A Missouri circuit court judge ruled that cities and counties can both levy sales taxes on dispensaries on top of the state excise tax.
The ruling was in response to a lawsuit brought by Robust Missouri 3 LLC, which saw the tax rate at its dispensary in Florissant jump to nearly 15% after the city and St. Louis County each approved 3% sales taxes on adult-use marijuana in April 2023, on top of the state’s 6% excise tax, The Missouri Independent reported.
The company questioned whether the constitutional amendment legalizing recreational cannabis sales intended for local governments to be limited to a combined maximum of 3% in sales taxes or if each could impose a separate 3% tax.
St. Louis County Circuit Judge Brian May sided with the local governments, finding that both the city and county taxes are valid. He interpreted the law’s intent “as a whole and not in isolated parts,” emphasizing that the law intended for local governments to be able to “protect public health,” according to The Independent.
Steve Hobbs, executive director of the Missouri Association of Counties, supported the ruling, noting that most counties had voter approval for the taxes.
“The bulk of the counties around