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Libby City Council proposes 3% sales tax on recreational marijuana

Posted at 2:58 PM, Mar 16, 2022
and last updated 2022-03-17 10:35:02-04

LIBBY — The Libby City Council has unanimously approved a letter requesting Lincoln County Commissioners hold an election for a 3% sales tax on the use of recreational marijuana.

Libby City Council Member Kristin Smith said funds raised through the tax would go into the city’s general fund. The money would be distributed between Lincoln County, Libby, Eureka, Troy, and Rexford, according to Smith.

She added it’s a great opportunity for Libby to capture extra revenue.

“There are challenges to raising revenues, we’re at the mercy of a lot of other factors, and I think they want to see that opportunity because it is very clearly a lucrative industry, I believe council sees an opportunity to really do some good things with those funds,” said Smith.

It is unknown at this time when county commissioners will vote on the tax.

Some cities and towns — including Missoula — already have a 3% tax on recreational marijuana in place. Meanwhile, some counties — including Ravalli and Lake — have approved putting a request before voters.

The state of Montana has placed a 20% tax on recreational sales as compared to the 4% tax on medical sales. Recreational marijuana sales became legal in the Treasure State on Jan. 1, 2022.

The Montana law allows for adults over the age of 21 to purchase up to one ounce of marijuana.