Buying expensive weed is one thing, but the taxes stacked on top of your total is a whole different ballgame, especially in a place like Missouri. So, what’s up with cannabis taxes?
Since MO first legalized recreational cannabis, the state has been in a tussle regarding how it wants to handle the tax situation. With some parties wanting to be able to stack taxes on top of taxes while residents oppose, there has been a lot of discourse surrounding these additional weed fees.
That’s why, today, we’re looking closer at Missouri’s cannabis taxes. How much will you spend on recreational versus medical, and is weed going to get more expensive for adult-use consumers?
Let’s find out.
Wait, Is Marijuana Taxed?
First things first, yes, marijuana is taxed in the US — at both state and local levels. However, every state has slightly different tax amounts, making cannabis more affordable in certain places.
Most importantly, many states choose to not put sales tax on medical marijuana; but, they do impose sales taxes on recreational cannabis. For an example, let’s look at the Show-Me State.
In Missouri, medical marijuana is subject to a low tax rate, and those taxes collected from medical marijuana are typically allocated to specific programs, such as those supporting veterans’ services.
The state taxes recreational marijuana, on the other hand, at a higher rate. Missouri imposes a tax on recreational cannabis sales, and local governments have the option to add their own taxes.
Sounds expensive, right? Correct. That’s exactly why Elevate Holistics stresses the importance of a medical marijuana card.
If you want to find out how much medical versus recreational weed is in your city, you can check out our medical marijuana savings calculator.
You can also learn the average cost of an ounce of weed in our blog.
Current Cannabis Taxes in Missouri
In Missouri, both medical and recreational marijuana are subject to taxation, with distinct differences in their tax rates.
For recreational marijuana, the state imposes a 6% sales tax. Additionally, local governments can add up to a 3% sales tax on recreational sales, resulting in a combined tax rate of up to 9% in certain areas.
In contrast, Missouri medical marijuana is taxed at a lower rate of 4%. The revenue collected from medical marijuana taxes helps cover the implementation costs for the Department of Revenue and the Department of Health and Human Services.
The remaining funds support the Missouri Veterans Commission, which provides services such as operating and maintaining veterans’ homes, health services, mental health support, training, education, and housing assistance.
However, the cannabis tax discussion in Missouri doesn’t stop there.
The state has been discussing implementing a tax-stacking measure that would allow both city and county governments to impose their own 3% sales taxes on recreational cannabis. And this, understandably, has sparked a huge debate.
Currently, in a city with a 3% local tax, the total tax on recreational marijuana stands at 9% (6% state + 3% local). With tax stacking, both city and county governments could impose their own 3% sales taxes, raising the total tax rate to a whopping 12%.
What Might Change
Thankfully, two significant court cases are challenging this measure.
Robust Missouri 3 LLC and Vertical Enterprises are both arguing that stacking taxes violates the state constitution.
Robust Missouri operates the Fell State dispensary in Florissant, where both the city and St. Louis County have imposed additional 3% sales taxes, pushing the total tax rate to 12%. The LLC contends that local governments should only impose a combined maximum of 3%, but a St. Louis County Circuit Judge ruled against them, stating that both taxes are valid.
Robust Missouri has since appealed the decision.
Vertical Enterprises, operating in St. Joseph, Buchanan County, faces a similar situation.
The county has attempted to impose a 3% sales tax on top of the city’s 3% tax. Vertical Enterprises argues that this practice violates the Missouri Constitution’s definition of a “local government.”
Their case is still pending in the Circuit Court of Buchanan County.
If courts rule in favor of tax stacking, consumers will face higher costs for recreational marijuana. A $100 purchase could rise to $112 with the additional taxes, before considering general state and local sales taxes.
Higher taxes could push consumers towards the illicit market, undermining the regulated market’s benefits, including funding for public health and veteran services.
Dispensaries may also face financial strain and operational uncertainty if required to retroactively collect or pay stacked taxes, affecting their customer relationships and market stability.
The outcomes of these court cases will significantly impact Missouri’s cannabis industry and its consumers.
How to Spend Less on Cannabis Taxes in Missouri
With all of these cannabis tax discussions in the air, the best way to ensure that you save money while still getting the products you need is with a Missouri medical marijuana card.
No matter what happens, having your MO MMJ card guarantees just the 4% sales tax and nothing else. You also get medical-only discounts at various dispensaries and gain access to services like cannabis delivery with your medical card.
Getting your card takes just a few minutes online with Elevate Holistics, and you’ll save tons of money overall.
And, while you do have to pay for your initial doctor’s appointment, this will pay for itself after your first few trips to the dispensary and the money you save in taxes.
Get Your MO MMJ Card Today and Start Saving on Cannabis Taxes
If you’re tired of these back-and-forth discussions on cannabis taxes and whether or not your weed’s about to get really expensive, it’s time to get a Missouri medical marijuana card through Elevate Holistics, instead.
Our telehealth process is quick, easy, and online. You’ll meet with our doctors over the phone in minutes, and then we can walk you through the process of registering with the state.
Before you know it, you’ll be buying your favorite products at the dispensary and finding yourself paying a whole lot less thanks to the lower medical marijuana taxes.
See for yourself and book an appointment to get your card today using the button below.
