Missouri marijuana dispensaries are suing over whether counties can 'stack' tax on weed sales

The constitutional amendment that legalized recreational weed sales in Missouri included a 6% statewide tax and allowed local governments to charge a sales tax of up to 3% — but it's not clear if both counties and cities can tax the same sales. Now, two lawsuits are calling the double-taxation an "unconstitutional money grab."
Marijuana prices rose in many parts of Missouri on Oct. 1 as new local taxes took effect. Lawsuits filed in Buchanan and St. Louis counties argue that some of those taxes are illegal.

The constitutional amendment that legalized recreational cannabis sales included a 6% statewide excise tax and authorized local governments to charge a sales tax of up to 3%. The question now before the courts is whether the local taxes can be “stacked,” meaning a dispensary within the boundaries of an incorporated city must collect both a county-imposed tax and a tax authorized by a vote in the municipality, or if only the city tax applies.

In an Oct. 10 news release announcing the St. Louis lawsuit, the Missouri Cannabis Trade Association called the effort to collect both an “unconstitutional money grab” that violates the terms of the amendment passed in November.