First quarter of adult-use marijuana sales in Montana ends, taxes due Apr. 15

Posted at 11:25 AM, Apr 02, 2022

HELENA — April 1 was a milestone for Montana’s marijuana industry – the end of the first quarter of recreational sales in the state.

Montana is collecting marijuana taxes quarterly, on every three months of sales. That means dispensaries will now start preparing tax returns to turn into the Montana Department of Revenue. Payments will be due to the department on Apr. 15.

In January, DOR recorded $14,141,896 in adult-use marijuana sales and $10,143,749 in medical sales. Those numbers were $13,533,697 and $9,357,698 respectively in February – slightly lower overall, but higher average daily sales. The sales numbers for March had not yet been released by Friday afternoon.

You can find the latest sales numbers on the Department of Revenue website.

The first two months’ sales totaled $27,675,594 for recreational marijuana and $19,501,448 for medical. DOR estimates that could bring in a total of $6,315,176 in state revenues, based on the 20% tax on adult-use sales and 4% tax on medical sales.

In addition, Park and Yellowstone Counties have placed local 3% taxes on adult-use and medical marijuana, while Missoula County has adopted a 3% tax only on adult-use sales. Dawson County will implement 3% taxes on all marijuana sales starting this month.

So far, the adult-use sales numbers are relatively in line with earlier predictions. A 2020 report from the University of Montana’s Bureau of Business and Economic Research projected about $217 million in recreational marijuana sales over the first year of legalization. When analyzing the marijuana reform bill state lawmakers passed in 2021, the Governor’s Office of Budget and Program Planning adjusted those numbers – predicting only $130 million in sales in 2022 because of the limited number of providers allowed under the law.