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Home Hot Topic Judge strikes down Montana’s escalator-style cannabis licensing law

Judge strikes down Montana’s escalator-style cannabis licensing law

by Celia

A Montana judge has intervened to limit state regulators from imposing escalating fees on adult-use cannabis operators based on the number of stores they own. The decision effectively overturns a crucial aspect of House Bill 903, which mandated entrepreneurs with multiple retail licenses to pay higher fees, as reported by the Independent Record.

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The law, signed into effect by Republican Governor Greg Gianforte in May, introduced an initial licensing fee of $5,000, with each subsequent permit incurring an additional $5,000. This meant that a second location would cost $10,000, a third $15,000, and so forth. In some cases, this fee structure could lead marijuana retailers to pay more than $250,000 annually.

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The order, issued on January 5 by Helena Judge Mike Menahan, follows a lawsuit filed by state-licensed marijuana retailers Granite Peak Holdings, MaraMint, and TSB Montana, as reported by the Independent Record.

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Judge Menahan’s ruling stated that the original fee structure “generated sufficient fees” to cover the operational costs of the state’s Department of Revenue for overseeing the Montana Marijuana Regulation and Taxation Act. Additionally, Menahan directed that any fees collected under the new law should be refunded to the operators.

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