Montana Collects $1.8 Million in Medical Cannabis Tax Revenue in First Year

Montana Collects $1.8 Million in Medical Cannabis Tax Revenue in First Year

The state of Montana collected $1.8 million in the first year of taxing the medical marijuana industry, according to government officials. The Montana Department of Revenue also reported that the nation ’s medicinal cannabis businesses had generated approximately $45 million in earnings during the first year of taxation.

State earnings manager Gene Walborn told press that the section was happy with the rollout of taxes on Montana’s marijuana market.

“We were amazed on how well it went,” he said. “It being a new tax, we were concerned what challenges you receive with a new tax. ”

Medical Marijuana Taxes Began Last Year

Montana began levying a tax that is quarterly with the enactment of Senate Bill 333 last year on cannabis companies, an overhaul of the nation ’s medical marijuana program. Montana has not legalized cannabis’ recreational use.

Taxes for the first year began on July 1, 2017 and were set at four percent. The revenue will be used to make state regulatory infrastructure including testing, inspections, and a tracking system. The tax is expected to remain at that rate for the foreseeable future and was reduced to two percent as of July 1 of this year.

The marijuana taxes generated over $1.3 million dollars during the 2018 fiscal year. Taxes for July of this year totaled $458,000 and will be included in earnings figures for the fiscal year 2019.

Tax Revenue Exceeds Expectations

The taxes raised were almost twice as much as state officials expected. A fiscal analysis of Senate Bill 333 determined the first year that the 4% tax would raise approximately $750,000. Director Walborn said that the nation ’s medical marijuana suppliers were cooperative with the revenue department. He noted that suppliers paid their taxes than expected, leading to the department handling money that was less .

The Montana Department of Health and Human Services began issuing rules to regulate the nation ’s medical marijuana program. The department has started enrolling patients in the program and licensing cannabis companies. Regulators have also begun to track cannabis products through the country ’s supply chain.

The state has also started inspecting cannabis companies including testing labs, farming centers, edibles kitchens, manufacturers of cannabis-infused products, and dispensaries.

420 Providers Of 420

As of July, Montana officials reported a total of 420 marijuana providers had registered with the state. Of those, 72 are cannabis dispensaries. So far, three cannabis analytical testing labs are licensed by the state, with another license pending as of July.

The amount of patients s medical marijuana program the first year exceeded what government officials predicted. Montana had 26,549 patients enrolled in the medicinal cannabis program as of last month. The amount of patients began growing in 2016 following the state’s Initiative 182 was passed. That measure made it more easy for patients to enroll in the program by removing some restrictions. More than 1,000 new patients signed up each month according to state officials.

Published at Fri, 31 Aug 2018 21:59:48 +0000

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