By Josh Margolis
CHINOOK, Mont. (NMB) – With the legalization of recreational marijuana in Montana following the passage of House Bill 701 and the successful ballot initiative last November, counties that approved the initiative are deciding how to tax it.
HB 701 calls for a 20 percent tax on recreational marijuana that goes back to the state. Each county that approved the initiative also has the option to add an additional three percent local tax with voter approval. 50 percent of funds from the tax would go to the county, 45 percent would go to municipalities and five percent would go to the Department of Revenue. The funds the county receives could go into a general fund or specific budgets, such as law enforcement.
On Thursday afternoon at the Blaine County Courthouse, Blaine County Commissioners and other local officials convened to discuss their options when it comes to adding that three percent tax. Also at the meeting was Hill County Commissioner Jake Strissel, who was gathering information to take back to the Hill County Commission.
The Commission and other officials such as Undersheriff Chris Adair seemed inclined to move forward with a local tax, saying that they would welcome a new source of revenue.
The two ways this tax could get on the ballot would be either by resolution from the Commission or by a petition signed by at least 15 percent of registered voters in the county.
No action was taken at the meeting, but the Commission seemed to favor the resolution option, potentially with a process for public comment at meetings.
It is unclear when the issue would be on the ballot, but options include calling a Special Election on November 2nd, 2021, or to wait until the 2022 general election.
Recreational marijuana shops can begin operating in January 2022 in counties that approved last year’s ballot referendum. Locally, that is Hill, Blaine, Valley, Glacier and Cascade Counties.
Counties that voted against the referendum would have to pass their own local initiatives to opt-in to the sale of recreational marijuana.
