(1) Credits of the statutory rate for tobacco products shall be granted in accordance with the provisions of 15-1-503, MCA, in cases where the tobacco products purchased and delivered become unsaleable. A manufacturer's credit memo will be required for proof of returned merchandise. During the first 180 days of a tax rate change, refund applications will be issued using the previous tax rate unless the department receives evidence that the tax paid on the application was paid at the new tax rate.

(2) Credits will be granted for tobacco products shipped from Montana and destined for retail sale and consumption outside Montana on which the tax has been paid. Evidence of the original sales slips or invoices will be required for proof of sales to out-of-state retailers.