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Montana Cannabis Licensing Overview
The next adult-use cannabis business license application window will open on July 1, 2027, though an official closing date has not yet been announced. The application window for new cannabis business licenses was originally set to open on July 1, 2025, but it has since been pushed back to 2027. There is currently no limit on the number of cannabis licenses that will be authorized in Montana, and applications are being reviewed and issued on a rolling, first-come, first-served basis with no set end date for the application window.
Legislators are currently reviewing bills that could limit the number of new licenses issued, so it’s critical for prospective applicants to prepare early and monitor regulatory updates.
Montana’s cannabis industry has generated over $1 billion in total sales since adult-use legalization began in January 2021. With strong market demand and an evolving regulatory framework, the 2027 licensing round offers a valuable opportunity for entrepreneurs and established operators alike to enter or expand within the state.
License Types Available in Montana
The Montana Department of Revenue’s Cannabis Control Division (CCD) will begin accepting the following adult-use Montana cannabis license applications on July 1, 2027:
- Dispensary License
- Cultivator License
- Manufacturer License
Each license type supports a specific segment of the supply chain, allowing businesses to engage in retail, production, or distribution based on their strategic goals.
Montana also has the facilities operating using the following license types, however they are not currently open to new applicants:
- Transporter License
- Testing Laboratory License
- Combined-use License
General Cannabis Licensing Information
Cannabis businesses can be vertically integrated, meaning one company can hold a Montana cultivation license, manufacturing license, and retail license, and may operate multiple locations under each license type. Each location needs to be approved by the CCD before becoming operational.
The person managing day-to-day operations must be a Montana resident, and all applicants must show proof of at least one year of Montana residency.
Applications must be submitted through the TransAction Portal (TAP), and each application must include a compliant business address, proof of funding from legitimate sources, background checks for all owners with 5% or more control, and full organizational transparency.
A 20% non-refundable processing fee is required at submission, with the remaining 80% due upon approval. All locations must pass inspections and have the necessary zoning and fire/building permits before operations can begin.
The Department of Revenue reviews applications on a rolling basis.
Key Points About Montana Cannabis Licensing
- Vertical Integration: Permitted. One business may hold multiple license types and operate several locations.
- Montana Residency: Required for at least 1 year for all owners and controlling parties; day-to-day operators must reside in Montana.
- Location Approval: Required for each site; must be compliant with local zoning and approved by fire/building officials.
- Application Portal: All applications are submitted online via Montana’s TransAction Portal (TAP).
- Background Checks: Mandatory for all owners with at least 5% beneficial ownership.
- Disqualifying Factors: Felony or recent drug convictions, delinquent taxes, unpaid child support, recent license revocations, or being under 21 years old.
- Licensing Fees: 20% non-refundable processing fee due at submission; full payment required before license issuance.
- Inspections & Readiness: Premises must be ready for inspection at the time of application.
- Seed-to-Sale Tracking: Participation in Montana’s seed-to-sale system is mandatory.
- Onsite Consumption: Prohibited at all licensed locations.
- Source of Funds: Must be from a “suitable” source with no ties to illegal activity or risks to public trust.
- Statewide Zoning Requirement: An application will be denied if the proposed premises:
- Conflicts with local zoning ordinances on file with the department.
- Lacks local approvals from building, health, or fire officials.
- Is located within 500 feet (straight line) on the same street as:
- A place of worship
- A public or private school, including preschool or postsecondary schools
- A licensed or registered child-care facility
- This 500-foot restriction does not apply to license renewals if the nearby facility was established after the cannabis business began operating.
Local Government Authority
Before applying, confirm that your local jurisdiction allows the type of cannabis business you plan to operate. If the county you’re applying in previously opted out or voted against legalization in 2020, the county will need to opt in. To opt in, the county needs to hold a local election to approve that type of cannabis business license. All counties that voted for legalization in 2020 are automatically opted in if they have not since chose to opt out.
Keep in mind that…
- Local governments can still set rules like zoning restrictions or permit requirements.
- Local governments can later vote to opt out or ban any or all types of cannabis businesses after a 90-day notice.
- Some cities may hold their own votes, especially if they’re large or located in counties with mixed support.
- State tax rates are set at 4% for medical marijuana and 20% for adult-use sales. Counties may also impose a local-option tax of up to 3% on medical sales, Montana recreational weed sales, or both.
- Local governments can determine where cannabis businesses can operate (e.g., restricting proximity to schools, churches, or residential zones).
- Businesses must comply with local land use and planning regulations.
- Some jurisdictions may require an additional local business license or permit before cannabis operations can begin.
- Local ordinances may restrict operating hours for recreational dispensaries in Montana or other cannabis facilities.
- They can establish rules related to:
- Security requirements (e.g., surveillance, restricted access)
- Waste disposal
- Odor control
- Fire and building safety inspections
- Local governments can conduct inspections of cannabis facilities to ensure compliance with state and local rules.
Opt-in map
Montana Cannabis Licenses
Dispensary License
In Montana, the Dispensary License allows a business to sell cannabis for both recreational and medical use. Cannabis must be sold to adults 21 years of age or older, or medical card holders.
Operational Requirements
Recreational dispensaries in Montana must operate from a fixed brick-and-mortar location that complies with local zoning and building codes. Each location must:
- Be inspected and approved by the Cannabis Control Division before opening.
- Be zoned appropriately for cannabis retail use and have approvals from local fire and building officials.
- Be included in the seed-to-sale tracking system before any sales can occur.
Dispensaries are not permitted to allow on-site consumption.
Cultivator License
The Cultivator License allows a business to grow cannabis for sale to other licensed businesses or for transfer to a dispensary licensed under the same business. This license authorizes the growing of cannabis and other cultivation related activities for licensed adult-use or medical cannabis businesses. Cannabis must be cultivated at an approved indoor facility in compliance with Montana cannabis laws as well as state and local regulations.
Sale to consumers is not permitted under this license.
Operational Requirements
Cultivators must operate from a licensed, indoor facility approved by the Cannabis Control Division (CCD). Outdoor cultivation is not permitted for new applicants. Each cultivation site must:
- Be zoned appropriately and approved by local fire and building officials
- Be inspected and approved by CCD before operations begin
- Participate in the state's seed-to-sale tracking system
Cultivators may transfer cannabis to their own licensed dispensary or sell to other licensed businesses, but cannot sell directly to consumers.
Licensees may transport their own cannabis between licensed sites, provided all transport activities comply with state rules.
A cultivator alone cannot package or label cannabis for retail sale unless:
- They also hold a Manufacturer License, or
- Operate under a Combined-Use License that includes manufacturing privileges.
Tier upgrades (i.e., expanding canopy size) may be requested during the annual renewal process and must meet the compliance criteria in 16-12-223(1)(e), MCA
Manufacturer License
A Manufacturer License allows a business to produce marijuana concentrates, extracts, and infused products. This license also permits the packaging, repackaging, labeling, or relabeling of marijuana products. Manufacturers purchase cannabis from licensed cultivators and sell finished products to other licensed businesses. Manufacturers are not allowed to sell directly to consumers.
There are three tiers of the Manufacturer License:
All fees are annual and are based on the amount of concentrate produced monthly. Manufacturers who do not produce concentrate may use the lowest tier
Tiers are based on the monthly volume of concentrate produced. Businesses may apply for multiple manufacturing locations or request a tier increase at renewal.
Businesses that manufacture without producing concentrates (e.g., only package, infuse, or relabel) are issued a Tier 1 license
Operational Requirements
- Manufacturers can transport their own products between licensed facilities
- All products must be tested, labeled, and packaged in accordance with Montana’s rules before distribution.
- Be zoned appropriately and approved by local fire and building officials
- Be inspected and approved by CCD before operations begin
- Participate in the state's seed-to-sale tracking system
Transporter License
Licensing Fee: $10,000 for a two-year period.
Storage facility endorsement is $1,000 annually
Montana’s Transporter License allows a business to transport cannabis and cannabis products between licensed cannabis businesses, including testing laboratories. Transporters may also deliver to registered medical cardholders, but are not permitted to deliver to Montana recreational weed toadult-use consumers.
This license is designed for third-party transportation providers. Cannabis businesses with cultivation, manufacturing, or dispensary licenses may transport their own products without holding a separate transporter license.
General Information
Transporters must meet all General Licensee Requirements and these additional requirements:
- Transporter licenses are only required for third-party transport services
- Cannabis businesses may transport their own products between licensed locations without this license
- Dispensaries may deliver to medical cardholders without a transporter license
- All cannabis transportation must be logged using a transport manifest generated by the state’s seed-to-sale tracking system
- No business location is required, but without one, all cannabis must be delivered the same day—overnight storage is prohibited
- All employees must hold a valid Marijuana Worker Permit before starting work
Operational Requirements
Transporters must follow all delivery, tracking, and security rules, including:
- Carrying a valid transport manifest for every transfer
- Complying with vehicle storage, security, and routing protocols
- Avoiding any unauthorized stops, storage, or diversion of cannabis
Transporters that wish to store cannabis overnight must apply for a Storage Facility Endorsement, which allows for off-site, temporary storage of products.
Testing Laboratory License
Licensing Fee:
- $5,000 for a two-year period.
- Storage facility endorsement is $1,000 annually
A Testing Laboratory License in Montana allows a facility to analyze samples of cannabis and cannabis products to determine potency, cannabinoid profile, and the presence of contaminants such as pesticides, mold, heavy metals, or residual solvents.
All cannabis and cannabis products must be tested and pass state-mandated standards before they can be sold to medical cardholders or adult-use consumers through a dispensary.
General Information
In addition to the requirements listed here, testing laboratories must meet all General Licensee Requirements.
- All products must be tested prior to sale for both the medical and adult-use markets
- Montana cannabis testing license standards are the same for all product types, regardless of market
- Laboratories must employ a Scientific Director who meets education and experience requirements defined in statute
- Labs with a Montana cannabis testing license are overseen by the Cannabis Control Division (CCD)
- The CCD Testing Laboratory Program evaluates and endorses facilities, performs initial reviews, and conducts inspections
- CCD Licensing and Inspection issues the license, verifies business compliance, and collects fees
- All employees must have a valid Marijuana Worker Permit before beginning work
Operational Requirements
Testing laboratories must:
- Receive an endorsement from the CCD Testing Laboratory Program before applying for licensure
- Maintain facilities, equipment, and procedures in accordance with CCD rules
- Employ a qualified Scientific Director to oversee all testing operations
- Comply with seed-to-sale tracking system requirements for sample logging and data reporting
- Store cannabis and cannabis products securely and in accordance with state regulations Montana cannabis laws.
- Laboratories may apply for an optional Storage Facility Endorsement to maintain separate, off-site storage for temporary holding of marijuana or marijuana products.
- Testing labs must pass a facility inspection by CCD before operating
- The Scientific Director’s resume must be submitted with the application
- Labs must provide proof of insurance and a surety bond as part of their initial application
- The CCD Testing Laboratory Program outlines endorsement procedures and standards on its official website
Combined-Use Licenses
Licensing Fee: $7,500
The Combined-Use License is a special cannabis license in Montana designed exclusively for the state’s eight federally recognized tribes or entities that are majority-owned by a Montana tribe. This license includes both a Montana Cultivation License and a Dispensary License, allowing the holder to grow and sell cannabis under one unified license.
Unlike other cannabis licenses, combined-use licenses are not subject to the moratorium on new licenses and are currently available for application.
General Information
In addition to the requirements listed here, combined-use licensees must meet all General Licensee Requirements.
- A maximum of eight licenses may be issued under this category—one per federally recognized Montana tribe
- Each license consists of one cultivation operation and one dispensary
- Only tribes or businesses majority-owned by a Montana tribe are eligible
- Combined-use licensees are exempt from the current license moratorium affecting other applicants
- Applicants can apply now for this license category
- Cultivators under a combined-use license can increase canopy tiers faster than standard cultivators (can advance by more than one tier at a time, up to Tier 5, without showing production or market metrics)
Operational Requirements
Facilities under a combined-use license must:
- Be located in a county that permits cannabis businesses under 16-12-301, MCA
- Comply with all applicable local zoning, safety, and permitting rules
- Undergo inspections by the Cannabis Control Division prior to licensure and during operation
- Meet all the same regulatory requirements for cultivation, retail, and tracking as separate license types
- A tribe or its majority-owned business may only hold one combined-use license at a time
- All standard rules for seed-to-sale tracking, worker permits, testing, and taxes apply
- The license is subject to all general licensing fees and regulations outlined in Montana’s cannabis laws
Local Approval
If a tribe plans to operate in a county that voted against Initiative 190 in 2020, the county must have opted in to allow cannabis businesses. All facilities must comply with local jurisdictional rules and approvals.
Fees: Cannabis licenses in Montana have an application and licensing fee that varies based on the license being applied for and the number of locations being applied for.
1. Two-Part Payment Structure
All license applications in Montana require payment in two stages:
- Processing Fee (20%): This is due at the time of application submission through the TransAction Portal (TAP). Non-refundable, even if your application is denied.
- Final License Fee (Remaining 80%): If your application is approved, you must pay the remaining 80% of the total license fee before the license can be issued.
Example
If you apply for a Dispensary License:
- Total Fee: $5,000
- Processing Fee (20%) due at submission: $1,000
- Remaining Fee (80%) due upon approval: $4,000
Additional Fee Rules
- Each license type and each location requires its own application and fees
- Licenses are typically valid for one year, except Transporter Licenses (2 years)
- Renewals also require full payment before the expiration date
- Tier-based licenses (like Cultivator or Manufacturer) have increasing fees depending on canopy size or production volume
How to Apply for a Montana Cannabis License:
The following information applies to all Montana cannabis license types in Montana. Whether you’re applying for a dispensary, cultivation, manufacturing, transporter, or testing lab license, the application process follows the same general structure.
Step-by-Step Overview
1. Submit Your Application Online
All cannabis license applications must be submitted through the TransAction Portal (TAP).
2. Understand License Structure
- Businesses may apply for any combination of license types.
- Licenses are valid for one year and must be renewed annually.
- Each license type (e.g., cultivator or dispensary) is issued once per business, but you may operate multiple sites, as long as each is approved individually.
3. Prepare All Required Documents
To avoid denial and the loss of your non-refundable 20% processing fee, you need to gather the following documents before applying.
Required Documents for All License Applications:
- Documentation of Montana Residency
- Documentation of Date of Birth
- Consent to Fingerprint
- Property Ownership or Owner Permission
- Business Organization Chart
- Business Structure Form
- Source of Funding Verification
- Building Inspection Report
- Fire Inspection Report
- City and County Approval
4. Pay the Required Fees
- A non-refundable processing fee (20%) is required at submission
- The remaining 80% must be paid before license approval
- Renewal applications open 75 days before expiration and must be submitted 60 days before expiration
5. Ensure Employee Compliance
All employees must obtain a Marijuana Worker Permit before beginning any work.
- Each application is reviewed individually, and no extensions are granted for incomplete or late renewals.
- Cannabis cannot be sold, transferred, or stored at unlicensed or unapproved locations.
- The Montana Department of Revenue cannot provide legal or tax advice. Please consult a qualified professional if needed.
Standard Operating Procedures (SOPs)
Licensees must develop and maintain written SOPs tailored to their specific license type. These SOPs should be readily available at each licensed premises and are subject to inspection by the Montana Department of Revenue. SOPs are explicitly required for Cultivator and Manufacturer Licenses, but all licensees must meet detailed compliance standards that inspectors verify through a comprehensive checklist.
Required SOPs required to be complete and held on-site before the initial and preceding inspections include:
General
- Emergency procedures to be followed in case of a fire, chemical spill, or other emergency.
- Binder containing proof that any signage at the licensed premises complies with local jurisdiction sign ordinances and regulations.
- Proof that licensees and employees of licensees are currently on the required training.
- Security Plan
- Recall Plan - for identifying and isolating products to prevent or minimize its distribution to customers, retrieve and destroy product, establish a communications plan to notify those affected by the recall (the use of a press release and other appropriate notifications to ensure customers are notified of the recall and affected product information)
Cultivators:
- SOPs covering how to produce marijuana containing at a minimum:
- Application of pesticides and chemicals
- Water usage and wastewater disposal
- Waste disposal plans
Manufacturers:
- Production processes for each product type
- Cleaning protocols for equipment and surfaces
- Handling and storage of solvents and chemicals
- Waste disposal procedures
- Employee training on equipment and safety
Dispensaries:
SOPs for the destruction of returned marijuana or marijuana products.
A marijuana dispensary licensee that offers retail deli-style sales must maintain and make available for inspection a SOP detailing sterile handling techniques to handle marijuana flower.
Why Choose CannDelta?
By choosing CannDelta, you’re partnering with a trusted leader in cannabis consulting services in Montana. Our team brings deep knowledge of Montana’s cannabis regulations and years of experience supporting businesses across North America. Whether you’re applying for a license or scaling operations, we provide the strategic support you need to succeed in this growing market. From cannabis compliance in Montana to brand strategy, we have every angle covered.
Cannabis License Applications
Our cannabis consulting services in Montana include hands-on guidance for submitting strong, compliant applications. We help you understand the process, meet every requirement, and stay ahead in a competitive space.
Security Plan
Our consultants create detailed, state-compliant security plans that protect your facility, your staff, and your inventory while aligning with cannabis compliance in Montana.
Business Plan Development
Lay the groundwork for long-term success with a comprehensive business plan. We tailor each plan to Montana’s licensing framework and your specific market goals.
Standard Operating Procedures
We draft SOPs that ensure operational efficiency and full alignment with state regulations. This is a vital part of maintaining cannabis compliance in Montana.
Marketing Plan
As a top cannabis marketing agency in Montana, we help businesses develop strong brand identities and build outreach strategies that resonate with local consumers.
Site Audits and Inspections
We conduct full-site audits to assess readiness and ensure your operation is prepared for inspection. Our insights help identify gaps and resolve issues before they become problems.
Employee Staffing and Training Plan
We support your team-building efforts with recruitment strategies and training programs that prepare your staff for success in Montana’s cannabis market.
Whether you’re launching or expanding, trust CannDelta as your cannabis marketing agency in Montana and your go-to provider of cannabis consulting services in Montana.
Frequently Asked Questions
Is it Legal to Grow Weed in Montana?
Yes, it is legal to grow cannabis in Montana with the appropriate license. Adults aged 21 and older are also allowed to grow up to two mature plants and two seedlings for personal use at home, provided they follow state regulations and grow in a private, secure location. Commercial cultivation requires a state-issued cannabis cultivator license, which is regulated by the Montana Department of Revenue’s Cannabis Control Division.
Is Weed Legal in Montana?
Yes, both medical and recreational cannabis are legal in Montana. Medical cannabis has been legal since 2004, and adult-use cannabis was legalized by voter initiative in 2020. Retail sales of adult-use cannabis began on January 1, 2022.
Is Marijuana Recreational in Montana?
Yes, marijuana is legal for recreational use in Montana. Adults aged 21 and older can legally possess, purchase, and consume cannabis from licensed dispensaries. Recreational use is regulated by the Montana Department of Revenue, and local governments may impose additional restrictions.
How Many Cannabis Licenses are in Montana?
As of early 2025, there are several hundred active cannabis licenses in Montana, including dispensary, cultivator, manufacturer, transporter, testing laboratory, and combined-use licenses. The exact number may fluctuate due to new issuances, renewals, and expirations. The Cannabis Control Division maintains a public list of active licensees on its website.
How Do I Get a Cannabis License in Montana?
To get a cannabis license in Montana, applicants must submit their application through the TransAction Portal (TAP), the state’s official online system. They must meet eligibility requirements, provide proof of Montana residency, secure a compliant location, submit inspection reports, and pay a two-part license fee. Applications are reviewed by the Cannabis Control Division, and the business must pass a final inspection before beginning operations.
How Do I Start a Cannabis Business in Montana?
To start a cannabis business in Montana, you need to determine your license type, secure a compliant facility, meet state and local zoning rules, and prepare all required documentation, including proof of funding and residency. You will apply through the TransAction Portal and undergo a facility inspection before receiving your license. You may also need local approval depending on your county or municipality.
How Much Does a Cannabis License Cost in Montana?
Cannabis license fees in Montana vary by license type and tier. For example, a dispensary license costs $5,000 per location, while cultivator licenses range from $1,000 for micro-tiers up to $37,000 for Tier 12. Manufacturers are also charged by production tier, and all applications require a non-refundable processing fee equal to 20 percent of the total license cost at the time of submission. The remaining 80 percent is due upon approval.
