Missouri Supreme Court Rules Counties Cannot ‘Stack’ Cannabis Sales Taxes 

The Missouri Supreme Court on Tuesday ruled that counties cannot stack an
extra 3% tax on adult-use cannabis sales in incorporated areas, KOMU
reports. In a 6-1 ruling, the court determined that only one local
government can impose a 3% tax on cannabis sales, defining villages, towns,
cities, and counties as forms of local government.

The ruling means that counties may impose a 3% tax on cannabis sales in
unincorporated areas, but villages, towns, or cities that already impose a
3% tax may not. Cannabis sales already carry a 6% excise tax that is
imposed by the state, along with state and local sales taxes that apply to
other retail products.

In a statement, the Missouri Cannabis Trade Association (MoCannTrade) said
that the ruling could collectively save cannabis customers in Missouri $3
million monthly. MoCannTrade Executive Director Andrew Mullins noted that
“dozens of Missouri Counties” began “unconstitutionally” charging the extra
tax in October 2023. The lawsuit was brought by Robust Missouri Dispensary
3, which operates a 75,000-square-foot facility in Cuba and a dispensary in
Florissant.

“MoCannTrade and our industry partners went to court to protect the very
customers that make Missouri’s marijuana program the envy of other states.”
— Mullins in a statement

According to Missouri Department of Revenue data, the additional 3% tax
imposed by cities and towns affected more than 70 areas in the state.

“Missouri customers already pay their fair share, with sales tax revenue
from cannabis in Missouri now tripling original state estimates,” Mullins
told the Missouri Independent. “The ruling’s clarity preserves Missouri’s
standing as one of the nation’s most impactful and accessible cannabis
programs, ensuring patients and adult-use consumers continue to benefit
from fair pricing, great service and robust product choice.”