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.”