Missouri: Voters in Multiple Cities and a County Approve Ordinances Establishing Local Marijuana Tax

During tonight’s primary elections, voters in seven Missouri cities and one county gave approval to ballot propositions establishing local marijuana taxes.

Marijuana was legalized in Missouri in 2022, with marijuana stores opening in February, 2023. The law allows those 21 and older to purchase and possess up to three ounces of marijuana, while allowing them to cultivate up to six marijuana plants for personal use. Recreational marijuana is taxed at 6%, in addition to the state’s 4.2% statewide sales tax.

The state’s marijuana law allows localities to establish a city-wide marijuana tax, if given approval by voters. During tonight’s election, voters in Desloge, Dent County, Breckenridge Hills, Cool Valley, Fenton, Marthasville, Pagedale, Velda City and Winchester voted on ordinances to implement a 3% marijuana tax, with all but Breckenridge Hills voting in favor.

“Shall the City of Desloge, Missouri, impose a sales tax of three percent (3%) on retail sales of adult use marijuana sold in the City of Desloge, Missouri?”, asks the ordinance for Desloge, which is almost identical in language to the ordinances approved in the other municipalities.

The Breckenridge Hills ordinance was rejected by just five votes. Support was strongest in Fenton and Desloge, with 77% and 76% voting to establish the local marijuana tax

According to the Missouri Department of Health and Senior Services, there was $113.4 in legal marijuana sold in February, an increase of $3.6 million from the total sales for January. In 2023 there was $1.3 billion in legal marijuana sold, resulting in over $100 million in tax revenue for the state.

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