Montana counties obtain initial local-choice cannabis tax profits

HELENA — Montana is 6 months into the launch of leisure marijuana product sales, and now, counties are receiving the initial payments of their local-alternative marijuana taxes.

Household Bill 701, which proven the recent framework for the state’s cannabis system, gave counties the likelihood to inquire voters for up to 3% taxes on adult-use and clinical cannabis gross sales. On June 15, the Montana Office of Revenue began distributing the very first of all those regional tax revenues.

Community-option taxes have begun little by little: Only 4 counties have implemented them so much, and only a few of people – Yellowstone, Missoula and Park – experienced them in place early plenty of to receive payments for the first quarter of the yr. On the other hand, that selection is soon likely to develop drastically.

Cannabis taxes are owing to the Division of Income 15 times right after the conclude of every single a few-thirty day period quarter – April 15 for the initially quarter of 2022. The point out then transfers the neighborhood tax income to counties 60 times later. The county retains 50 % of the funds and passes 45% on to any integrated municipalities in their jurisdiction. The point out keeps the remaining 5% for administration expenditures.

Yellowstone County is set to obtain $246,656 for very first-quarter income of grownup-use and health care cannabis. They will share that funding with 3 municipalities: Billings, Laurel and Broadview.

Yellowstone County Commissioner Denis Pitman instructed MTN they have not budgeted their share of the revenue nevertheless, and it will continue being in a unique account for now. He expects the county will choose a nearer glance at how to use the income up coming year, to give them time to determine out effective uses.

“There’s no issue to just start off throwing $10,000 listed here, $10,000 there,” he stated.

Missoula County only permitted a local tax on leisure gross sales, not on clinical sales. The county obtained $109,731 in 1st-quarter taxes. Missoula is the only included municipality that will share in that revenue.

Allison Franz, a spokesperson for Missoula County, explained leaders have not determined the place to direct the tax income nonetheless. They are looking at options through this year’s budgeting cycle, which is heading on presently.

Park County is acquiring $22,612 for its initially-quarter grownup-use and medical cannabis taxes. It will also transfer funding to the municipalities of Livingston and Clyde Park.

Steve Caldwell, a Park County commissioner, explained to MTN 50 % of their share of the earnings will go to the county sheriff’s office, though the relaxation will go to the standard fund.

The fourth county with a local-alternative tax in spot – Dawson County – has not acquired any tax payments still. They commenced accumulating the tax on April 2, just after the commence of the next quarter.

In ten more counties, voters accepted taxing grownup-use and health-related cannabis revenue in the June elections. Those people taxes are unable to acquire result for at least 90 times just after the acceptance. The counties will very likely get their very first payments in late 2022 or early 2023.

Lewis and Clark County, the most populous of those 10 counties, is established to implement the taxes on Oct. 1. The many others incorporate Major Horn, Blaine, Carbon, Lake, Powell, Richland, Roosevelt, Rosebud and Silver Bow.

Ravalli County voters handed a tax on leisure income in June, but narrowly rejected one on health care cannabis.

In Gallatin County, voters accepted a local-possibility tax on the two adult-use and clinical product sales. Even so, the consequence was nullified due to an administrative mistake, and the challenge will be on the ballot once again in November.