Controversy And Legal Drama Loom Over Missouri's Cannabis Market Due To Exorbitant Tax Schemes

Missouri's cannabis regulator said last week that some of the winners of 48 cannabis microbusiness licenses under Amendment 3, which legalized marijuana in 2022, are now trying to sell them, reported Missouri Independent.

The "microbusiness license" program sought to hand out cannabis licenses to those in communities negatively affected by marijuana criminalization. The state issued permits to the winners on Oct.2.

In the Oct.10 guidance, Missouri's Division of Cannabis Regulation warned the winners that they have "become aware" of their intention to sell the licenses and that those who met the eligibility qualifications under the program must continue to be the majority owners and operators of the businesses.

Lisa Cox, the spokeswoman for the division, cited "two advertisements," suggesting such actions in an email to The Independent.

"We spoke directly with the licensees, and they explained they are seeking investors and do not intend to sell the licenses prior to becoming operational or without department approval," Cox explained. "Seeking additional investors prior to being operational is allowed if the change in ownership does not exceed 50%."

Cannabis Businesses Fight Against ‘Stacked’ Marijuana Taxes

Meanwhile, a pair of lawsuits were filed recently by two Missouri cannabis companies against county marijuana sales taxes of 3%, which, when "stacked" on a 6% statewide excise tax harms businesses statewide, reported Missouri Independent. 

Robust Missouri 3 LLC, the dispensary operator in Florissant, took legal action after the Department of Revenue informed it about a sales tax rate of nearly 15% for recreational marijuana sales, which, apart from the regular tax rate of practically 9% included county marijuana sales tax as well. The company is now in a legal spat with the Department of Revenue and St. Louis County. It seeks a court order that prohibits the county tax collection. 

The other cannabis company, St. Joseph dispensary Vertical Enterprises in Buchanan County, filed a lawsuit against Buchanan County Collector Peggy Campbell.

Both companies argue that "stacked" taxes would "irreparably" harm their business.

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