One of the nation’s youngest adult-use cannabis retail markets, Montana banked $16.6 million in adult-use sales and $8.3 million in medical sales in May, according to the state’s Department of Revenue (DOR).
Combined adult-use and medical sales dipped slightly, from $25.4 million in April to $24.9 million May, which in part was a factor of medical sales decreasing at a greater rate (8.9%) than adult-use sales increased (1.9%) for the month.
Other factors may include the absence of a 4/20 sales boost in May, and the fact that April had five Fridays and five Saturdays, while May had four each.
Since Montana became the 12th state to launch commercial adult-use cannabis sales on Jan. 1, 2022, retailers have recorded $76.5 million in adult-use sales and $46.7 million in medical sales—for more than $123 million combined.
Much like other maturing markets, adult-use sales have continued to grab a larger market share during that time, representing about 58% of overall sales in January and nearly 67% of overall sales in May.
In Colorado, for example, which launched adult-use sales in January 2014, adult-use sales represented nearly 82% of the licensed retail market in 2021. In Oregon, which launched adult-use sales in October 2015, adult-use sales represented more than 91% of its licensed retail market in 2021.
Through the first five months of 2022, Montana’s adult-use cannabis sales have generated $15.3 million in estimated state tax revenue, while medical sales have generated $1.9 million in estimated state tax revenue, according to DOR.
In addition, municipalities have the option to levy a local excise tax on all cannabis and cannabis products sold at an adult-use or medical dispensary within a county. That local tax rate cannot exceed 3% and must be established by an election petition or resolution.
Overall, 28 of Montana’s 56 counties participated in the state’s adult-use cannabis retail program in May, while 36 counties participated in the state’s medical cannabis retail program.
Yellowstone County, the most populous in the state with roughly 160,000 residents, accounted for an estimated $2.8 million in adult-use cannabis sales and $1.5 million in medical sales in May, more than any other county in Montana, representing roughly 17.4% of the state’s combined retail market for the month.
So far, Park, Missoula, Yellowstone and Dawson counties have established a 3% local tax rate on adult-use sales, and Park, Yellowstone and Dawson have adopted a 3% local tax rate on medical sales, too, according to DOR.