Voters to Decide on Whether to Additionally Tax Marijuana

The Flathead County commissioners at their Aug. 2 meeting voted 2-1 to let voters decide whether to add a 3% excise tax for recreational and medical marijuana in the county.

Commissioner Randy Brodehl was the dissenting voice in both votes, saying he did not see a need for any additional taxes on residents.

“In my mind I haven’t heard information on whether marijuana use has cost the county,” Brodehl said. He added that in discussions with the county sheriff and attorney he had not received the numbers indicating a fiscal cost to any departments in the 18 months since recreational marijuana was legalized.

“If we don’t have a need, then I’m not for increasing taxes,” Brodehl said. “Until I see we have an actual need to put a consumer tax on it, I’m not supportive of going down this road and putting it on the ballot.”

Following the passage of HB 701, which legalized recreational marijuana in Montana beginning in 2021, counties have had the option of leveraging a 3% tax in addition to the statewide tax.

While the legislation allowed counties to put the local-option tax to voters beginning in 2021, Flathead County opted against it last year. Currently 16 Montana counties, including Lake and Missoula, have voted for the tax.

Should Flathead voters approve the measure, medical marijuana would be taxed at 7%, while recreational marijuana would be 23% when added to the state tax. Revenue from the local tax would be split between the county (50%) and local municipalities (45%) with the remainder going to defray administration costs. County staff estimate that Flathead County’s portion of the tax would be roughly $460,000 per year.

Commissioner Pam Holmquist said that she would have liked the ability to sunset the tax in a few years to allow citizens to reevaluate whether the revenue was being spent appropriately, but that was not an option for the measure. “A consumption tax is what I look at it as,” Holmquist said. “I think at the end of the day it may be a benefit to different departments. We’re not sure where yet, but I’m sure we will put it to good use.”

The commissioners held a public comment session on July 27, but only two individuals provided comment.

“Although the public comment was low at our public meeting I have talked to numerous members of the public and received several emails, with most in favor of putting this issue on the ballot,” said Commissioner Brad Abell. “I believe this will pass overwhelmingly, but it is ultimately up to the voters as it should be.”

Following certification of the two measures’ language by the elections department, both tax options will appear on the November ballot.