State collects about $380,000 from medical marijuana tax - KPAX.com | Continuous News | Missoula & Western Montana

State collects about $380,000 from medical marijuana tax

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HELENA - State leaders say they have collected about $380,000 in the first three months of a new tax on medical marijuana providers.

Providers had until Monday to report their sales for the first quarter of the fiscal year and to pay a 4% tax on them.

The Montana Department of Revenue has processed reports from 393 medical marijuana providers so far, who reported a total of about $9.5 million in revenues for July, August, and September. The average tax payment was just under $1,000, but a department spokesperson said one provider paid $30,000.

Department leaders said about 15% of the tax revenue was paid in cash while the rest came in by check or through an online payment system. Officials expected more cash than they usually collect because the medical marijuana industry operates primarily in cash.

A Revenue Department spokesperson said on Friday that they’re still processing payments.

The new tax took effect July 1 as part of Senate Bill 333, a major medical marijuana reform state lawmakers approved earlier this year. The money raised will be used to operate a marijuana tracking system and other new regulatory programs for the industry.

The tax will drop from 4% on all providers’ gross sales to 2% on July 1, 2018.

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