Montana adult use cannabis sales surpass $12.8 million in launch month

The Montana Department of Revenue – an agency tasked with ensuring compliance with state tax guidelines and providing oversight for revenue collection activity and audits – has released the most up-to-date sales figures for Montana’s recreational cannabis industry. 

In January, the program’s initial month of operation, transaction values approached almost $12.9 million. In total, adult-use cannabis sales revenue in Montana amounted to $12,851,519.45.

This is according to a sales table that was shared to Twitter by a reporter affiliated with the Helena Independent Record reporter.

Sales began on January 1, but not without hesitation and skepticism from onlookers. One of the main concerns that emerged was one regarding supply. Industry experts raised concerns about the possibility of demand being too much for the nascent market to handle a common problem that tends to plague new markets. 

Revenue exceeded $1.5 million during first two days of adult-use cannabis sales in Montana

Montana’s legal cannabis market is already off to a good start, with the first two days of attracting more than $1.5 million in revenue. This impressive figure was likely stimulated by the fact that the launch date fell on a weekend. By the time the month was over, January medical cannabis sales approached $9.8 million, according to the sales table. 

Tax revenue creation is an added benefit of legal cannabis in Montana. Estimated monthly tax revenue from the adult-use cannabis market amounted to almost $2.6 million. Comparatively, tax revenue earned from the medical cannabis market which is taxed at a reduced rate measured up at $391,335.

Projections featured in the MJBizFactbook indicate that Montana’s adult-use sales revenue could top $90 million this year, before exploding to $325 million by the year 2025. With a population of 1.1 million, this forecast is entirely feasible.

Voter support led to the launch of Montana’s adult-use cannabis market 

The 2020 ballot initiative campaign that resulted in adult-use cannabis being legalized across the State of Montana wouldn’t have been possible without lobbying efforts from members of pro-cannabis group New Approach Montana. 

Fronted by the Marijuana Policy Project (MPP) and the 57 percent of voters who approved the pair of legalization measures, the legislation initiative sought to expand cannabis sales beyond the restrictive realm of Montana’s black market. 

Certain modifications were added to House Bill 701, which was passed by state lawmakers in 2021. This measure essentially steered things in the right direction for the fulfillment of Montana’s voter-approved legalization policy.

Montanans can purchase cannabis in dispensaries that are located in places where the majority of Initiative 190’s ‘yes’ voters reside A.K.A. “green counties”. Approval must take place via local referendum for “red counties” to change their status.