JEFFERSON CITY, Mo. (News First) – There’s some good news for those who purchase marijuana in Missouri. A panel of judges ruled this week that cities and counties can not stack marijuana sales taxes. A lower court’s decision was reversed by the Missouri Court of Appeals Eastern District. Several counties and cities currently have these stacked taxes in place, imposing 3-percent taxes on cannabis purchases. This means marijuana purchasers, in some areas, have been paying a sales tax of over 20 percent. A judge wrote that the plain language is unambiguous and only one local government is authorized to impose an additional 3-percent sales tax.
The judges agree that voters in 2022, who approved marijuana to be sold in the state, that a county could only impose a sales tax if a dispensary is located in unincorporated areas, whereas in incorporated areas with dispensaries inside city limits, the tax could be imposed and paid to said city, town or village but not the county. State data shows 114 counties enacted a 3-percent marijuana tax. Of that number, 74 municipalities have stacked their taxes with another three percent tax. It’s estimated marijuana consumers in Missouri have been overtaxed by about $3 million. Counties and municipalities are now reviewing the ruling and determining their next steps.
