MoCannTrade Initiates Lawsuit Over Double Taxing

Missouri Net reports

A marijuana trade group is suing St. Louis County and the state of Missouri over the county levying sales taxes on cannabis sales.

Amendment 3, which passed nearly a year ago, allows local governments to levy a 3% local sales tax on marijuana sales on top of the state sales tax.

Jack Cardetti with MoCannTrade told Missourinet that county governments are stacking extra sales taxes on top of cannabis customers who buy within city limits.

“They’re trying to tax all of the sales that come into the counties, not just sales in unincorporated areas,” Cardetti said. “Double taxation – a 3% (county) tax on top of the 3% (municipal) tax. That was never envisioned when Missourians voted for it. It’s an either-or, not a both.”

When asked if the counties that are including cities and towns in their tax collections are misreading the law, Cardetti disagreed.

“The counties know what they’re doing here,” he said. “Several of the counties, including St. Louis County, originally were going to pass ordinances that were absolutely in line with the Constitution. They could tax those sales that are happening in unincorporated areas. Unfortunately, when you have politicians get involved and you have money, you see a lot of money grabs, and that’s exactly what the counties are doing in this situation.”

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