Since Missourians legalized recreational marijuana a year-and-a-half ago , discussions about how local municipalities may implement sales taxes have been rampant.
Last week, a St. Louis judge ruled that local municipalities can stack recreational marijuana sales taxes, meaning consumers could be forced to pay additional taxes set by both city and county governments.
The constitutional amendment that Missourians approved in November 2022 includes a 6% statewide sales tax on all recreational, adult-use marijuana and marijuana products. The amendment also authorities local municipalities to implement a sales tax of their own up to 3%. Whether city and county governments can stack taxes on top of each other has been the subject of much debate since then and the St. Louis ruling — which is not binding statewide and set for appeal — is unlikely to be the final word on the matter.
In the decision last week, St. Louis Judge Brian May ruled consumers purchasing from recreational marijuana dispensaries that fall in both St. Louis and St. Louis County will see a sales tax of at least 12% (6% statewide, 3% city and 3% county).
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The St. Louis lawsuit was filed by Robust Missouri 3 LLC, which claimed that it's dispensary in Florissant experienced a tax rate of 14.988% after St. Louis and St. Louis County approved 3% sales taxes in April 2023, per Missouri Independent reporting. Robust claimed the combined sales taxes were too high.
Following Judge May's ruling, Robust submitted an appeal.
A similar lawsuit is ongoing in Buchanan County, which is located just outside of Kansas City, with St. Joseph as its county seat. St. Joseph dispensary Vertical Enterprises filed this lawsuit, claiming that the business would be “irreparably harmed” if sales taxes per stacked, per Missouri Independent reporting.
A hearing for this lawsuit is scheduled for May 16 in the Circuit Court of Buchanan County.
How does this effect Springfield and Greene County?
In August 2023, Springfield voters approved a 3% sales tax on recreational marijuana and marijuana products.
Under Judge May's ruling, both the city of Springfield and Greene County would be able to implement 3% sales taxes, which would be stackable. However, the county has not implemented such legislation.
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When asked the county's position on the matter, Greene County Presiding Commissioner Bob Dixon said the county "will be interested to see where those possible appeals go."
What do marijuana industry experts think?
Many marijuana industry leaders are not happy with the St. Louis ruling, calling the effort to tax marijuana at a high rate as an "unconstitutional money grab," per Missouri Independent reporting.
“We know from other states that when legal marijuana is taxed unnecessarily high, it only helps the illicit market, which deprives Missouri veterans and substance abuse programs of needed revenue,” Andrew Mullins, executive director Missouri Cannabis Trade Association, told the Missouri Independent a statement.
Greta Cross is the trending topics reporter for the Springfield News-Leader. Follow her on X and Instagram @gretacrossphoto. Story idea? Email her at gcross@gannett.com .
This article originally appeared on Springfield News-Leader: Despite St. Louis ruling, Greene County holds off on potential marijuana sales tax
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