Montana Code 16-10-201. Wholesaler-to-wholesaler sales
16-10-201. Wholesaler-to-wholesaler sales. When one wholesaler sells cigarettes to any other wholesaler, the former may not be required to include in the selling price to the latter the cost to the wholesaler, as provided by 16-10-103, except that no such sale may be made at a price less than the basic cost of cigarettes, as defined in 16-10-103, but the latter wholesaler, upon resale to a retailer, is considered to be the wholesaler governed by the provisions of 16-10-103(5).
Terms Used In Montana Code 16-10-201
- Basic cost of cigarettes: means the list cost of cigarettes as reported to the department by the manufacturer without any deductions for discounts or taxes of any kind. See Montana Code 16-10-103
- Cigarettes: means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and whether or not the tobacco is flavored, adulterated, or mixed with any other ingredient, the wrapper or cover of which is made of nontobacco paper or any other substance or material except tobacco. See Montana Code 16-10-103
- cost to the wholesaler: means the basic cost of cigarettes purchased by the wholesaler from a manufacturer plus the cost of doing business by the wholesaler as evidenced by the standards and methods of accounting regularly employed by the wholesaler in the wholesaler's determination of costs for income tax reporting purposes for the total operation of the wholesaler's business. See Montana Code 16-10-103
- Retailer: means a person who operates a store, stand, booth, concession, or other outlet for the purpose of selling cigarettes at retail. See Montana Code 16-10-103
- Wholesaler: means a person who services retail outlets by maintaining an established place of business for the purchase of cigarettes and who:
(a)purchases cigarettes from a manufacturer for the purpose of selling cigarettes to retailers; or
(b)purchases cigarettes from a sole distributor, another wholesaler, or any other person for the purpose of selling cigarettes to retailers. See Montana Code 16-10-103