On the ballot before Flathead County voters is whether to implement a 3% tax on marijuana sales.

In two separate questions, voters will decide whether to create a tax on recreational, as well as medical sales, of marijuana and marijuana products.

Election Day is Nov. 8.

If approved, the tax could generate annual revenue of about $880,000 based on Montana Department of Revenue estimates, according to the county. The figure is based on sales of both medical and recreational marijuana, but voters could choose to approve one and not the other.

The county would receive 50% of the funds collected, the county’s municipalities would get 45% and 5% would go to the state for administering the tax.

That means the county would receive an estimated $440,000 per year. The county’s municipalities would receive a portion of funds based on population. Kalispell would get about $250,000, Whitefish about $80,000 and Columbia Falls about $55,000.

County Administrator Pete Melnick said that based on state law funds generated from the tax would be directed to the county’s general fund.

“It can be spent in accordance with county functions,” he said. “When the commissioners looked at putting this on the ballot I think this was seen as a way, with increasing inflation and operation costs, to have an additional revenue stream that could be put to good use.”

If approved, the tax would go into effect in February of 2023. There would be no sunset to the tax.

Should it gain approval, Melnick said the county commissioners plan to hold a public comment period to take input on where to direct funds and hold a workshop in January to discuss how to spend funds.

“It’s not the windfall that people think it’s going to be,” he said. “It would be rather modest when you think about it. It’s based on sales so it could grow.”

State taxes on marijuana are set at 4% for medical marijuana and 20% for adult-use sales.

Sixteen Montana counties have already created a local marijuana tax, including Lake, Missoula and Ravalli counties in western Montana.

Features Editor Heidi Desch may be reached at 758-4421 or [email protected].