Missouri Supreme Court Rules Against County Tax on Marijuana Sales
In a major victory for the state’s cannabis industry, the Missouri Supreme Court has struck down a 3% tax levied by counties on marijuana products sold at dispensaries in incorporated areas. The ruling, which was issued on Tuesday, is a significant blow to counties that had been collecting the tax since the legalization of marijuana for adult use in 2022.
The controversy began when Florissant-based Robust Missouri Dispensary sued the state, arguing that counties were engaging in an unconstitutional “cash grab” by imposing the tax on top of the 4% state sales tax. A St. Louis County judge initially ruled in favor of the counties, allowing them to collect the tax on sales in incorporated areas. However, the Missouri Supreme Court has now overturned that decision, finding that the counties only have the authority to impose the tax on sales in unincorporated areas.
The court’s decision is a major win for the cannabis industry, which had argued that the tax was unfair and would drive up prices for consumers. According to Andrew Mullins of MoCannTrade, the state’s cannabis industry association, the ruling could save consumers millions of dollars a month.
The decision is also a setback for counties that had been relying on the tax revenue. St. Louis County Executive Sam Page expressed disappointment with the ruling, estimating that the county could lose up to $3 million a month in revenue. St. Charles County Executive Steve Ehlmann also expressed disappointment, but acknowledged that the county would respect the court’s decision.
The ruling highlights the complexities of Missouri’s cannabis laws, which were amended in 2022 to allow for the sale of marijuana for adult use. The law also allowed counties to impose a 3% tax on marijuana sales, but the Supreme Court’s decision has now clarified that counties can only impose the tax on sales in unincorporated areas.
The decision is a significant development in the ongoing debate over cannabis taxation and regulation in Missouri. As the state’s cannabis industry continues to grow, the ruling is likely to have far-reaching implications for consumers, businesses, and local governments alike.
