by calling Jim McKeon, Miscellaneous Tax Unit Manager at (406) 444-1940 or by email at jmckeon@mt.gov.  All listed products in the possession of an individual or entity that has been granted additional disposal time must be disposed of by no later than July 31, 2007; otherwise, the product is contraband and subject to immediate seizure.

Any listed product that does not meet the requirements of the new rules purchased after June 18, 2007, and not sold prior to July 1, 2007, is contraband and subject to immediate seizure.

 

Future determinations by the department under the new administrative rules are effective immediately upon publication.  We will not allow time to sell off existing inventory for future determinations.  Therefore, if you wish to sell a product that is not on the list, but that you suspect might be in the future, please contact us about that product.

The links below will help you better understand the classification of cigarettes as defined in Montana statute.