The Missouri Supreme Court 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 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 Dispensaries 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.
Here’s a statement from MoCannTrade Executive Director Andrew Mullins on today’s historic ruling:
“Only days after dozens of Missouri counties began unconstitutionally charging adult use customers an extra 3% sales tax in Oct. 2023, MoCannTrade and our industry partners went to court to protect the very customers that make Missouri’s marijuana program the envy of other states. Today’s Missouri Supreme Court ruling will directly save Missouri cannabis customers an estimated $3 million every single month.
Missouri customers already pay their fair share, with sales tax revenue from cannabis in Missouri now tripling original state estimates.
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.
We applaud the Court for upholding the constitution and call on all jurisdictions and the Missouri Department of Revenue to implement this decision without delay so Missouri can keep leading the way.”
It goes without saying, but without your continued support for MoCann and our industry, we would not be able to fight with one voice on behalf of Missouri patients and customers. Thank you for continuing to make Missouri one of the best cannabis programs in the nation!
In Your Service
Executive Director – Andrew Mullins
Associate Director – Melissa Khan
Board Chair – Dena Ladd
