Every budget season, one comment inevitably appears on social media: “Why can’t the County pay for this with marijuana taxes?” It’s a fair question. Cannabis is taxed at a high rate in Montana, and voters in Flathead County approved a 3% local-option tax on recreational sales. But the reality is this revenue, while appreciated, is not the windfall some imagine.
How the Money Breaks Down
Here’s what Flathead County has actually received:
- FY 2023: $27,666
- FY 2024: $347,735
- FY 2025: $408,689
Those numbers may look large at first glance, but there are important caveats:
- Of the 3% local tax, 5% stays with the State of Montana.
- The remainder is split between the County and our three incorporated cities. Flathead County keeps 50%, while the other half is divided among Kalispell (66.75%), Whitefish (20.47%), and Columbia Falls (12.78%).
- The County does not receive a share of the separate statewide cannabis tax.
That means the County’s actual portion is significantly smaller than the total sales figures suggest.
What That Actually Looks Like and Why It Doesn’t Stretch Far
Let’s look at FY 2025 at just over $408,000.
- The 5% cut going to the State of Montana is about $20,400.
- With the remaining $387,000, the 50% going to Flathead County is about $193,000.
Less than $200k in cannabis tax revenue is modest compared to the costs of essential services and infrastructure.
Where It Goes: Keeping Our Community Safe
So, what do we use these dollars for? In Flathead County, our share of cannabis tax revenue helps fund contracted security services through Talos LLC, a private security company.
Talos provides vital support at large community events like the Northwest Montana Fair, as well as ongoing security at public facilities including the Motor Vehicle Division, Courts and the Health Services building. Their presence ensures public spaces remain safe and welcoming while reducing the extra burden on the Kalispell Police Department and the Flathead County Sheriff’s Office.
This is a direct investment in community safety. Every patrol shift or courthouse detail covered by Talos means our law enforcement officers can stay focused on priority calls, investigations, and emergency response.
You can check out all of our Monthly Talos Security Reports at the bottom of the page at https://flatheadcounty.gov/department-directory/commissioners-office/public_information_office!
A Piece of the Puzzle
Cannabis tax revenue isn’t a windfall—it’s one piece of a much larger financial puzzle. But when used strategically, it can make a measurable difference. In Flathead County, these dollars are helping us maintain safe public spaces, protect community events, and relieve pressure on our law enforcement officers.
It may not be a “solve-all” fund, but it is a tool we are putting to work every day to keep our community safe.