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Montana Lawmakers Approve Cannabis Tax Bill

by Matthew
May 3, 2023
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Montana Lawmakers Approve Cannabis Tax Bill
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Why it matters: Montana lawmakers have passed Senate Bill 442, which allocates revenue from recreational marijuana taxes, to Governor Greg Gianforte for consideration. The legislation gives part of the money collected to a 30-year-old wildlife habitat acquisition initiative and substance misuse programmes. Although Montana voters legalized recreational marijuana in 2020 with the passage of Initiative 190, Governor Gianforte has expressed a desire to reallocate tax revenue away from habitat purchases to increase law enforcement resources related to legalising marijuana. Several new proposals were put forward in response by lawmakers, arguing that reallocating marijuana taxes would allow the state to meet other pressing budgetary needs and give the legislature greater control over revenue.

What they are saying: Supporters of the bill argue that it will support access to rural areas and open spaces. County commissioners and conservation organizations such as Wild Montana, Helena Hunters and Anglers and the Citizen’s Elk Management Coalition all registered support for the proposal. But wildlife advocates have claimed the bill defies the will of the voters as expressed through Initiative 190.

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The big picture: Montana voters’ support for legalising recreational marijuana means that the cannabis industry will provide large numbers of new employment opportunities in the state. However, the issue of how to allocate new tax revenue from the industry remains a contentious one, with differing opinions on how it could best be used.

What to watch: Montana Governor Greg Gianforte has yet to decide whether to approve Senate Bill 442. A competing bill that would have directed all cannabis tax revenue to the state’s general fund passed in the House of Representatives last month but was tabled by a Senate committee in late April.

In total, nine US states have legalized recreational marijuana sales: Alaska, California, Colorado, Illinois, Maine, Massachusetts, Nevada, Oregon and Washington state.

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Tags: cannabis taxGovernor Greg GianforteLawsMontananewsrecreational marijuanaSenate Bill 442
Matthew

Matthew

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