A Montana judge has struck down a new cumulative fee on marijuana dispensaries after a group of businesses sued the state over the new law last year.
Helena Judge Mike Menahan issued the order on Jan. 5 following a lawsuit filed by Granite Peak Holdings, TSB Montana and MaraMint, all marijuana dispensaries operating in Montana.
In early 2023, state lawmakers passed House Bill 903, which created a cumulative fee schedule on each dispensary location, even if they operated under the same license. Fees also increased cumulatively for each location, so a first location would have a $5,000 fee, the second would have a $10,000 fee, a third would have a $15,000 fee and so on. The previous fee was $5,000 for each location operated by a licensee.
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Back in November, the state agreed to a 60-day pause on the new fee schedule. Menahan’s order strikes it down permanently.
Under the now-void law, a dispensary like Granite Peak would have paid a $280,000 dispensary renewal fee instead of $50,000 for its 10 locations, in addition to $245,000 for four newly opened locations.
Menahan’s order also dictates that any fees paid under the now-void cumulative assessment will be returned to the businesses that paid them.
In his order, Menahan wrote that the previous “fee generated sufficient fees to cover the costs to the Department (of Revenue) for implementing and enforcing the (Montana Marijuana Regulation and Taxation Act).”
Holly Michels is the head of the Montana State News Bureau. You can reach her at holly.michels@lee.net
