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MARIJUANA MOMENT

MISSOURI COUNTIES AND CITIES CAN STACK MARIJUANA TAXES ON TOP OF ONE ANOTHER,
JUDGE RULES


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POLITICS


MISSOURI COUNTIES AND CITIES CAN STACK MARIJUANA TAXES ON TOP OF ONE ANOTHER,
JUDGE RULES

Published

6 seconds ago

on

May 4, 2024

By

Marijuana Moment

“We know from other states that when legal marijuana is taxed unnecessarily
high, it only helps the illicit market.”

By Rebecca Rivas, Missouri Independent

A judge in St. Louis ruled Thursday that local municipalities can stack sales
taxes on marijuana dispensaries, the first court ruling on a much-debated issue
playing out around the state.

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The lawsuit was filed by Robust Missouri 3 LLC. The company saw its Florissant
dispensary’s tax rate on cannabis products rise to 14.988 percent after both the
city and St. Louis County approved 3 percent sales taxes on adult-use marijuana
in April 2023.

The constitutional amendment that legalized recreational cannabis sales included
a 6 percent statewide excise tax—but it also authorized “any local government”
to charge a sales tax of up to 3 percent.



At the heart of Robust’s lawsuit is whether the law intended for local
governments to be able to impose a maximum of 3 percent sales combined, or if
they can each impose a 3 percent sales tax.

St. Louis County Circuit Judge Brian May ruled that both governments’ taxes are
valid.

In his Thursday order, May stated there is no court precedent on this issue, so
he interpreted the intent of the law “as a whole and not in isolated parts.”

While the law allows for recreational marijuana to be legal, he stated it also
intended for local governments to be able to “protect public health.”



“If [Robust’s] interpretation were accepted, then a municipality or city would
essentially be given carte blanche to ignore any county ordinance or regulation,
including those related to public health and safety wholly unrelated to the
taxing issue,” May wrote in the ruling.

May pointed to the provision that allows the city to approve placing a
dispensary within less than 1,000 feet of any then-existing school.

“…and the county, and other cities in the Ferguson-Florissant School District,
would have no say in that decision,” May wrote. “This absurd outcome would
directly contradict the stated purpose of the [amendment].”

The ruling is a win for the Missouri Association of Counties, said Steve Hobbs,
the association’s executive director. The association has strongly advocated
that counties have the ability to do this, he said.



“The bulk of the counties around the state had gone to the voters and asked them
to implement this tax,” Hobbs told The Independent on Friday. “And I think every
one of them approved of it. I think [the ruling] removes some uncertainty from
those counties.”

On the other side, leaders of the marijuana industry have called the effort to
collect both taxes an “unconstitutional money grab” that violates the terms of
the amendment.

“We know from other states that when legal marijuana is taxed unnecessarily
high, it only helps the illicit market,” said Andrew Mullins, executive director
Missouri Cannabis Trade Association, in a statement to The Independent Friday,
“which deprives Missouri veterans and substance abuse programs of needed
revenue.”



Robust Missouri has submitted an appeal on the circuit court’s decision. Another
similar case is pending in Buchanan County.

St. Joseph dispensary Vertical Enterprises sued Buchanan County Collector Peggy
Campbell, arguing that it, too, would be “irreparably harmed” if both taxes were
imposed.

A hearing is scheduled in that case for May 16 in the Circuit Court of Buchanan
County.

This story was first published by Missouri Independent.

> Marijuana Legalization Opponents Raise Money For Potential Lawsuit Against
> Federal Rescheduling Move





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