Missouri Supreme Court weighs limits of local sales taxes on marijuana purchases
Missouri’s Supreme Court is now considering whether both cities and counties can impose a local 3 percent tax on the same adult-use marijuana sales, a practice known as “stacking,” in a case that could reshape tax policy across the state.
The dispute, Robust Missouri 3 v. St. Louis County, stems from a Florissant dispensary that currently charges customers nearly 21 percent in total taxes, including a 6 percent state marijuana tax and two local taxes of 3 percent each from both the city of Florissant and St. Louis County.
“There’s only supposed to be one local government, one boss, one master dictating outcomes and imposing the 3 percent tax,” attorney Eric Walter argued before the court on behalf of Robust Missouri 3.
In November 2024, the Missouri Court of Appeals Eastern District sided with Robust, ruling that the Missouri Constitution permits only one local government to impose the additional marijuana sales tax. Judge John Torbitzky wrote in the unanimous decision that the language in Article XIV is “plain, unambiguous,” and makes clear that “only one local government is authorized to impose an additional three percent sales tax.”
That decision overturned an earlier ruling by St. Louis County Circuit Judge Brian May, who argued that prohibiting counties from taxing marijuana sales in incorporated areas could undermine their ability to enforce health and safety regulations. Laura Robb, attorney for St. Louis County, echoed that concern in Supreme Court arguments, saying, “It’s only logical that portions of the revenue should be captured by the institution with the public health duties.”
Walter countered that the case is not about public health regulation but about tax authority and constitutional limits. “This is not a county health code case,” Walter said, a distinction also affirmed by the appellate court.
Under Article XIV, passed by voters in 2022 to legalize adult-use marijuana, the term “local government” is defined as a city, town, or village in incorporated areas, and as a county in unincorporated areas. The implementing rules from the Division of Cannabis Regulation reinforce that interpretation, but do not address dual taxation specifically.
Judge Kelly Broniec questioned how local ballot initiatives, such as bans on dispensaries, would function if both city and county governments were considered the applicable “local government.” Walter pointed out that Article XIV includes specific procedures and even prescribed ballot language for those bans, reinforcing the intent for only one entity to hold that authority.
Robb acknowledged the ambiguity, responding, “I don’t know the answer to that question,” when pressed about what would happen if a city voted one way and a county the other.
The outcome of the case could affect more than 70 jurisdictions across Missouri that currently collect both municipal and county marijuana sales taxes. A ruling in favor of Robust would not only reduce the effective sales tax at many dispensaries but could also result in refunds and revised tax policies.
Industry stakeholders have closely followed the case since it was filed in 2023. In an earlier decision that upheld the ability to stack taxes, Judge May wrote that adopting Robust’s interpretation would lead to “absurd outcomes,” such as municipalities ignoring county ordinances. However, the appellate court rejected that rationale, instead focusing on the constitutional text.
The Missouri Cannabis Trade Association (MoCannTrade) has also weighed in on the issue, describing dual taxation as a misinterpretation of Amendment 3. “We are proud to work with our industry partners to stand up for Missouri cannabis customers against this unconstitutional money grab,” Executive Director Andrew Mullins said at the time.
For a breakdown of the appellate court’s ruling and its statewide implications, see Greenway’s earlier report: Missouri appeals court rules against stacking taxes on recreational marijuana sales
The Supreme Court’s ruling, expected later this year, will provide final clarity on how local taxes can be imposed in Missouri’s adult-use cannabis market.
The full hearing can be heard here.
