Taxes Are Due For State's Medical Marijuana Providers

Montana Public Radio | By Beau Baker

Published October 6, 2017 at 1:55 PM MDT

A Helena judge gave Montana medical marijuana dispensaries the OK to start serving more than three patients immediately, in recognition of a ballot initiative that passed November second.

Montana’s medical marijuana providers have to start paying taxes on their product this month.

Mary Ann Dunwell is with the Montana Department of Revenue.

“We are implementing the law that passed in the 2017 legislative session, SB 333, which instructs us to levy a tax and collect a tax on medical marijuana providers, their gross proceeds, or gross revenues,” she said.

This is the first year that providers must pay a tax after voters approved an initiative to revise Montana’s medical marijuana laws in 2016.

The new tax is set at 4 percent of gross sales through the end of June and 2 percent for subsequent years.

The Department will be accepting cash payments from providers, but highly recommends they pay in electronic or non-cash payments.

A single drop box in Helena is set up for cash payments. The Department says it will not accept cash payments at any other location.

“I wish we had drop boxes throughout the state but we don’t really have the resources to do that,” Dunwell said.

Medical marijuana is generally an all-cash business because federally regulated banks refuse to work with businesses that sell a product that is illegal under federal law.

The Department will accept tax payments from providers up until Monday, Oct. 16th.