The Local Options Marijuana Excise tax is a tax on the retail value of all marijuana and marijuana products sold at an adult use dispensary or medical marijuana dispensary within a county.

The rate of the Local Options Tax must be established by the election petition or resolution. The rate may not exceed 3%.

Distribution of Local Option Marijuana Excise tax:

• 50% of the resulting tax revenue must be retained by the county
• 45% of the resulting tax revenue must be appropriated to the municipalities on the basis of the ratio of the population of the city or town to the total county population
• 5% of the resulting tax revenue must be retained by the department to defray cost associated with administering the Local Option Marijuana Excise tax

*Regarding Estimated Sales Data

The Department of Revenue assesses the Adult Use and Medical Cannabis Tax on the “Retail Price” of all marijuana or marijuana products.

“Retail Price” is defined as the established price paid by the consumer for marijuana or a marijuana product at an adult use dispensary or medical marijuana dispensary. This established price would not include any discounts or reductions.

The reported monthly sales data shown in these tables may include discounted or reduced purchase prices paid by a purchaser. A discounted or reduced purchase price amount may not reflect the actual “Retail Price.”

Local Option Tax is not derived from estimated sales reports. Local option distributions are connected to the sales taxes collected by licensees and submitted to the Department of Revenue prior to the end of the applicable collection period. Please visit Local Option Tax Distribution for additional information.

For more information on Montana’s general provisions for cannabis taxation, please visit 15-64-10, MCA.