Montana’s First-Month Cannabis Sales Total $22.6M

Montana’s First-Month Cannabis Sales Total $22.6M

After launching its adult-use cannabis market on January 1, Montana closed out the month with $22.6 million in total cannabis sales, including nearly $12.9 million in recreational sales, according to Department of Revenue data outlined by KULR-8. Medical cannabis sales in the state totaled nearly $9.8 million during the same timeframe.

With a 20% tax rate for adult-use products and a 4% tax on medical products, cannabis sales throughout the month generated a combined $2.9 million in taxes for the state.

Montana voters approved an adult-use initiative in 2020 to legalize the possession of up to an ounce of cannabis flower and the home cultivation of up to four plants for adults aged 21 or older. That initiative took effect on January 1, 2021.

The state’s Republican-controlled Legislature later approved rules for the plant’s commercial distribution, which were signed into law by Gov. Greg Gianforte (R) last May, and the program launched on January 1, 2022. Under the rules, only medical cannabis companies can be licensed for adult-use operations for the first 18 months. Additionally, adult-use sales will not be available in counties where voters initially rejected the reforms — instead, localities will have to opt into the industry through local elections.

Montana’s cannabis legalization language also included a clause for people with cannabis-related criminal convictions to get them stripped from their record but the courts have reported relatively low interest in the expungement possibilities.