Judge Nixes Montana’s Cumulative Cannabis Dispensary Fees – Green Market Report

A Montana judge struck down a state law imposing higher fees on cannabis dispensaries, ruling in favor of a group of dispensary owners who argued that the increased costs threatened their businesses.

Lewis and Clark County District Court Judge Mike Menahan issued the order last week, effectively halting the enforcement and collection of the new fee structure passed by the state legislature, according to the Daily Montanan.

The ruling is a significant blow to the state’s efforts to raise regulatory revenue from the industry.

Under the law, dispensaries faced a cumulative fee increase for each additional location they operated. The second location would incur a $10,000 fee, a third $15,000, and so on. That marked a departure from the previous flat fee of $5,000 per dispensary, regardless of the number of locations owned.

Granite Peak Holdings, TSB Montana, and MariMint, all Montana-based cannabis businesses, argued that the heightened costs were not just burdensome but also illegal, as they exceeded what was necessary for the state’s regulation of the industry. They added that such high fees could lead to the closure of multiple dispensary locations and layoffs.

The state defended the fee increase, arguing that the vast expanse of Montana necessitated more

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