Montana Governor Proposes Medical Cannabis Tax

Montana officials aren’t wasting any time trying to flesh out the state’s new medical cannabis program. Governor Steve Bullock of Montana has proposed a six percent tax on medical cannabis in his biennial budget that’s estimated to bring in millions of dollars annually. While it’s in its earliest phase of legislative progress, this is a quick step towards establishing its regulatory framework.

According to Montana Public Radio, Bullock’s staff agreed that his tax was essential to funding the medical cannabis program that voters chose on Election Day. “Fifty-seven percent of Montanans said medical marijuana will be legal within our state,” says Dan Villa, the governor’s budget director, “It’s the government’s job to listen to that will and to make the system work. What this proposal is doing is making sure that we have the resources necessary to implement the costs, both in the short and the long term.”

The tax could possibly bring in $2.6 million through the next two years, and Villa estimates that the new medical cannabis program alone will likely cost about $1 million to run the program. Montana Public Radio states that if the tax money is not completely spent, that the Governor’s office would be given to lawmakers to use for other purposes.

“It goes to the state general fund. There’s actually costs built in to accommodate what we are expecting to be a rejuvenated industry, after the years of question marks that have been around the prescription drug; I think now everybody can project that there will be increased use, increased utilization, so that the consumption tax will help the state accommodate that additional cost, as opposed to having income tax, or property tax or some other revenue stream make up for that,” Villa said.

Bullock’s proposal will not be considered by lawmakers until January, when the legislative session begins once again.