Missouri cannabis sales surpass the $100M mark, but cities want a larger piece

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Cities and municipalities may consider increased taxes on the state’s cannabis ecosystem

Missouri launched the recreational cannabis market on February 3, and sales are already starting to take off in an incredible way. Last month, Missouri surpassed the $100 million mark in sales related to adult-use and medical cannabis, making it a very successful first month of operation thanks to recent market expansion. Because of that sudden boom, officials are considering adding more taxes.

Medical cannabis sales were able to close last month with just over $31 million in sales. However, the catapult in that figure came now that recreational cannabis has entered the equation, bringing in a total of $71.7 million in sales last month. Officials added that this total far exceeded those of neighbors such as Illinois.

Seeing as how the Show Me State’s recreational cannabis market had an incredible response, dozens of county and municipal governments in the Kansas City area are now considering adding local taxes to recreational marijuana sales. Under state law, local governments have the authority to add up to a 3% sales tax on marijuana products in addition to the 6% state tax that applies. It would not be at all strange that many would opt for that possibility seeing the gold mine that is being generated thanks to this market.

Medical cannabis is taxed at 4%, and those sales are not eligible for additional local taxes. As is to be expected, and as has been evident in other states, the medical cannabis market in Missouri is likely to see some decline in monthly sales now that a more attractive offering has come online.