KANSAS CITY, Mo. — The Missouri Supreme Court ruled Wednesday that counties in the state can't charge an extra 3% sales tax on adult marijuana sales in incorporated areas.
The 6-1 decision means only municipalities can charge a 3% sales tax within city limits. Counties can add the 3% tax in unincorporated areas.
“Only days after dozens of Missouri counties began unconstitutionally charging adult use customers an extra 3% sales tax in Oct. 2023, MoCannTrade and our industry partners went to court to protect the very customers that make Missouri’s marijuana program the envy of other states," MoCannTrade Executive Director Andrew Mullins said in a statement. "Today’s Missouri Supreme Court ruling will directly save Missouri cannabis customers an estimated $3 million every single month."
Mullins said he believes Missouri customers pay their fair share, and sales tax revenue from cannabis is tripling original state estimates.
Jackson County Executive Frank White Jr. also released a statement Tuesday, expressing his disappointment with the court's ruling.
“We are disappointed by today’s Missouri Supreme Court ruling, which blocks counties from collecting the modest, voter-approved local fee on adult-use cannabis sales in incorporated areas," White said in the statement. "While we respect the role of the Court, this outcome reflects a broader failure — a failure by the Missouri General Assembly to ensure that the question placed before voters in 2022 was thoughtfully written and clearly defined."
White pointed out the cannabis industry in Missouri is thriving, which he said proves the "small local fee posed no obstacle to growth."
“Instead of crafting a transparent, workable framework, lawmakers allowed industry insiders to shape the constitutional amendment, leaving local governments and the courts to clean up the confusion," White said in his statement. "That failure has now come full circle in a decision that denies counties the ability to carry out the will of their voters, which undercuts the ability of counties to deliver on what their voters overwhelmingly approved."
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