Montana Senate Advances Proposal to Reallocate Marijuana Tax Revenue

Montana Senate Advances Proposal to Reallocate Marijuana Tax Revenue

The Montana Senate has moved forward with a proposal to reallocate a significant portion of the state’s marijuana tax revenue, which amounts to tens of millions of dollars annually. On Thursday, the Senate advanced Senate Bill 307, introduced by Senate Majority Leader Tom McGillvray, a Republican from Billings. This bill proposes redirecting approximately $63 million in marijuana taxes that were previously allocated for wildlife habitat, state parks, and youth suicide prevention programs. Instead, the funds would be used to support law enforcement and substance use disorder treatment programs.

During a hearing last month, McGillvray raised concerns about the costs associated with marijuana legalization. He questioned, “If marijuana taxes are directed toward parks, trails and wildlife habitat, then who has to pick up the cost of the harms that come from the legalization and the use of marijuana?” He emphasized the need for funding to address issues like psychosis and mental challenges related to marijuana use, suggesting that property taxes might need to fund additional treatment and crisis centers.

Supporters of SB 307 argue that the state requires more financial resources to combat substance use disorder, provide education about marijuana’s effects, and ensure compliance among marijuana growers and retailers. Ben Cort, a proponent of the bill, praised its comprehensive approach to addressing substance use issues. He described it as “a stool with three legs: treatment, prevention, enforcement,” highlighting that all three components are crucial for effective results.

Opponents of the bill, however, contend that it goes against the will of Montana voters. In 2020, voters passed an initiative legalizing adult-use marijuana and establishing a 20% sales tax on it, with one-quarter of the tax revenue designated for conservation and outdoor recreation initiatives. Micah Fields, representing the Montana chapter of Backcountry Hunters and Anglers, argued that the bill would significantly reduce funding for essential conservation efforts, negatively impacting public land and recreational opportunities in the state.

In response to these concerns, McGillvray defended his proposal during the floor debate, asserting that allocating revenue based on citizen initiative is not permissible under Montana’s Constitution. He stated, “I would submit to you that the deer, the elk, the moose, the geese are all doing pretty good in Montana,” implying that the focus should shift to addressing the challenges associated with marijuana use.

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