New Montana Bill Would Revise Marijuana Tax Revenue Distribution

Senate Bill 307, introduced today by State Senator T. McGillvray, proposes a significant shift in how Montana distributes its marijuana tax revenue.

The bill would allocate a larger share of funds to law enforcement efforts targeting illicit marijuana activities and expand substance misuse prevention programs.

Currently, Montana’s marijuana tax revenue is distributed across various state programs, with major allocations including 20% for wildlife habitat conservation, 4% for state parks, 4% for recreational trails, 3% (or up to $200,000) for veterans’ services, and a sizable portion directed to the Healing and Ending Addiction Through Recovery and Treatment (HEART) Fund. The remaining revenue is transferred to the state’s general fund.

Under SB 307, the new distribution plan would reduce the amount going to the general fund and redirect funds into newly created accounts:

  • 52% to the General Fund (currently the remainder goes into the general fund, which typically results in 55% to 58% of the total)
  • 24% to the HEART Fund (compared to the current $6 million cap)
  • 16% to a newly created Marijuana Prevention Account
  • 8% to a newly created Marijuana Law Enforcement Operations Account

The Marijuana Prevention Account, managed by the Department of Public Health and Human Services, would fund substance misuse prevention initiatives and youth suicide prevention efforts. Additionally, the bill would establish the Marijuana Tax Revenue Accountability Council, tasked with overseeing the expenditures and producing an annual Marijuana Impact Report detailing usage trends, health effects, and law enforcement activity.

Meanwhile, the Marijuana Law Enforcement Operations Account would finance a new Marijuana Law Enforcement Office under the Attorney General’s supervision. This office would include two regional enforcement teams, a district attorney, and a canine unit dedicated to investigating black-market operations and regulatory violations. Additionally, 1% of the account’s funds would be set aside for local law enforcement grants.

If passed, SB 307 would take effect on July 1, 2025.

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