Montana to Discuss Taxation and Regulation of Medical Cannabis

Last November, citizens in Montana repealed the three-patient limit that medical cannabis providers faced. The repeal was achieved after voters passed Initiative 182. This was a victory, because the three-patient limit severely limited medical cannabis patients’ access to cannabis in Montana, according to Bozeman Daily Chronicle.

Although I-182 wasn’t supposed to repeal the patient limit until June 30, a special district court ruling on December 7 made it effective immediately. Now with a better suited medical cannabis program for patients available in Montana, state legislators must decide how to regulate the industry.

Cannabis businesses have become notorious for revenue they can generate. Democratic Governor Steve Bullock called for Montana to impose a six percent tax on medical cannabis sales. Democratic Representative Kelly McCarthy agrees with the tax, only if it is used to regulate the program. “Taxing medications—especially when we have no other example of a taxed medication in Montana—to put money in the general fund, I don’t agree with that,” McCarthy said.

While it does appear that the legislators are moving toward a tax, it has yet to be determined where the funds will be allocated if so. The legislators are also discussing a way to find a better balance on medical cannabis dispensaries. Representative Daniel Zolnikov said he would like to find regulations that are not as strict as the three-patient limit, but that also avoids “really out of control medical marijuana where anybody can get it.”

Zolnikov is aware of the many other regulations necessary in cannabis industries, from cannabis testing facilities, residency requirements for cannabis providers, enacting plants-per-patients limits and more. When it came to figuring out these regulations, Zolnikov stated, “[Voters] just want this to be done right and taken care of.”

Other legislators like Steve Zabawa, who is the Director of the anti-cannabis group Safe Montana, are looking to put harsh restrictions on the medical cannabis industry or even repeal it entirely.