Credit for Income Taxes Paid to Another State or Country for Pass-Through Entity Taxes

Montana residents who are owners of a pass-through entity (PTE) that paid income taxes in another state may be eligible for the credit for the income taxes paid to another state. The credit is available for a resident’s distributive share of an income tax imposed by and paid to another state on the PTE’s activity in that state. The tax may be paid by the owner or the PTE itself. Examples of taxes that qualify for the credit include:

  • Pass-through entity composite taxes
  • Excise taxes or franchise taxes that are imposed and measured on net income
  • Pass-through entity taxes paid on income derived from sources within the other state

The credit is only available to the extent of the owner’s income tax liability in the other state. It isn’t allowed on any excess tax paid by the PTE in that other state carried over to the next year.

To calculate the credit, the pass-through owner uses the owner’s distributive share of the other state’s tax paid to the other state. The owner’s distributive share of income sourced to the other state, as well as the amount of tax paid, must be clearly identified on documentation received from the PTE. The credit is claimed on Form 2, Credit for Income Tax Paid to Another State or Country Schedule. Before claiming the credit, the owner’s distributive share of any deduction for the other state’s income tax must be added back to Federal Adjusted Gross Income. Report the add-back of the other state’s income tax on Form 2, Additions Schedule, line 14.

For more information see Credit for Income Taxes Paid to Another State or Country.

Department Rulemaking Activity for November 4, 2022

Proposal Notices

MAR 42-1062

MAR 42-1062pro – pertaining to updates of the Montana Reappraisal Plan and Classification and Valuation Manuals

Public Hearing
November 28, 2022
Comment Deadline
December 5, 2022
Related Documents

MAR 42-1063

MAR 42-1063pro – pertaining to agricultural commodity prices and values

Public Hearing
November 28, 2022
Comment Deadline
December 5, 2022
Related Documents

MAR 42-1064

MAR 42-1064pro – pertaining to revisions to railroad income apportionment factors

Public Hearing
November 28, 2022
Comment Deadline
December 5, 2022
Related Documents

MAR 42-1065

MAR 42-1065pro – pertaining to 2023 Personal Property Depreciation Schedules and Trend Tables

Public Hearing
November 28, 2022
Comment Deadline
December 5, 2022
Related Documents

Upcoming Tax Webinars – Tax News You Can Use

The Department of Revenue announces three income tax webinars this December.

Annual Tax Update: December 6, 2022

10 am – 11 am

This webinar will provide an overview of Montana tax law updates for the 2023 tax filing season. We’ll cover updates to the Individual Income Tax form (Form 2), Income Tax Return for Estates and Trusts (Form FID-3), and Pass-Through Entity Tax Return (Form PTE) as well as pertinent legislative changes. Finally, we’ll provide a brief update on other Montana income tax news.

Learn more here. 

Elderly Homeowner/Renter Credit: December 8, 2022 

10 am – 11 am

The Elderly Homeowner/Renter Credit is a tax credit available to low-income Montana resident taxpayers over the age of 62. This webinar will cover the eligibility requirements and how to file for the credit.

Learn more here.

Income Tax Simplification in Tax Year 2024: December 13, 2022

10 am – 11 am

Montana’s individual income tax system will undergo big changes beginning in tax year 2024. We are hosting this webinar to explain those changes. During the webinar, we will provide an overview of the changes, so you know what to expect and plan for in 2024 and in the 2025 tax filing season.

Learn more here.

Cannabis Control Division November Newsletter

In this month’s newsletter, learn more about the following: 

  • Transporter license requirements 
  • Reminder regarding custom labels 
  • Cannabis testing 
  • Fraudulent activities against marijuana businesses 
  • Reminder regarding license renewal timing 

Transporter license requirements

A Transporter License is only required if you plan to transport marijuana or marijuana products belonging to another licensee.   

A Transporter License is not required if you are transporting your own marijuana and marijuana products.  For a product to be considered “yours” for purposes of transporting, it must be entered into your Metrc inventory prior to transport.   

Reminder regarding custom labels

Dispensary licensees are required to submit custom (i.e. contains graphics and/or logos) packaging applications (and possibly custom labeling applications) for any new marijuana or marijuana products that they are selling. 

Additionally, dispensary licensees that have had their custom label/package denied and have not resubmitted their revisions must do so before they can sell those products.  

Cannabis testing

Reminder: marijuana product testing must be done when the product is it its final form and in its final packaging.   

ARM 37.107.316(2) states that “All marijuana items intended for direct sale or transfer to customers shall be tested in its final form. The addition of any ingredient after final quality assurance compliance testing will require retesting.” 

The Department of Public Health and Human Services Quality Assurance Sampling Protocol for Usable Marijuana, Marijuana Concentrates and Extracts, and Marijuana Infused Products, which is incorporated by reference in ARM 37.107.310, states that “the process lot shall be in its final packaging at the time of testing.”   

Pursuant to these provisions, testing must be done when the product is in its final form and in its final packaging

Fraudulent activities against marijuana businesses

There are reports of increased fraudulent activity reported from licensed marijuana businesses across the nation:   

  • Marijuana licensees are being contacted by an individual or entity that desires to place a sizeable order of marijuana and/or marijuana products on behalf of another licensee.  
  • The interested party is knowledgeable about how to place an order for marijuana/ marijuana products, and therefore appears to be credible. 
  • When the licensed marijuana transporter arrives, the delivery address is not a valid marijuana licensee’s premises. 

Marijuana licensees are encouraged to have their employees confirm the validity of the potential purchase(s) and the associated delivery address with their manager(s) and/or owner(s), prior to delivery.

Reminder regarding license renewal timing

Please remember to submit your renewal application at least sixty days before the expiration of your license to avoid any interruption to your business operations. 

Licensing information requirements can be found here 

More questions?

Cannabis Control Division October Newsletter

In this month’s newsletter: 

  • Minors and dispensaries 
  • Know before you grow 
  • Trade shows and community events 
  • Alcohol at licensed premises 

Minors and dispensaries

Minors are not allowed in dispensaries unless they are: 

  1. a registered cardholder; and  
  2. accompanied by their parent or legal guardian 

Know Before You Grow

Are you a Montana resident, 21 years of age or older, and interested in self-cultivation and self-storage of your own personal marijuana?

The Cannabis Control Division has information for those individuals interested in personal marijuana cultivation who may be unaware of the current rules and regulations.

Trade shows and community events

CCD would like to remind all marijuana-related businesses that while attending or having a ‘booth’ at trade shows or similar community events, that no product of any kind can be given away, demonstrated, or sold.

These events are not considered licensed locations, which is a requirement for any marijuana transactions.

Alcohol at licensed premises

Reminder: pursuant to 16-12-208(7), MCA, a marijuana dispensary may not sell or otherwise transfer alcohol from a licensed premises. This includes offering free alcohol at community events such as Missoula’s First Friday, Helena’s Art Walk, and the like.

More questions?

A Message to State Licensees with Access to the Metrc System

Updated October 3, 2022

Metrc has alerted the CCD that the reported system errors in Montana have been resolved.

If you experience any Metrc issues, please contact Metrc Support at support@metrc.com or 877-566-6506.

Metrc understands that system uptime and performance is of utmost importance to the success of your business operations. While we continue to identify the root cause to ensure the issue does not occur again, we wanted to take the opportunity to thank you for your patience as we worked toward a resolution.

Department Rulemaking Activity for September 23, 2022

MAR 42-1052

MAR 42-1052adp – pertaining to department implementation of legislation for House Bills 157, 226, 525, 705 and Senate Bill 320 enacted by the 2021 Montana Legislature.
Comments were received – changes were made

Effective Date
September 26, 2022
Related Documents

MAR 42-1054

MAR 42-1054adp – pertaining to property tax exemption process revisions
Comments were received – changes were made

Effective Date
September 24, 2022
Related Documents

MAR 42-1055

MAR 42-1055adp – pertaining to tribal government applications for temporary property tax exemptions.
Comments were received – changes were made

Effective Date
September 24, 2022
Related Documents

MAR 42-1060

MAR 42-1060adp – pertaining to a waste management process revision
Comments were received – changes were made

Effective Date
September 24, 2022
Related Documents

MAR 42-1061

MAR 42-1061adp – pertaining to Montana Education Savings Plans (529 plans)
No comments were received – no changes were made.

Effective Date
September 24, 2022
Related Documents

Department Rulemaking Filings for September 9, 2022

Adoption Notices

MAR 42-1056

MAR 42-1056adp – pertaining to adopting the Multistate Tax Commission’s Model Statute for Reporting Adjustments to Federal Taxable Income and Federal Partnership Audit Adjustments

No comments were received; rules amended as proposed. Rules effective September 10, 2022

Related Documents

MAR 42-1057adp – pertaining to the extension of deadlines for a taxpayer to appeal an audit determination or a final determination

Comments were received; rules amended as proposed. Rules effective September 10, 2022

Related Documents

Notices of Decision (Withdrawal)

MAR 42-1058

MAR 42-1058nod – pertaining to the creation of additional canopy license tiers for marijuana cultivators

After receiving public comment on the rulemaking proposal notice, the department is withdrawing MAR Notice No. 42-1058 from consideration.

Related Documents

MAR 42-1059

MAR 42-1059nod – pertaining to the authorization of marijuana dispensary customer loyalty programs

After receiving comment from the public and the Economic Affairs Interim Committee on the rulemaking proposal notice, the department is withdrawing MAR Notice No. 42-1059 from consideration.

Related Documents

Cannabis Control Division September Newsletter

In this month’s newsletter, learn more about the following: 

  • CCD call center options updated 
  • Reminder: filing requirement for $0 return 
  • Updated generic labeling templates 

CCD call center options updated 

In our ongoing efforts to improve our service, the CCD Call Center options have been updated.  

What choices will you hear when you call us at (406) 444-0596? 

Option 1 – Make a Payment 

Option 2 – Medical Cards 

Option 3 – Worker Permits 

Option 4 – Business Licenses 

Option 5 – Education Specialists 

Option 6 – Cannabis Tax 

Press 0 – This option can be selected at any time and will transfer to one of our licensing technicians. 

Reminder: filing requirement for $0 returns 

Everyone who has a dispensary license must file a quarterly return, even if that dispensary has zero sales for the quarter. Zero sales can also include suspended dispensary licenses. The minimum penalty for not filing or filing late is $50, so it is important to file timely. The return is due on the 15th day following the quarter end date.  

 Zero-dollar returns can be submitted through the TransAction Portal (TAP). 

Updated generic labeling templates 

After receiving feedback regarding the current generic labeling templates available on our website, CCD has generated new generic labels that are now available to licensees at no cost.  

 These labels are smaller in size and allow a licensee to fill in their facts panel information for their marijuana flower and marijuana products. 

More questions?

Department Rulemaking Filings for August 26, 2022

Amended Proposal Notice

MAR 42-1052

MAR 42-1052 – Pertaining to department implementation of legislation for House Bills 157, 226, 525, 705, and SB 320 enacted  by 2021 Montana Legislature.

*Amendments are being made to the original proposal notice in response to comments received and legislative interim committee objection*

No additional public hearing will be held.

Comment period has been extended until 5:00 p.m., September 2, 2022

Related Documents

Adoption Notices

MAR 42-1046

MAR 42-1046 – pertaining to department procedures involving penalties against alcoholic beverages licenses.

Comments were received – changes were made.

Effective Date: August 27, 2022

Related Documents

MAR 42-1053

MAR 42-1053 – pertaining to Montana Marijuana Regulation and Taxation Act post-legislative rules revisions and contested case rules updates.

Comments were received – changes were made

Effective Date: August 27, 2022

Related Documents

Cannabis Control Division August Newsletter

In this month’s newsletter, learn more about the following:

  • Clarification regarding curbside service and delivery
  • Cyberattacks-how they can affect your business and protective strategies
  • Renewal timing
  • Product packaging and labeling changes after department approval
  • Post inspection report
  • Guide to submitting Statement of Deficiencies Response
  • Edible guideline: branded products

Clarification regarding curbside service and delivery

CCD wishes to remind all dispensaries that curbside service and delivery of marijuana products is only permitted for registered cardholders:
MCA 16-12-207 (4): A licensee may not sell or otherwise transfer marijuana or marijuana products through a drive-up window, except that a dispensary may hand-deliver marijuana or marijuana products to a registered cardholder in a vehicle that is parked immediately outside the subject dispensary.

Cyberattacks

Cyberattacks can pose a serious threat to businesses, including the marijuana industry.

For tips on how to assist your business in mitigating these attacks, click on this article.

Renewal Timing

Please remember to submit your renewal application at least sixty days before the expiration of your license to avoid any interruption to your business operations.

Packaging and labeling changes after department approval

Reminder: If your packaging and labeling does change, you need to reapply to CCD for review and reapproval.
CCD strongly encourages ALL licensees to reference the Labeling and Packaging Guide, as well as the Package and Label Submission Guide available on our website.

Post inspection report

After a licensee is inspected by the department, the licensee will receive a post inspection report, even if no deficiencies are identified or corrective action required.

Guide to submitting Statement of Deficiencies Response

Are you a licensee that needs to submit a Statement of Deficiencies Response and the Required Documentation, post-inspection? CCD has created a guide to assist you. Click here.

Guideline for edibles: branded products

Per ARM 42.39.401(12), marijuana manufacturers are not permitted to use a branded, commercially manufactured food product as an edible. Licensees carrying commercially recognizable products (e.g. Rice Krispy treats, Nerd ropes, etc.) will be permitted to sell out of their current inventory

More questions?

Department Rulemaking Actions for August 5, 2022

Proposal Notices

MAR 42-1055 – pertaining to tribal government applications for temporary property tax exemptions.

Public Hearing
August 26, 2022
Comment Deadline
September 6, 2022

Related Documents

MAR 42-1060pro – pertaining to a waste management process revision.

Public Hearing
August 26, 2022
Comment Deadline
September 6, 2022

Related Documents

MAR 42-1061pro – pertaining to Montana Education Savings Plans (529 plans)

Public Hearing
August 26, 2022
Comment Deadline
September 6, 2022

Related Documents

Department Rulemaking Filing for July 22, 2022

Proposal Notices

MAR 42-1052

MAR 42-1052pro – pertaining to department implementation of legislation for House Bills 157, 226, 525, 705 and Senate Bill 320 enacted by the 2021 Montana Legislature

Public Hearing
August 12, 2022 @ 10:30 a.m.
Comment Deadline
August 22, 2022

Related Documents

MAR 42-1054

MAR 42-1054pro – pertaining to property tax exemption process revisions

Public Hearing
August 15, 2022 @ 11:00 a.m.
Comment Deadline
August 22, 2022

Related Documents

MAR 42-1056

MAR 42-1056pro – pertaining to adopting the Multistate Tax Commission’s Model Statute for Reporting Adjustments to Federal Taxable Income and Federal Partnership Audit Adjustments

Public Hearing
August 15, 2022 @ 12:00 p.m.
Comment Deadline
August 22, 2022

Related Documents

MAR 42-1057

MAR 42-1057pro – pertaining to the extension of deadlines for a taxpayer to appeal an audit determination or a final determination

Public Hearing
August 15, 2022 @ 1:00 p.m.
Comment Deadline
August 22, 2022

Related Documents

MAR 42-1058

MAR 42-1058pro – pertaining to the creation of additional canopy license tiers for marijuana cultivators

Public Hearing
August 16, 2022 @ 11:00 a.m.
Comment Deadline
August 23, 2022

Related Documents

MAR 42-1059

MAR 42-1059pro – pertaining to the authorization of marijuana dispensary customer loyalty programs

Public Hearing
August 16, 2022
Comment Deadline
August 23, 2022

Related Documents

Cannabis Control Division July Newsletter

In this month’s newsletter, learn more about the following:

  • Application for packaging and labeling available in TAP
  • Advertising rules and violations
  • Email address – required!
  • Cannabis-related tax questions: new phone number available
  • Sales tax, loyalty programs, and discounts
  • ARM and MCA availability

Packaging and Labeling

The Packaging and Labeling application is now available on the TransAction Portal (https://tap.dor.mt.gov).

To be compliant with the new packaging and labeling requirements, all licensees must submit their packaging and labeling applications for review by the Cannabis Control Division (CCD) by August 1, 2022.

Licensees who fail to submit applications for approval of packaging and labeling by August 1, 2022, will be subject to disciplinary proceedings.

CCD strongly encourages ALL licensees to reference the Labeling and Packaging Guide, as well as the Package and Label Submission Guide available on our website

Advertising Rules

Reminder: all licensees are required to be familiar with and comply with Montana’s marijuana and marijuana product advertising rules. Requirements are detailed at ARM 42.39.123 Advertising.

Email address: required!

Pursuant to ARM 42.39.105(2) General Licensee Requirements, licensees are responsible for ensuring the department has their current and working email addresses on file to receive department correspondence.

Failure to respond to certain department correspondence, such as deficiency letters and Notices of Proposed Department Action, could result in disciplinary action.

Cannabis-related tax questions

Do you have questions regarding taxes for cannabis? The Miscellaneous Tax Division now has a phone line for cannabis-related tax questions. Give them a call at 406.444.7040. You can also email them at DORMiscTax@mt.gov

Sales tax, loyalty programs, and discounts

After reviewing 2022 Quarter 1 Sales as reported in Metrc, the Cannabis
Control Division (CCD) reiterates its guidance on calculating Sales Tax.

Cannabis taxes are administered by the Department of Revenue’s Miscellaneous Tax Unit. CCD is working to improve consistency and transparency regarding how Cannabis Sales Taxes are calculated and assessed at the Point of Sale.

Please be aware of these key points:

  • If a discounted sale is offered consistently to all your customers, then this discount would be non-taxable. This means the updated established retail price, or discounted price, is the amount that you would collect the applicable sales tax rate on.

If a Loyalty Points or similar customer rewards program are offered consistently and are available to all customers, then these Loyalty Points would be considered non-taxable. The updated established retail price that the applicable sales tax rate would be levied against becomes the retail price after applicable Loyalty Points have been deducted.

Please visit the FAQ portion of our website for more guidance on Sales Tax Calculations: https://mtrevenue.gov/cannabis/faqs/#CannabisTaxFAQ

If you need additional guidance or have questions about Sales Tax Calculation, please contact DOR’s Miscellaneous Tax Unit at (406) 444-7040 or DORMiscTax@mt.gov

Links to ARM and MCA

Uncertain where to find the relevant statutes and rules for Montana Marijuana Regulation and Taxation Act (MMRTA)?

Please visit our website and check out the Program Resources section:

https://mtrevenue.gov/cannabis/

More questions?

Department Rulemaking Actions for June 24, 2022

Proposal Notices

MAR 42-1053pro – pertaining to Montana Marijuana Regulation and Taxation Act post-legislative rules revisions and contested case rules updates

Public Hearing: July 18, 2022

Comment Deadline: July 25, 2022

Cannabis Packaging and Labeling Application Now Available in TAP

The Packaging and Labeling application is now available for submission on the TransAction Portal (TAP).

Prior to selling, offering for sale, or transferring marijuana or marijuana product that is for ultimate sale to a consumer or registered cardholder, a licensee or license applicant shall submit and receive approval from the department for packaging, labeling, and exit package applications. Licensees are required to follow the labeling and packaging rules, as it is their responsibility to know, understand, and operate within the rules.

The rules can be found in ARM 42.39.314 through ARM 42.39.319.

To be compliant with the new packaging and labeling requirements, all licensees must submit their packaging and labeling applications to be reviewed by the Cannabis Control Division (CCD) by August 1, 2022. A licensee that fails to submit applications for approval of packaging and labeling by August 1, 2022, shall be subject to disciplinary proceedings.

Licensees may continue to use packaging and labeling that is compliant with the former Montana Medical Marijuana Act (Title 50, chapter 46, MCA) while awaiting the department’s approval of their applications, provided the applications were submitted by August 1, 2022.

All marijuana and marijuana products presented for sale must be affixed with approved labeling and in approved packaging no later than January 1, 2023. Licensees shall repackage or relabel all marijuana and marijuana products on or before January 1, 2023, as necessary, to comply with this provision.

After packaging or labeling has been approved, the approved licensee need not reapply for label, package, or exit package compliance approval as long as there are no changes to the labeling, packaging, or exit packaging.

Applicants will be given the option of selecting and affirming the use of generic labels/packages. If the applicant submits a generic packaging/labeling application, there is no fee associated for that item on the application, nor will an attachment of the label/packaging (photo or accurate rendering) be required.

Custom (non-generic) application fees:

  • Custom label – $25 per label
  • Custom package – $10 per package
  • Exit packages – $10 per exit package

Please reference the Labeling and Packaging Guide and the TAP Package and Label Submission Guide available on our website for additional information.

If you have any questions or need more information, please feel free to contact a CCD Education Specialist at (406) 444-0596 or by email at DORCCDEducation@mt.gov.

Cannabis Control Division June Newsletter

Metrc day-end requirement

Reminder: After entering sales in real time, licensees must also remember to finalize those sales in Metrc at the end of each business day.

Packaging and Labeling

The Packaging and Labeling application is now available on the TransAction Portal (TAP).

To be compliant with the new packaging and labeling requirements, all licensees must submit their packaging and labeling applications to be reviewed by the Cannabis Control Division (CCD) by August 1, 2022.

A licensee that fails to submit applications for approval of packaging and labeling by August 1, 2022, shall be subject to disciplinary proceedings.

We strongly encourage licensees to reference the Labeling and Packaging Guide and the TAP Package and Label Submission Guide available on our website.

Learn more about Packaging and Labeling

Responding to deficiency letters

Reminder:

Reminder: deficiencies must be addressed individually on a Statement of Deficiencies Response form. The form is available at:

Documents and photographs are necessary to verify cured deficiencies. When attaching these documents, for clarity, please name or label them, such as “Violations 1”, “Violations 2”, etc.

The completed form with attachments must be submitted through our TransAction Portal’s Submit Requested Documents, available in the Quick Links section of the TransAction Portal.

Re-use of exit packages

Consumers may re-use exit packages at various dispensary locations.

Exit packages must be certified as child-resistant by a federally qualified third-party child resistant packaging test firm.

Additionally, the exit package must be opaque and must contain the warnings, verbatim, as required by 16-12-215, MCA.

Metadata retention requirements

Reminder: all metadata must be removed within 180 days of scanning it, per statute, §16-12-104(12), MCA:

(12) The department may not adopt rules requiring a consumer to provide a licensee with identifying information other than government-issued identification to determine the consumer’s age. A licensee that scans a person’s driver’s license using an electronic reader to determine the person’s age:

a. may only use data or metadata from the scan determine the person’s age

b. may not transfer or sell that data or metadata to another party

c. shall permanently delete any data or metadata from the scan within 180 days, unless otherwise provided for in this chapter or by the department.

Testing requirements

CCD advises providers to only utilize testing and labeling requirements information obtained directly from CCD regulations, education specialists, or inspectors.

Department of Revenue Rulemaking Actions for June 10, 2022

Adoption Notice

MAR 42-1048

MAR 42-1048adp – pertaining to marijuana and marijuana products packaging and labeling application and approval process.

Comments were received – no additional changes were made from the April 29, 2022 amended proposal notice.

Effective Date: June 11, 2022

Related Downloads:

Adoption Notice (PDF, 81.9 KB)

Department of Revenue Rulemaking Actions for May 27, 2022

Proposal Notice

MAR 42-1046

MAR 42-1046pro – pertaining to department procedures involving penalties against alcoholic beverages licenses.

Public Hearing
June 22, 2022
Comment Deadline
June 30, 2022
Related Downloads

Adoption Notices

MAR 42-1049

MAR 42-1049adp – pertaining to department processing and remittance of local-option marijuana excise tax collections to localities.

No public comments received; rule amended as proposed.

Effective Date
May 28, 2022
Related Downloads

MAR 42-1050

MAR 42-1050adp – pertaining to eliminated tax credits

No public comments received; rules amended or repealed as proposed.

Effective Date
May 28, 2022
Related Downloads

MAR 42-1051

MAR 42-1051adp – pertaining to licensed premises proximity requirements to places of worship or schools.

No public comments received; rule adopted as proposed.

Effective Date
May 28, 2022
Related Downloads

Cannabis Control Division May Newsletter

Product Testing Requirements

Licensees are responsible to know and comply with all product testing requirements.

If an inspector determines that a product being offered by a provider was not tested in accordance with Montana rule or statute, the provider is prohibited from selling the product until testing can be appropriately completed.

If testing cannot be completed, the product or packages must be destroyed and may be subject to recall.

Inspection Follow-up

After a facility inspection is completed, the provider will receive a Statement of Deficiencies from the Cannabis Control Division (CCD).

The provider is then required to respond to the deficiencies on a Deficiency Report Response Form within 10 days of receipt of the Statement of Deficiencies. The provider will submit the form via the TransAction Portal (TAP).

Providers may verify that the corrections have been made through photographic evidence in the written response.

If the corrections cannot be verified through photographic evidence, a follow-up inspection will be scheduled within 10 days of the deficiency report response being received by the Department.

Failure to respond to a Deficiency Report could subject a licensee to a Notice of Proposed Department Action.

Cultivator licensee tier increases & restrictions

The CCD has completed a system update that allows Cultivator licensees to increase their cultivation by multiple tiers, up to a maximum of Tier 5.

The update was completed after discussions with the Economic Affairs Interim Committee (EAIC) regarding §16-12-223 (1)(e)(iii), MCA.

Please note: this change only affects Cultivator licensees currently at Tier Micro through Tier 4; cultivators at Tier 5+ are unaffected and may apply to increase one tier at their time of renewal.

To update your existing licenses, please log into the TransAction Portal (TAP) and submit an Update application. Licensees may also apply to add new cultivation facilities at the same time – up to the maximum number allowable by the tier requested.

All tier increase requests will require inspection per statute. If approved, fees will be prorated based on the licensee’s current expiration date.

Sales to Expired Cardholders

Providers are prohibited from selling medical marijuana and medical marijuana products to registered cardholders that present an expired registration card.

Providers are required to check the cardholder’s registration card every time that a medical patient, or their designated purchaser(s), is purchasing medical marijuana and medical marijuana products.

The CCD will be auditing licensees in Metrc to ensure compliance and will hold licensees accountable to their sales.

Update on Packaging and Labeling Approval Process Rule

In response to public comment, the CCD has amended its proposed rule on the packing and labeling application and review process.

You can find a link to the amended proposed rule here.

The period for public comment has been extended to May 6, 2022.

No Free Product

Per MCA 16-12-207(7), a marijuana business may not provide free marijuana or marijuana products or offer samples of marijuana or marijuana products.

Department of Revenue Rulemaking Notifications for April 29, 2022

Amended Proposal Notice

MAR 42-1048amdpro – pertaining to marijuana and marijuana products packaging and labeling application and approval process

*Amendments are being made to the original proposal notice in response to testimony and comments received*

No additional public hearing will be held

Comment period has been extended until 5:00 p.m., May 6, 2022

New Functionality for Cannabis Cultivator Licensees

The Cannabis Control Division (CCD) has completed a system update that will allow Cultivator licensees to submit an update application to increase their cultivation by multiple tiers, up to a maximum of tier 5.

This update took place after discussions with the Economic Affairs Interim Committee (EAIC) regarding §16-12-223 (1)(e)(iii), MCA.

Please note: This change only affects Cultivator licensees currently at Tier Micro through Tier 4. Cultivators at Tier 5+ are unaffected and may apply for tier increase at their time of renewal.

Applications to update existing licenses are available by logging into the TransAction Portal (TAP) and submitting an Update Application.

Licensees may also apply to add new cultivation facilities at the same time, up to the maximum number allowable by the tier requested. All tier increase requests will require inspection per statute. If approved, fees will be prorated based on the licensee’s current expiration date.

Beginning 7/1/2023, all Cultivators will be restricted to increasing their tier by one tier at a time at the time of their regular renewal. Additional requirements can be found in statute at §16-12-223 (1)(e).

Gov. Gianforte Extends Montana Tax Return Deadline One Week

HELENA, Mont. – Due to severe weather in areas of Montana, Governor Greg Gianforte today announced a one-week extension of the 2021 Montana Individual Income Tax Return deadline to Monday, April 25, 2022.

“After hearing from Montanans impacted by the recent winter storms, particularly in eastern Montana, we moved quickly to extend the state filing deadline for those unable to get their tax returns in on time,” Gov. Gianforte said.

The one-week extension applies only to the 2021 Montana Individual Income Tax Return. The extension does not apply to federal returns, quarterly estimated payments, or other state tax types.

To request an extension on your federal return, please see the IRS’s Extension of Time to File Your Tax Return guide.

Department Rulemaking Notices for April 15, 2022

MAR 42-1049 Proposal Notice

MAR 42-1049 – pertaining to department processing and remittance of local-option marijuana excise tax collections to localities

Public Hearing
May 9, 2022
Comment Deadline
May 16, 2022
Proposal Notice
PDF, 85.8 KB

MAR 42-1050 Proposal Notice

MAR 42-1050 – pertaining to eliminated tax credits

Public Hearing
May 9, 2022
Comment Deadline
May 16, 2022
Proposal Notice
PDF, 82.7 KB

MAR 42-1051 Proposal Notice

MAR 42-1051 – pertaining to licensed premises proximity requirements to places of worship or schools

Public Hearing
May 9, 2022
Comment Deadline
May 16, 2022
Proposal Notice
PDF, 95 KB

Estimated Cannabis Sales for March 2022 Now Available

The Estimated Cannabis Sales Report for March 2022 is now available.

Estimated sales are based on the seed-to-sale tracking system and may not reflect the official sales reports made by licensees.