Lincoln County puts local marijuana tax to voters

Lincoln County will seek a tax on recreational and medicinal marijuana.

At the July 26 commissioner’s meeting, the vote on a resolution for a 3% tax on retail sales of both categories of marijuana was unanimous. Registered voters will decide the matter in a special election on Tuesday, Nov. 7.

The county will host a public hearing at 11 a.m. Wednesday, Aug. 16, to accept public comment on the proposal. The commissioners will accept written and verbal comments.

Since the state Legislature passed a law in 2021 to regulate the operation and taxation of marijuana businesses and sales, 25 counties have approved a 3% tax on adult-use marijuana. For medical use, 23 counties approved the tax.

Voters in neighboring counties have taken different approaches to the tax. Flathead County has a tax for recreational, but not medicinal, cannabis. Sanders County said yes to recreational marijuana while Lake and Mineral counties collect a tax on both.

According to the state Department of Revenue, it already collects a 4% tax for medical marijuana and 20% for recreational sales.

The county estimates total revenues will run about $126,000. If voters approve the measure, 50% of the revenue will go to Lincoln County's coffers while 45% will go to Libby, Troy and Eureka. The split among the three cities will be based upon population. All three cities have indicated their interest in such a tax. Five percent will go to the state.

The commissioners believe a marijuana tax would help with generating more revenue. The money would be used for any activity, undertaking or administrative service.

According to the Daily Montanan, legislators had a plan on how to re-allocate the more than $50-plus million in annual revenue, but Gov. Greg Gianforte vetoed Senate Bill 442 in May. If approved, some of the money would have went to county road maintenance. Gianforte reportedly wanted more money to go to the state Department of Justice.

Currently, the money from the state taxes goes to addiction treatment, wildlife habitat, veterans and the general fund.

$6 million is allocated to the Healing and Ending Addiction through Recovery and Treatment account. Montana Fish, Wildlife and Parks gets 20% for wildlife habitat while 4% each goes to state parks, trails and recreational facilities and a non-game wildlife account. Three percent or $200,000, whichever is less, goes to veterans and surviving spouses state special revenue account, $150,000 to the board of crime control to fund crisis intervention team training and the remainder to the general fund.

Sixty-three percent of Libby voters approved Montana's 2020 initiative petition fully to legalize cannabis in limited quantities for use by adults aged 21 years and older.

Election administrator Melanie Howell said the measure will be available for county residents to vote on in person or by mail.

“For people who live outside of Libby, Troy and Eureka, ballots will be mailed to them,” Howell said. “We don’t expect people from up in the Yaak or other isolated areas to drive into a polling place to vote.”

Residents voting in person may do so at the Memorial Events Center in Libby, the Troy Activity Center and the High Road Youth Center in Eureka.

“People are still welcome to mail their ballots or drop them off,” Howell said.

If voters approve the measure, it would go into effect on Jan. 1, 2024.