Dueling Montana Legalization Initiatives Filed With SOS

High Taxes Still End-Game For Policy-makers

By: WeedClub Team, Saturday, January 25, 2020 at 10:27 AM PT

The New Approach Montana committee formally submitted to the Montana Secretary of State two proposed initiatives that seek to legalize marijuana. 

The first initiative lays out the legal framework for a recreational marijuana system which would allow anyone 21+ to possess up to an ounce of marijuana product or eight grams of concentrate. It would also allow them to use marijuana, except in public areas, and grow up to four mature plants and four seedlings. It would also create licenses for "adult-use dispensaries," set a 20% tax on all recreational marijuana sales and reduce the tax on medical marijuana sales from 2% to 1%.

The second initiative would give the state of Montana the authority to raise the minimum age to purchase marijuana from 18 to 21, with a 15% tax on recreational marijuana.  

The New Approach Montana committee initiatives are now going through a series of legal reviews with the state before the committee can start gathering signatures. The initiatives will need 25,468 signatures to get onto the ballot and at least 50,936 to qualify the constitutional amendment approach.

Both Montana proposals have sky-high tax rates with 20% and 15%.  

Sooner or later, regulators need to get smart about pricing the tax rate in a way that does not dip into the customers' pockets like it is their bank machine for the government.  Proposed Federal tax rates are hovering at 5% currently such as in the MORE Act, so at least Uncle Sam is gearing up for a more reasonable pot tariff than these current double-digit rates in the state level governments.