Missouri Supreme Court Rules Against Stacked Marijuana Taxes
07/25/2025
Missouri’s highest court has delivered a significant victory for marijuana advocates by prohibiting local governments from imposing additional taxes on cannabis sales beyond what voters approved. The ruling clarifies that only one local government entity—either a city or a county—can impose a 3% tax on marijuana sales, depending on the location of the sale. Cities, towns, or villages can apply the tax within their jurisdictions, while counties are limited to taxing sales in unincorporated areas. This decision overturns a previous interpretation that allowed counties to collect taxes in incorporated areas, resulting in consumers facing multiple layers of taxation.
The ruling stemmed from a lawsuit filed by a St. Louis County dispensary, which argued that the double taxation violated the state’s constitution. The court’s decision, backed by a substantial majority, ensures that cannabis customers are not overburdened by excessive local taxes, which advocates estimate could save consumers millions annually. Jack Cardetti, a spokesperson for the Missouri Cannabis Trade Association, emphasized that the ruling upholds the intent of voters who legalized recreational marijuana, ensuring fair taxation practices that align with the state’s constitutional framework.
The decision has broader implications for Missouri’s booming cannabis industry, which has seen rapid growth since recreational use was legalized. By eliminating stacked taxes, the ruling could make legal marijuana more affordable, potentially boosting sales and encouraging consumers to choose regulated dispensaries over illicit markets. Industry leaders argue this fosters a more equitable market, benefiting both businesses and consumers. However, some counties, like St. Charles and St. Louis, plan to appeal the decision, arguing that additional taxes are justified, similar to other regulated products like alcohol.
Marijuana advocates view this as a step toward protecting consumer rights and ensuring the cannabis industry remains accessible. The ruling reinforces the importance of clear tax policies as Missouri’s marijuana market continues to expand, serving as a model for other states navigating similar legal frameworks.
Reference
The ruling stemmed from a lawsuit filed by a St. Louis County dispensary, which argued that the double taxation violated the state’s constitution. The court’s decision, backed by a substantial majority, ensures that cannabis customers are not overburdened by excessive local taxes, which advocates estimate could save consumers millions annually. Jack Cardetti, a spokesperson for the Missouri Cannabis Trade Association, emphasized that the ruling upholds the intent of voters who legalized recreational marijuana, ensuring fair taxation practices that align with the state’s constitutional framework.
The decision has broader implications for Missouri’s booming cannabis industry, which has seen rapid growth since recreational use was legalized. By eliminating stacked taxes, the ruling could make legal marijuana more affordable, potentially boosting sales and encouraging consumers to choose regulated dispensaries over illicit markets. Industry leaders argue this fosters a more equitable market, benefiting both businesses and consumers. However, some counties, like St. Charles and St. Louis, plan to appeal the decision, arguing that additional taxes are justified, similar to other regulated products like alcohol.
Marijuana advocates view this as a step toward protecting consumer rights and ensuring the cannabis industry remains accessible. The ruling reinforces the importance of clear tax policies as Missouri’s marijuana market continues to expand, serving as a model for other states navigating similar legal frameworks.
Reference
