Marijuana tax 'stacking' unconstitutional, Missouri Supreme Court rules

Local governments in Missouri can no longer “stack” marijuana taxes after the state Supreme Court declared the practice unconstitutional on Tuesday.County governments can’t levy a 3% local tax on cannabis sold in cities and towns that also impose the 3% local tax, the court ruled in a 6-1 decision.

ADVERTISEMENT Missouri legalized adult-use marijuana via a 2022 constitutional amendment.Brisk sales began the following year and reached $1.3 billion in the program’s first year.

Under state Amendment 14, sales are subject to a 6% state tax plus state sales taxes.But there is also a 3% local tax, should local governments choose to impose it.

In 2023, cities and counties in areas such as St.Louis both imposed a 3% local tax – for a “stacked” cumulative local tax rate of 6%.

That drew a lawsuit from Florissant, Missouri-based licensed retailer Robust Missouri 3, in which it argued state Amendment 14 intended the local tax to be “a maximum of 3% combined.” In their ruling Tuesday, the judges agreed, upholding an earlier appellate decision that found Amendment 14’s “plain language” to be “unambiguous.” County-level taxes “are valid to the extent they impose a 3% sales tax on non-medical marijuana sold in unincorporated areas,” the majority decision written by Judge Mary Russell states.“But they cannot be enforced within incorporated cities, towns and villages.” ADVERTISEMENT The ruling means state marijuana consumers will save roughly $3 million monthly, according to Andrew Mullins, executive director of industry trade group MoCannTrade.

“Missouri customers already pay their fair share, with sales tax revenue from cannabis in Missouri now tripling original state estimates,” Mullins said in a statement Tuesday....