The medical cannabis industry has been making waves around the US.
Just recently, the Montana Department of Revenue released its monthly revenue collections report and it showcased that the state has brought in $1.8 million in revenue from the medical cannabis tax, thus far.
Montana Medical Cannabis Tax
The taxes came from a four percent tax on the gross revenue of providers. As of July 1st of this year, the tax was reduced to two percent. So far, the revenue is substantially higher than what many state analysts initially predicted.
In a fiscal analysis of Senate Bill 333, the analysts predicted that with the four percent tax the state could raise around $750 thousand. Also, the number of medical marijuana patients is nearly double the expected number.
"We were pleasantly surprised on how well it went," Montana's revenue director, Gene Walborn, told KRTV. "It being a new tax, we were concerned what challenges you receive with a new tax."
The report also indicates that the medical marijuana industry brought in $45 million in total sales within the first year of taxation. Walborn told the local news station that most providers paid their taxes electronically and were extremely cooperative with the department.
Medical Marijuana Providers and Patients
As of July, Montana officials reported that there were a total of 420 medical marijuana providers registered in the state. Of those, 72 were medicinal marijuana dispensaries.
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As of last month, there were a total of 26,549 patients enrolled in the medical cannabis program. Back in 2017, it was reported that in the entire state there are around 1.05 million residents.
While the 26 thousand may seem relatively small compared to the actual number of residents in the state, it will most likely continue to grow as the program advances. According to state officials, more than 1,000 new patients signed up each month during 2017.
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