Breaking: Missouri Supreme Court rules to end double-stacking cannabis tax
Earlier today, July 22, the Missouri Supreme Court ruled to end a double-stacking sales tax on recreational cannabis sales in the state, which will result in $3 million saved by consumers each month, according to the Missouri Cannabis Trade Association (MoCannTrade).
Since Oct. 1, 2023, municipalities in the state were granted the ability to implement a 3% sales tax on all recreational cannabis products.
In the case where municipalities were not taking the 3%, counties could then implement the tax. But as a result, double-stacking taxes began to occur throughout the state, resulting in consumers paying a total of 6% in sales tax.
Robust—a St. Louis-based cannabis company—filed the lawsuit against St. Louis County that initially began the process to end the double-stacking taxes with support from MoCannTrade and other industry leaders.
Now, nearly two years later, the extra pocket change can stay in consumers’ pockets with the recent court ruling.
“Missouri customers already pay their fair share, with sales tax revenue from cannabis in Missouri now tripling original state estimates. The ruling’s clarity preserves Missouri’s standing as one of the nation’s most impactful and accessible cannabis programs, ensuring patients and adult-use consumers continue to benefit from fair pricing, great service, and robust product choice,” MoCannTrade Executive Director Andrew Mullins said in a press release.
The next steps are for the Supreme Court to officially issue a mandate for counties to end the implementation of an additional 3% sales tax that has been costing Missourians for quite some time.