Cannabis Legalization and Regulation in Montana
Montana legalized adult-use cannabis in November 2020 through Initiative 190, with retail sales beginning in January 2022. Adults 21 and older may legally possess up to 1 ounce of cannabis flower or 8 grams of concentrates. Home cultivation is also permitted, with each adult allowed to grow up to two mature plants and two seedlings, capped at four mature plants per household. Public consumption is prohibited, and impaired driving remains illegal.
The Montana Cannabis Control Division, under the Department of Revenue, regulates adult-use and medical cannabis programs. The division oversees licensing for cultivators, manufacturers, dispensaries, and testing laboratories. Local governments have authority to opt in or out of adult-use cannabis sales, creating variation in access across counties.
Montana’s medical cannabis program, in place since 2004, continues to operate alongside adult-use. Registered patients may purchase larger amounts than recreational users and benefit from lower tax rates. Patients may also designate caregivers and cultivate more plants at home with physician approval.
Hemp cultivation and hemp-derived CBD products are legal in Montana if they contain no more than 0.3% THC. Intoxicating hemp-derived cannabinoids, including delta-8 THC, are regulated as cannabis when sold for consumption and must comply with state licensing, testing, and packaging requirements.
For cannabis operators, Montana represents a stable but competitive market with both adult-use and medical sales. Financial service providers require licensing verification, tax IDs, ownership disclosures, operating agreements, and financial records. Because sales remain heavily cash-based, businesses must adopt secure armored transport, reconciled deposits, AML/BSA monitoring, and audit-ready accounting. Cannabis excise tax and sales tax compliance are critical to maintaining reliable banking relationships.
The Montana Cannabis Control Division regulates the state’s cannabis industry. For official program information, licensing resources, and compliance updates, visit:
https://mtrevenue.gov/cannabis
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