Missouri's Cannabis Maze: Sales Drop, Lost Taxes And Equity Concerns

Declining Sales, Growing Concerns

Missouri’s cannabis market has experienced a notable downturn. October sales totaled $113.1 million, marking the lowest since the market launched in February and a third consecutive month of decline. 

This includes $95.5 million in adult-use products and $17.6 million in medical marijuana. The decline, noted MJBizDaily, has been ongoing since August, dropping from July’s $123.2 million to $119 million and further to $117.8 million in September​​.

Taxation Troubles In St. Louis

In a costly administrative oversight, St. Louis missed an opportunity to collect a new 3% sales tax on recreational marijuana. The city, having failed to submit the necessary paperwork in time, potentially lost about $500,000 in revenue since October, reported KSDK. 

The Missouri Department of Revenue filed a waiver to begin collecting revenue from January 1, 2024​​​​​​​​.

Criticism Of Cannabis Packaging Regulations

Missouri's new cannabis regulations have sparked debates among lawmakers and industry leaders. The regulations, aiming to make marijuana products less appealing to children, restrict label and package designs, barring the use of multiple colors and certain imagery. 

Missouri Independent reports that rules have been criticized for being overly complex and potentially exceeding the regulatory body’s constitutional authority.

License Revocation Controversy

Delta Extraction, a Robertsville-based company, faces license revocation from December 2 for allegedly importing out-of-state marijuana products and other regulatory violations. The Missouri Independent reported that Delta Extraction disputes the charges, arguing its use of hemp-derived THC-A was legal. The state, however, insists that emergency rules filed in January prohibited such practices.

Expungement Milestone And Investigation Around Social Equity Concerns

Missouri recently legalized cannabis and created 11,000 jobs. Yet, despite expunging 100,000 convictions, social equity measures are still lacking in legislation.

JD Supra said allegations of ‘egregious exploitation’ in the license application process have emerged and State Senator Karla May is seeking an investigation into deceptive practices undermining the intent of Constitutional Amendment 3.

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