McGrath: State Receives Tobacco Settlement Payment
HELENA – Attorney General Mike McGrath said the state received $6.81 million Tuesday, the latest payment of the 1998 tobacco settlement. The payment was the ninth Montana has received over the past four years, bringing the total compensation to the state to $98.34 million.
Forty percent of the payment, or $2.72 million, will be deposited in the tobacco trust fund approved by Montana voters in November 2000. The remainder goes to the general fund.
Under the negotiated settlement, the major tobacco companies agreed to pay $206 billion to the states, as well as abide by a number of restrictions on advertising and sales. Montana was slated to receive $920 million through the year 2025. However, the settlement contains a clause allowing tobacco industry payments to decrease if the number of cigarettes sold decreases.