Local marijuana tax hearing draws few comments
HEIDI DESCH | Hagadone News Network | UPDATED 3 years, 4 months AGO
Heidi Desch is features editor and covers Flathead County for the Daily Inter Lake. She previously served as managing editor of the Whitefish Pilot, spending 10 years at the newspaper and earning honors as best weekly newspaper in Montana. She was a reporter for the Hungry Horse News and has served as interim editor for The Western News and Bigfork Eagle. She is a graduate of the University of Montana. She can be reached at [email protected] or 406-758-4421. | July 28, 2022 12:00 AM
Fewer than a dozen people showed up for a hearing Wednesday morning as Flathead County commissioners took input on a potential local tax on marijuana sales.
County commissioners are expected early next week to vote on a resolution that could put before voters the question of whether to implement an up to 3% tax on marijuana sales in the county. Commissioners have until Aug. 25 to make a decision in order for the item to make it on the November ballot.
Chair Pam Holmquist said the board is still determining how a 3% tax might be utilized if implemented.
“We’re looking for suggestions and comments on the tax,” she told those in attendance Wednesday.
Only two individuals provided comments during the session that lasted less than 15 minutes.
Daren Engellant, business owner and president of the Evergreen Chamber of Commerce, said he’d like to see tax revenue go toward education in schools about marijuana use and for law enforcement.
The only other person to provide comment was a woman, who through tears, gave an impassioned speech detailing her son’s time spent in jail and a treatment facility as the result of using marijuana. She would like to see tax revenue generated from marijuana sales to assist those suffering from addiction.
State law requires that $6 million generated annually from the state’s 20% marijuana tax goes toward the Healing and Ending Addiction through Recovery and Treatment (HEART) account.
Adult-use recreational marijuana for those 21 or older became available for purchase on Jan. 1 in Montana.
House Bill 701 allows a marijuana excise tax via ballot initiative in Montana counties where a majority of voters approved legalization. Flathead voters approved recreational sales by a 7 point margin in the 2020 election.
Commissioners last week held a work session on the topic meeting with Sheriff Brian Heino, County Attorney Travis Ahner and representatives from the cities.
If implemented the county would receive half of the 3% tax, with the other half distributed to the cities based on their population. The county’s portion of the tax would provide an estimated $460,000 in revenue yearly, according to minutes from the work session.
“With the impacts recreational marijuana has had on county services, this tax income would assist with providing funding while potentially keeping the burden off of property taxpayers, and instead have the users of recreational marijuana fund the extra services and staff needed to address observed negative impacts,” the minutes note.
State taxes on marijuana are set at 4% for medical marijuana and 20% for adult-use sales.
As of June, the state recreational tax had generated more than $15 million in revenue, with an additional $3 million from medical marijuana sales.
Sixteen Montana counties have already created a local marijuana tax, including Lake, Missoula and Ravalli counties in western Montana.
Counties can decide how to utilize the local tax revenue.
Features Editor Heidi Desch may be reached at 758-4421 or [email protected].
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