– Marijuana prices increase across Missouri due to new local taxes
– Lawsuits filed by Buchanan and St. Louis Counties contest the legality of these taxes
– Recreational cannabis initial legalization included a 6% statewide excise tax, with allowance for local government additional sales tax
Marijuana Business Caught Up in Legal Crossfire in Missouri
With marijuana business booming, a rise in prices added financial strain to many consumers in Missouri on Oct. 1. Local government deployed new taxes which have ruffled some feathers. Buchanan and St. Louis counties are seeking redress by arguing in the courts that these taxes are illegal.
Within the constitutional amendment that legalized the recreational usage of marijuana, a 6% statewide excise tax was included. On top of this, it gave local governments the green light to charge additional sales tax. Yet, recent lawsuits have called into question whether these local taxes are within the spirit, or the letter, of the law.
Counties Combating Cannabis Tax
The core of these issues lie with the new taxes imposed by Missouri counties. This addition to the statewide excise tax has inflamed debate over the legality of “stacking” taxes on the sales of marijuana. The counties of Buchanan and St. Louis have set the legal machinery in motion with a pair of lawsuits, challenging the rightful ability of counties to impose these taxes.
The Breezy Take
There’s a lot of green caught up in red tape here. While legalization has generally given the marijuana industry a shot in the arm, it appears that the question of taxing is throwing a wrench into the cogs. From the consumer standpoint, these additional taxes seem to make a high price even higher. Given the budding nature of the legal marijuana industry, it’s unsurprising that legal battles are occurring as stakeholders suss out the details of new laws and regulations. The court’s decision on this matter could have major implications for the cannabis industry, local governments, and marijuana consumers in Missouri.
Original article: https://missouriindependent.com/2023/10/17/pair-of-lawsuits-challenge-whether-missouri-counties-can-stack-tax-on-marijuana-sales/