Montana Collects $1.8 Million in Medical Cannabis Tax Revenue in First Year
The state of Montana collected $1.8 million in the first year of taxing the medical marijuana industry, according to government officials. The Montana Department of Revenue also reported that the state’s medicinal cannabis businesses had generated approximately $45 million in sales during the first year of taxation.
State revenue director Gene Walborn told local media that the department was happy with the rollout of taxes on Montana’s medical marijuana industry.
“We were pleasantly surprised on how well it went,” he said. “It being a new tax, we were concerned what challenges you receive with a new tax.”
Medical Marijuana Taxes Began Last Year
Montana began levying a quarterly tax on cannabis businesses last year with the enactment of Senate Bill 333, an overhaul of the state’s medical marijuana program. Montana has not legalized the recreational use of cannabis.
Taxes for the first year were set at four percent and began on July 1, 2017. The revenue generated will be used to create additional state regulatory infrastructure including testing, inspections, and a seed-to-sale tracking system. The tax was subsequently reduced to 2 percent as of July 1 of this year and is expected to remain at that rate for the foreseeable future.