Montana's medical marijuana industry could hit $18.7 million in 2017

Montana’s medical marijuana industry could hit $18.7 million in 2017

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Medical marijuana will soon give a small boost to Montana’s coffers that could eventually rise to hundreds of thousands of tax dollars annually. Because of a new law that went into effect this July, the state will soon collect taxes on about $18.75 million in medical marijuana sales in 2017, the first year they’ve been collected. That estimate, released Tuesday by the Montana Department of Revenue, adds up to hundreds of thousands of dollars in tax revenue as providers begin submitting 4 percent of gross sales. The department expects the state will collect $750,000 in tax revenue in the first year of SB 333, the legislation that authorized medical marijuana in Montana. Due to administrative and startup costs to the new bill, the state will see only a fraction of that money this year, state officials said. "After you factor the startup costs for the systems, you’re down to only about $30,000 net impact to the state," Mary Ann Dunwell, Department of Revenue public information officer, said. Those costs include computer systems, cash intake locations, seed-to-sale tracking, ID cards and others. The Department of Health and Human Services also incurred costs for the bill. While medical marijuana taxes would be a nice shot in the arm for the state, they’re a drop in the bucket compared to the millions in cuts ordered by Governor Steve Bullock to offset drops in income and other tax collections and unexpected firefighting costs. The second year of the medical marijuana tax, which will be lowered to 2 percent, will generate $380,000. The state will net $300,000, according to Revenue. "Our state budget is hurting, unless we generate some sort of revenue and this is an opportunity to do that," Dunwell said. While medical marijuana taxes are a drop in the bucket, it’s still […]

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