SAINT LOUIS, Mo. – Missouri’s Eastern District Court of Appeals today ruled that Missouri counties are prohibited from stacking an extra 3% sales tax on the sale of adult use marijuana in incorporated areas. Since Oct. 1, 2023 dozens of Missouri counties began stacking this unconstitutional tax on top of the legal municipal tax, costing Missouri marijuana customers roughly an additional $3 million each month.
The lawsuit to stop this unconstitutional tax stacking was brought only days after it began and was supported by Missouri cannabis industry on behalf of their customers, with Robust Missouri | Feel State Dispensary being the plaintiff in the case.
Under Article 14 of the Missouri Constitution, only municipalities can charge a 3% tax on the sale of adult use cannabis in their city limits, whereas counties are allowed to add the 3% tax on sales in unincorporated areas. This singular local government tax is on top of both the 6% adult use sales tax levied by the state and the usual state and local sales tax that would go on any other retail product.
“Missouri is one of the leaders in the entire country at bringing marijuana customers out of the shadows of the illicit market and into the regulated market by providing great customer service and selling high-quality, safe and tested cannabis products, without overly burdensome taxes,” said Andrew Mullins, MoCannTrade Executive Director. “Today’s ruling helps put $3 million back into the pockets of Missouri customers each month and will allow the industry to continue to contribute hundreds of millions each year in sales tax revenue to the state and our local communities.”
According to news reports, even without the unconstitutional tax stacking, Missouri cannabis sales are generating roughly $230 million annually in sales tax revenue for state and local government.
