Billings Cannabis Banking

In the dynamic and developed cannabis market of Billings, Montana, Herring Bank stands out for its commitment to cannabis banking and financial services, offering a comprehensive suite of business and banking solutions tailored to the cannabis industry. This commitment includes a thorough application process designed specifically for new clients in the cannabis sector, ensuring they receive the support and services tailored to their unique needs.

Leveraging its deep understanding of the complexities inherent in Montana’s cannabis sector, Herring Bank is ideally positioned to guide and support cannabis related businesses as they navigate the challenges and opportunities of this growing industry. As a trusted financial partner in the legal cannabis market, the bank plays a pivotal role in helping businesses thrive in a constantly evolving regulatory environment.

Herring Bank provides invaluable educational resources and advisory services to assist cannabis businesses in adhering to the ever-changing federal and state regulations. This proactive approach not only helps ensure legal compliance but also positions cannabis enterprises for sustained growth and success in a highly competitive market. With a commitment to excellence and innovation in banking practices, Herring Bank emerges as an essential partner for any cannabis business looking to prosper in today’s economy, particularly within the vibrant context of Billings, Montana. This partnership underscores Herring Bank’s dedication to fostering a safe, responsible, and economically beneficial cannabis market.

Billings has one of the most distinctive cannabis setups in Montana: the state’s largest city sits in its largest cannabis county by sales, yet adult-use dispensaries are banned inside city limits. That split shapes where Billings-area businesses operate, what they can sell, and how they handle cash and banking.

Cannabis Rules Inside Billings City Limits

On November 2, 2021, Billings voters chose to permanently prohibit adult-use dispensaries within the city. Under the city’s marijuana business license rules (Ordinances 21-5785 and 21-5784, adopted November 2021):

• The only business types allowed in city limits are medical marijuana dispensaries, cultivators, transporters, manufacturers and testing laboratories.
• The city allows a maximum of eight medical marijuana dispensaries, awarded by lottery when eligible applicants exceed the cap.
• Licensed medical dispensaries in the city may not sell adult-use marijuana.
• City marijuana business licenses may not be transferred or sold.

Applicants for a medical dispensary lottery pay a non-refundable $350 application fee. Adult-use dispensaries serving Billings customers operate elsewhere in Yellowstone County, outside city limits.

Yellowstone County Taxes and Market

Yellowstone County levies Montana’s maximum 3% local-option marijuana tax, effective January 31, 2022, on top of the state’s 20% adult-use and 4% medical taxes, according to the Montana Department of Revenue. Yellowstone County is Montana’s largest county cannabis market: in July 2026, county dispensaries reported about $4.76 million in sales, including $4.28 million adult-use and $0.48 million medical, per the department’s county sales report.

Montana Rules in Condensed Form

The Department of Revenue’s Cannabis Control Division regulates the industry under House Bill 701 (2021), with adult-use sales since January 1, 2022. SB 27 extended the moratorium on new dispensary, manufacturer and cultivator licenses until June 30, 2027, and since July 1, 2025 dispensaries in counties that approved adult use may sell both medical and adult-use products, a change that does not override the city’s own ban. SB 74 now bases state marijuana tax on the retail price after discounts and, effective October 1, 2025, treats holders of private loans or convertible securities as having a financial interest in a licensee and requires disclosure of third-party relationships. Since July 1, 2026, ingestible products are capped at 100 mg of delta-9 THC per package and 5 mg per serving, HB 49 strengthened the ban on synthetic cannabinoids, and SB 375 bars consumer sales of hemp products containing delta-9 THC unless FDA-authorized. See our Montana cannabis banking page for more.

Federal Changes for Billings Cannabis Businesses

Federal rescheduling matters more in Billings than almost anywhere in Montana, because in-city dispensaries are medical-only. Effective April 28, 2026, marijuana subject to a qualifying state medical license moved to Schedule III, so medical activity is expected to fall outside Section 280E going forward, while adult-use sales elsewhere in the county remain Schedule I. Montana Sen. Steve Daines cosponsors the SAFE Banking Act of 2026, which remains in committee, so banks still follow FinCEN’s guidance for marijuana-related businesses.

What This Means for Banking a Cannabis Business in Billings

Herring Bank works with Billings medical dispensaries, cultivators, manufacturers, transporters and testing labs, as well as adult-use dispensaries elsewhere in Yellowstone County, to open compliant business accounts, document city and CCD licensing for BSA/AML review, connect you with our preferred armored courier for cash pickup and delivery, and run payroll, ACH, wires and electronic tax payments. Call 877-873-0079 or request a call back to talk about Billings cannabis banking.