In the 2020 general election, the majority of Montana voters approved Initiative 190 legalizing the sale and tax of marijuana. In the 2021 Montana legislative session, House Bill 701 allowed for the operation of various categories of marijuana businesses and taxation of marijuana retail sales in Montana counties where the majority of voters approved I-190. Resolution 2021-086 was brought before the Board of County Commissioners on July 1, 2021, and July 15, 2021, to determine whether to add the topic to the ballot for the Nov. 2, 2021, election. They voted in favor and signed the resolution to bring the measure to the voters.

There will be an option to vote for or against taxing recreational marijuana and an option to vote for or against taxing medical marijuana. This would apply to all marijuana products sold at adult-use dispensaries and medical marijuana dispensaries in the county.

The ballot language for the first question will be:

“Shall Missoula County impose a 3% local-option marijuana excise tax on the retail value of all non-medical marijuana and non-medical marijuana products sold within Missoula County?

FOR a 3% (three percent) Marijuana Local-Option Excise Tax for all non-medical marijuana and non-medical marijuana products

AGAINST a 3% (three percent) Marijuana Local-Option Excise Tax for all non-medical marijuana and non-medical marijuana products”

The ballot language for the second question will be:

“Shall Missoula County impose a 3% local-option marijuana excise tax on the retail value of all medical marijuana and medical marijuana products sold within Missoula County?

FOR a 3% (three percent) Marijuana Local-Option Excise Tax for all medical marijuana and medical marijuana products

AGAINST a 3% (three percent) Marijuana Local-Option Excise Tax for all medical marijuana and medical marijuana products”

The tax would be 3% at the county level for both recreational and medical marijuana options. The total tax on medical marijuana, when added to the state’s 4% tax, would be 7%. The total tax for recreational marijuana, when added with the state’s 20%, would be 23%.

Based on the University of Montana Bureau of Business and Economic Research’s statewide estimates, Missoula County projects the tax would locally generate approximately $716,100 in annual revenue.

In accordance with HB 701, Missoula County would retain 50% of the resulting tax revenue; the City of Missoula, as the only incorporated municipality in the county, would retain 45% of the revenue; and the Montana Department of Revenue would retain the remaining 5% to defray costs associated with administering the tax.

In accordance with Montana law, the revenue from a local-option marijuana excise tax may be used for any activity, undertaking or administrative service that the municipality is authorized by law to perform.

Missoula County is currently considering using the tax revenue to help minimize increases to property taxes and address housing issues.

Jan. 31, 2022 (90 days later)

As of Sept. 15, 2021, there were 57 marijuana dispensaries in Missoula County registered with the Montana Department of Revenue. After Jan. 1, 2022, no new dispensaries will be able to operate for 18 months. Only previously established medical marijuana dispensaries will be able to sell recreational marijuana during that period.

In the seven states that had programs in place in 2019 for the full year, marijuana tax revenues represented about 0.36% of overall state budgets. Additionally, revenues have grown consistently over the last three years in the states with more established markets.