The Missouri Supreme Court is reviewing the legality of overlapping cannabis taxes imposed by multiple local governments on dispensaries. According to the Missouri Director of Revenue, Patricia E. Vincent, the state’s constitution allows any local government to levy a cannabis tax of up to 3% on top of existing sales taxes. This interpretation challenges claims made by Robust Missouri Dispensary 3 LLC, which argues that counties can only tax dispensaries in unincorporated areas, while municipalities can only tax those in incorporated areas.
Vincent responded to the dispensary’s argument, characterizing it as leading to an ‘absurd’ outcome by restricting local governments’ ability to impose taxes. She emphasized that the constitutional amendment, approved by voters, was designed to ensure local governments maintain their authority to impose cannabis taxes. This perspective aligns with the views of two counties advocating for their right to impose overlapping taxes, asserting that a ban on such taxes undermines the will of the voters who approved the amendment.
The outcome of this case could have significant implications for the cannabis industry in Missouri, particularly for dispensaries that may face increased tax burdens if the court rules in favor of allowing overlapping taxes. The decision will clarify the scope of local governments’ taxing authority regarding cannabis sales within their jurisdictions.
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