MO marijuana legalization was estimated to produce $79 million in state and local sales tax revenue annually; $241 million produced in 2024

MO marijuana legalization was estimated to produce $79 million in state and local sales tax revenue annually; $241 million produced in 2024

Over the past 12 months, Missouri’s legal cannabis program has generated an astounding $240.78 million in new sales tax revenue for state and local governments across Missouri. Of that total, $143.30 million has gone to state government, with an additional $97.48 million generated for local Missouri governments. The figures are on top of the millions in licensing fees and payroll taxes that the cannabis industry pays each year. Veterans’ health care is the single largest recipient of these funds.

When Missouri legalized adult use marijuana sales in Nov. 22, the State Auditor’s fiscal note estimated Missourians could expect $40.8 million in new annual state revenues and an additional $13.8 for local governments each year. Likewise, when medical marijuana was on the ballot in 2018, the fiscal note estimated it would generate revenues of $18 million for the state annually and an additional $6 million for local governments.

“Promises made, promises kept,” said Andrew Mullins, Executive Director of the Missouri Cannabis Trade Association, MoCannTrade. “When Missourians choose to purchase cannabis from a legal, regulated dispensary, they not only know the product is safe, lab-tested and grown right here in Missouri, they are also helping generate hundreds of millions in revenue each year, supporting everyone from Missouri veterans to public school students to local communities.”

The sales tax figures don’t include the extra 3% sales tax that dozens of counties have been charging over the past year on sales in incorporated areas, which Missouri’s Eastern District Court of Appeals struck down as unconstitutional earlier this month.

The $240 million in additional state and local sales tax revenue is in stark contrast to purchasing from the illicit market or purchasing synthetic marijuana, like Delta-8. Unregulated hemp-derived cannabinoids are rarely grown in Missouri, don’t pay these cannabis taxes, are increasingly sold at gas stations, convenience stores and head shops, and are marketed to kids. The sale of these products is both unsafe and deprive Missouri veterans and local communities of the resources and tax revenues they deserve.

Adult Use Sales Medical Sales Total monthly sales State regular tax Local regular tax State medical tax State adult use tax Local adult use tax
4.225% 4.165% 4% 6% 3%
23-Nov 96.28 16.39 112.67 4.7603075 4.6927055 0.6556 5.7768 2.8884
23-Dec 106.44 16.77 123.21 5.2056225 5.1316965 0.6708 6.3864 3.1932
24-Jan 94.76 15 109.76 4.63736 4.571504 0.6 5.6856 2.8428
24-Feb 98.33 15.07 113.4 4.79115 4.72311 0.6028 5.8998 2.9499
24-Mar 108.68 16.03 124.71 5.2689975 5.1941715 0.6412 6.5208 3.2604
24-Apr 104.58 15.47 120.05 5.0721125 5.0000825 0.6188 6.2748 3.1374
24-May 108.15 15.5 123.65 5.2242125 5.1500225 0.62 6.489 3.2445
24-Jun 104.94 14.64 119.58 5.052255 4.980507 0.5856 6.2964 3.1482
24-Jul 108.58 15.01 123.59 5.2216775 5.1475235 0.6004 6.5148 3.2574
24-Aug 111 15.15 126.15 5.3298375 5.2541475 0.606 6.66 3.33
24-Sep 103.35 14.08 117.43 4.9614175 4.8909595 0.5632 6.201 3.1005
24-Oct 108.56 14.69 123.25 5.2073125 5.1333625 0.5876 6.5136 3.2568
Total sales 1253.65 183.80 1437.45
Sales tax 60.7322625 59.87 7.35 75.22 37.61
State sales tax 143.30              
Local sales tax 97.48              
Total sales tax 240.78              
All figures are in millions

The Tax Foundation estimates that the average sales tax in Missouri is 8.39%

None of these figures include sales tax figures generated by unconstitutional tax stacking

   

None of these figures includes millions in annual license fees or payroll tax

Monthly cannabis sales data can be found here: https://health.mo.gov/safety/cannabis/stats.php

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MoCannTrade (The Missouri Cannabis Trade Association) is an association of business owners, professionals, patients and consumers responsible for helping to implement successful, safe, compliant medical and adult use cannabis programs in Missouri.

The membership-based association is directed by a board of diverse professionals experienced in cannabis production and retail, healthcare, law, pharma, science, agriculture, law enforcement and security, finance, public affairs and regulatory sectors.

To learn more about MoCannTrade please visit www.mocanntrade.org