On June 7, voters in Lewis and Clark County, Montana, will decide on two local-option excise taxes on medical and recreational marijuana sales. The first ballot measure would impose a 3% tax on recreational marijuana sales and related products. The second ballot measure would also impose a 3% tax on medical marijuana sales and related products. The taxes would take effect on October 1, 2022.
The Lewis and Clark County Commission voted to refer the measures to the ballot on Feb. 8, 2022.
In the 2020 election, Montana voters approved I-190 by a vote of 56.90% to 43.10%. The initiative legalized the possession and use of marijuana for adults over the age of 21, imposed a 20% tax on marijuana sales, required the Department of Revenue to develop rules to regulate marijuana businesses, and allowed for the resentencing or expungement of marijuana-related crimes.
On March 29, 2021, the Montana House of Representatives introduced House Bill 701 (HB 701). It passed both chambers and was signed by Gov. Greg Gianforte (R) in May 2021. HB 701 authorized counties to impose a local-option excise tax of up to 3% on medical and recreational marijuana sales. The revenue from the tax would be distributed as follows:
- 50% to the authorizing county;
- 45% to municipalities according to share of county population; and
- 5% to the Montana Department of Revenue for administration costs.
According to the state’s Department of Revenue, in February 2022, non-medical and medical marijuana sales totaled nearly $1.7 million. With a 3% tax rate, the estimated tax revenue would be $50,643.09.