Jefferson County Voters to Consider Local Marijuana Sales Tax

BOULDER — Jefferson County leaders say since recreational marijuana sales began in Montana in early 2022, they have been considering the possibility of creating a local option tax on such sales in their jurisdiction. They say now was the time when it made the most sense to ask county voters if they wanted to take that step.

“You know, if it was a few hundred dollars a month to start with, is it really worth the effort to put it on the ballot and bring in that little bit of tax base to offset it?” said Cory Kirsch, who chairs the Jefferson County Commission. “The growth in marijuana sales today is so substantial that it was worth the effort to obtain this reward.”

Earlier this year, the commission approved two measures to be voted on in the November elections. One would impose a 3% local tax on adult-use marijuana sales in Jefferson County, and the other would do the same for medicinal sales.

“If they want to tax one, they can tax one and not the other,” Kirsch said. “It gives them a good choice about what they can tax.”

Currently, half of Montana’s counties – 28 out of 56 – allow recreational marijuana sales. Jefferson County is one of only two, along with Glacier County, that has not yet imposed a local option tax on these sales.

In Missoula, Ravalli, Flathead and Sanders counties, the local option tax applies to recreational sales but not medical sales. In the remaining municipalities, the tax is levied on all sales.

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The Montana Department of Revenue’s official list of licensed dispensaries shows two in Jefferson County: one in Boulder and one in Whitehall. The department reports that from July 2023 to June 2024, Jefferson County marijuana businesses made nearly $648,000 in recreational sales and another $88,000 in medicinal sales. If there had been a 3% local option tax, it would have generated about $19,400 in recreational sales and $2,600 in medical sales.

Local option tax revenue is split, with 50% going to the county, 45% going to cities and towns in the county, and 5% going to the state for administrative costs.

Jonathon Ambarian

Kirsch said if Jefferson County voters approve the tax, they plan to use the money to fill gaps in areas such as mental health response. One idea is a program to connect sheriff’s deputies with additional support when they are dealing with someone experiencing a mental health crisis.

“It helps deputies deal with these situations and hopefully calm these people down so they don’t have to be transported to a larger facility and just level them out,” Kirsch said. “That might be all they need, is just talking to someone who is good at talking to them about these things. So we’re looking at this service now, and it costs money – and if we can get some of that tax to offset that cost, that’s wonderful, and that’s what it’s for.”

Jefferson County isn’t the only place in Montana where residents will vote on marijuana taxes this year. In Custer County, voters will decide whether to allow adult-use sales and also whether to place a local option tax on adult-use or medical sales.