Montana Marijuana Business

What is the Demand for Marijuana in Montana?

The National Survey on Drug Use and Health report released by the Substance Abuse and Mental Health Services Administration shows the demand for marijuana in Montana between 2018 and 2019. According to this report, an estimate of 40,000 Montana residents aged 12 - 17 used marijuana, and about 967,000 Montana residents aged 18 and older used marijuana. The first-time users of marijuana in Montana included an estimate of 17,000 residents aged between 12 and 17 years old and about 15,000 residents aged 18 and older. This shows that most of the users of marijuana in Montana were between the ages of 18 and 25, as they constituted a larger part of the marijuana users. For individuals aged 18 and above in Montana, the survey stipulates an averagely high demand for marijuana.

Montana publishes detailed reports of medical and recreational marijuana sales as reported to its Department of Revenue. Between January 2022 and April 2023, the state recorded $406 million in marijuana sales. Medical marijuana accounted for $116 million out of this total while $290 million worth of adult-use cannabis was sold in Montana during this period. The state generated a tax of $62.6 million from the marijuana sold.

How is Marijuana Taxed in Montana?

In Montana, recreational marijuana has a 20% retail sales tax scheme. The Montana Department of Revenue allows local authorities to add an additional tax of up to 3% on retail sales. Retail sales of medical marijuana will remain taxed at 4%.

The revenue would be allocated as follows:

• 4% of the revenue, up to $650,000, will be allocated to state parks, trails, recreational facilities, and wildlife protection

• $6 million will be allocated to addiction treatment services yearly

• 20% of the revenue will be for conservation

• $200,000 will be allocated to veteran services and for improving veterans’ cemeteries

• $300,000 will be allocated to the purchase of drug detection dogs

• $150,000 will be for police training

• The remaining amount will be deposited to the state’s general fund

What is the Agency Taxing Marijuana Business in Montana?

The Montana Department of Revenue was established in 1972. It regulates over 30 state taxes and fees, including income taxes, natural resource taxes, corporation and miscellaneous taxes. The Cannabis Control Division is under the Department of Revenue. The Division aims to develop a well-regulated program to safely allow individuals with debilitating medical conditions to safely access their required medications.

In addition, the Montana Department of Revenue builds up qualities for all taxable properties, including farming areas, private lands, business lands, timberland lands, business gears, rail lines and public utilities. The department regulates the activities of agency liquor stores, deals with the state wholesale liquor operations, and directs laws administering the tax assessment and authorizing alcoholic beverages. It also returns unclaimed property to its legitimate proprietors. The contact details of the Montana Department of Revenue is as follows:

125 N Roberts

Mitchell Building

St. Helena, MT 59601

P.O. Box 5805

Phone: (406) 444-0596

Fax: (406) 444-7723

Office Hours: Mondays through Fridays, between 8:00 a.m. and 5:00 p.m.