Missouri’s double-tax practice on marijuana unconstitutional

Local governments in Missouri can add a 3% local tax on marijuana products to state sales tariffs, but the law forbids cities and counties to “stack” local levies on top of one another.

That’s the “unambiguous” language in the state constitution, according to a Missouri Court of Appeals decision that’s set to cut retail taxes on marijuana products in St. Louis County.

Ninety of the state’s 114 counties imposed a 3% local cannabis tax on top of the state’s 14.98% sales tax, the Missouri Independent reported.

But 74 of those counties also include a city or town that’s imposed its own 3% on top of the county lax.

That’s the practice that the appeals court says is unconstitutional.

The challenge was centered on an interpretation of the word “and,” the Independent reported, and whether a county’s tax applied in unincorporated areas as well as municipalities within the county.

The ruling reverses an earlier lower-court decision in the challenge to the dual-taxation practice brought by Robust Missouri 3, which operates an adult-use marijuana store in St. Louis County.

In addition to St. Louis County, St. Charles County fought the challenge in court.

The counties have 30 days to appeal.

A spokesperson for St. Louis County said the government is still “reviewing the ruling and determining next steps,” the Independent reported.

The ruling means about a $3 million monthly tax cut for consumers, according to an industry association estimate.

An appeals case in Buchanan County is pending.