MISSOULA COUNTY - The Missoula Board of County Commissioners held a presentation and accepted comments regarding a special election in November over a local-option marijuana excise tax during a public meeting Thursday, July 1. The discussion regarding the ballot’s language will continue at their July 15 meeting.
In November the state of Montana voted to legalize marijuana for recreational use. In his presentation, Chris Lounsbury, Missoula County Chief Administrative Officer, said that as part of the legislative process, Montana House Bill 701 was passed allowing the operation of marijuana businesses and taxation of retail sales in counties that had a majority of voters approve the initiative allowing legalization. It also gave electors the ability to authorize a local-option excise tax for up to 3% by an election.
Missoula County was 70% for and 30% against the initiative.
Recreational marijuana is taxed statewide at 20% and medicinal marijuana at 4%. The additional 3% county-wide tax could apply to just recreational, just medical or both. If approved by the voters, the tax would become effective 90 days after.
Regarding the distribution of tax revenue, 50% would be retained by Missoula County, 45% would be apportioned to municipalities on the basis of population ratio and the remaining 5% would be retained by the Montana Department of Revenue to pay for costs associated with administering the tax. In Missoula County, the city of Missoula is the only town designated as a municipality.
According to Lounsbury, in the seven states that had recreational programs in place for 2019, marijuana tax revenues represented about 0.36% of overall state budgets with revenues growing consistently over the last three years in states with more established markets.
The only attendee who commented said he was opposed to the tax. During a legislative session he heard a Colorado Drug Enforcement Administration agent say that their black markets had become worse because people were using alternatives due to the “high tax rate.” He said the agent told the legislators that they should do anything they can to lower the tax rate to encourage people to go through the legal market.
“I really think that it’s a short sighted move to keep on adding more tax,” the commenter said.
At an administrative meeting Thursday, July 15, the Commissioners will vote on the language of the election ballot which currently states, “Shall Missoula County impose a 3% local-option marijuana excise tax on the retail value of all marijuana and marijuana products sold at adult-use dispensaries and medical marijuana dispensaries within Missoula County.” The Commissioners will have the opportunity to adjust the language of the ballot based on public input.
The public comment period is open until July 15 before the meeting. Comments can be submitted by emailing to bcc@missoulacounty.us or calling 406-258-4877.
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