Montana: A Wet Funding State for Alcohol

Yes, Montana is a "wet funding" state** for alcohol regulation.

What "Wet Funding" Means

In alcohol beverage control, **"wet funding"** (or **license state**) means:

• Alcohol production, distribution, and retail are **privately owned and operated**.
• The state **does not** act as the sole wholesaler or retailer (unlike "control states").
• Revenue comes from **license fees and excise taxes**, not markup/profits.

Montana's System

• Department of Revenue — Liquor Control Division regulates licensing, compliance, tax collection.
• Three-tier system: Manufacturer → Distributor → Retailer (mostly). Some exceptions: small breweries/wineries can self-distribute limited quantities; distilleries can sell direct (tasting rooms).
• Licenses: Quota system for on-premise (bars/restaurants) by population. Off-premise (stores) less restricted.
• Taxes (2024): Beer $0.14/gal, Wine $1.06/gal, Spirits $9.74/gal (plus license fees).

Control State Contrast

17 **control states** (NH, VT, ME, PA, OH, MI, IA, MS, AL, ID, OR, WA, UT, VA, NC, WV, MT? No — MT is **license/wet**). Montana has **never** been a control state.

Neighbors: **Idaho, Wyoming, North Dakota, South Dakota** = license states. **Washington, Oregon, Utah** = control states.

Montana's wet funding = private market, state regulates & taxes.