[[{“value”:”
Jefferson County’s sales tax on recreational marijuana sales has brought in $427,300.02 in revenue so far this year, County Executive Dennis Gannon said.
Missouri voters approved a measure in November 2022 that allowed the sale of recreational marijuana for adult use. The measure also allowed the state to charge a 6-cent sales tax on recreational marijuana purchases. As part of the measure, cities and counties are allowed to ask their voters to approve an additional 3-cent tax.
County voters decided in April 2024 to allow the additional 3-cent sales tax to be charged on all marijuana sales, and the county began collecting revenue from that tax about five months ago, Gannon said.
He said he had expected the 3-cent sales tax on recreational marijuana to bring in more revenue than it has.
“We’re now in the fifth month of collecting sales tax for recreational marijuana, and a trend is developing,” he said. “The numbers are not what we expected, hoped for or predicted. If we continue with this trend, we will possibly do $1 million before the end of the year.”
Gannon added that overall sales tax revenue is up by $115,346, or 1.74 percent, over last year at this time.
The county’s overall sales tax revenue as of May 12 was $6,759,819.51, he said.
At this time last year, the county’s overall sales tax revenue was $6,644,473.19, and for the entire year, the county collected $16,540,845.80 in sales tax revenue, county Auditor Kristy Apprill said.
She said the county does not receive all the sales tax revenue it collects, as several tax increment financing districts within the county are allocated a portion of the revenue.
Gannon said sales tax revenue was relatively flat last month.
“Sales tax is not the only thing we gauge the health of Jefferson County on, but it certainly is a good indicator as far as people getting out and spending money in the county,” he said.
Pending lawsuit
While the county is beginning to see revenue from the marijuana sales tax, officials have no plans to spend it just yet, Gannon said.
The Jefferson County Council voted in March 2024 to allocate the sales tax revenue toward paying down county debt, and after that, it would fund uses determined by the county executive.
However, the Missouri Supreme Court is currently considering a case on “stacked taxes,” which may change how much revenue the county sees from the tax. The court heard arguments on May 13 in a case brought by the Robust cannabis dispensary company on whether both St. Louis County and Florissant can enact 3-cent sales taxes on top of the state’s tax.
Robust’s attorney argued at the hearing that only one local government should be able to collect the 3-cent tax, not two. Attorneys for St. Louis County argued that the constitutional amendment approved by voters gives express approval for local governments, defined as “an incorporated area, a village, town, or city and, in the case of an unincorporated area, a county” to levy the tax.
Gannon said the county’s revenue on the marijuana tax may dip, depending on what the Missouri Supreme Court decides on stacked taxes, adding that the county might have to give back some of the tax revenue to municipalities if the court rules against stacked taxes.
“For all those who may want to know what in the heck we’re doing with it, just be patient,” Gannon said. “We’re not going to spend any money until we know for sure what we have.”
Data from the Missouri Department of Health and Senior Services (DHSS) shows that 90 of the state’s 114 counties have opted for the additional tax, meaning many local governments may be affected by the Supreme Court’s ruling.
Marijuana use in Missouri
The most recent data from DHSS shows that Missourians spent more than $111 million on recreational marijuana in April. Missourians also spent $14.78 million on medical marijuana in April.
In Jefferson County, there are more than 4,000 registered users of medical marijuana. DHSS does not have data on recreational marijuana use in the county.
State revenue from the adult-use marijuana sales tax is transferred to the Missouri Veterans Commission, the public defender system and the DHSS. As of May 16, the veterans commission and DHSS had each received $27,136,010 since they began collecting it, and the public defender system had received $15,454,026 from the sales tax.
According to the DHSS, the Veterans Commission uses the funds for health care for military veterans and their families. The public defense system uses the funds for legal assistance for low-income Missourians, and the DHSS uses them for a substance use disorder grant program.
”}]] Revenue from the new tax on adult-use marijuana sales was found to be a bit lacking in the first five months since Jefferson County began collecting the tax, County Executive Dennis Gannon said. Read More
