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Custer County Politics

Information for the Citizens of Custer County Montana

Tax Benefits of Approving Cannabis Sales for Both Adult Use and Medical Use

Posted: September 10, 2024

Let’s begin by clarifying the language used. “Adult use” actually means “recreational use.” “Medical use” means when a physician, or other authorized medical professional, writes a prescription for a patient’s use of cannabis as part of a treatment plan. Finally, “cannabis” means “marijuana.”

Next, this brief missive does not propose to present pro or con arguments for the use of cannabis. This presentation only ventures into the realm of financial benefits to a county in Montana.

Fact: the sale of recreational use marijuana provides substantial revenue for the county (counties) that allow it.

Fact: the use of cannabis as a recreational substance is growing in popularity. In many instances, cannabis is being used as a replacement for the recreational use of alcoholic beverages.

It is safe to assume that many residents of Custer County travel to either Rosebud County or Dawson County and purchase cannabis for recreational uses. When they pay for the cannabis, state tax is collected along with county tax. The county tax is 3%.

Based on 2024 sales of cannabis in Rosebud County, that county will collect over $98,000.00 in tax revenue this year.

To make a projection of the actual amount of tax revenue Custer County could make if the citizens vote to allow the sale of Adult Cannabis would be pure guesswork. It is safe to assume that the tax revenue would be in the tens of thousands of dollars every year.

Imagine what great things the county could do for the citizens with those tens of thousands of dollars every year.

Learn More: Montana Department of Revenue website – Cannabis Control Division

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