In Missouri, adult-use marijuana consumers could see a significant rise in prices due to a legal battle over “stacking” sales taxes.
Two court cases, involving marijuana dispensaries Robust Missouri 3 LLC and Vertical Enterprises, are set to determine whether Missouri municipalities and counties can stack their own 3% taxes on top of the state’s 6% excise tax for recreational marijuana.
The debate over the imposition of sales taxes on marijuana has been argued since the implementation of recreational marijuana sales in February 2023.
Missouri’s Constitution dictates that adult use marijuana sales be taxed at 6%, as opposed to a tax of 4% for medical marijuana purchases.
The language of the Missouri Constitution reads, “Pursuant to Article III, Section 49 of this Constitution, the governing body of any local government is authorized to impose, by ordinance or order, an additional sales tax in an amount not to exceed three percent on all tangible personal property retail sales of adult use marijuana sold in such political subdivision. The tax authorized by this paragraph shall be in addition to any and all other tangible personal property retail sales taxes allowed by law, except that no ordinance or order imposing a tangible personal property