Resolution sets vote on local pot tax
A jar of an indica strain of marijuana called Misty Kush at Fruit Factory in Columbia Falls on Wednesday, Dec. 22. (Casey Kreider/Daily Inter Lake)
Sanders County voters will consider a local option tax on marijuana sales in the county.
The county commissioners last week approved a resolution setting the date for the vote as the Nov. 8, during the general election.
A majority of Sanders County voters approved legalizing recreational marijuana sales during the 2020 election.
House Bill 701 allows a marijuana excise tax via ballot initiative in Montana counties where a majority of voters approved legalization.
According to the Montana Department of Revenue, the local tax is on the retail value of all marijuana and marijuana products sold at an adult-use dispensary or medical marijuana dispensary within a county. The rate is set by an election petition or resolution, and may not exceed 3%.
According to the resolution, 50% of the tax revenue will be retained by the county, while 45% will be apportioned to the cities in the county based on population. 5% goes to the Department of Revenue for administering the tax.
The county would use the revenue for property tax relief and to addressing housing issues.
State taxes on marijuana are set at 4% for medical marijuana and 20% for adult-use sales.
Sixteen Montana counties have already created a local marijuana tax, including Lake, Missoula and Ravalli counties in western Montana.