After Missouri voters last month approved a constitutional amendment legalizing recreational marijuana, two local cities are confronting the question of whether to tax the drug.
The amendment …
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After Missouri voters last month approved a constitutional amendment legalizing recreational marijuana, two local cities are confronting the question of whether to tax the drug.
The amendment establishes a 6% statewide sales tax on recreational marijuana, but also allows local cities to levy an additional 3% sales tax on recreational marijuana products. And both of those taxes would be on top of the normal state and local sales taxes that are already in place.
Aldermen in Warrenton and Wright City are now grappling with the question of whether to place a marijuana sales tax on election ballots this April. A tax would have to be approved by a majority of local voters.
Warrenton is likely to be the town most immediately impacted by marijuana legalization, compared to others in the area. Warrenton currently is host to the only operational medical marijuana dispensary in the county, Proper Cannabis.
Stores will need a special license to sell recreational marijuana products, which won’t be issued until 2023. Medical dispensaries like Proper Cannabis have first priority for obtaining those licenses once they become available.
The looming possibility of a sudden boom in legal marijuana sales had some Warrenton city officials asking if they should be getting ahead of the change with a recreational marijuana sales tax proposal to voters this spring.
“I say leave it up to the citizens,” commented Ward 2 Alderman Scott Schulze during a Dec. 6 public meeting. “I say we put it on the ballot and they vote on it.”
But two other aldermen immediately spoke against the proposal.
“I’m a no,” stated Ward 3 Alderman Jeff Jaspering. “People don’t like to be taxed, on top of tax, on top of tax. ... People would probably vote it down.”
Ward 2 Alderman Steve Cullom said he shares that opinion.
Mayor Eric Schleuter asked aldermen to delay any final decision, and directed Warrenton’s staff and attorney to provide more information and show how a proposal to voters would be structured.
In neighboring Wright City, the marijuana situation is a little more complicated. A business was cleared in 2021 to build a medical marijuana dispensary near Highway H, but never initiated construction, meaning the city has no operational marijuana facility.
However, with recreational legalization going into effect, there’s an open question of whether a licensed marijuana business will open in Wright City in the near future.
The topic was brought to Wright City aldermen on Dec. 8, who were much more willing to consider a tax proposal than their neighbors.
“That sounds like money right there,” quipped Alderman Nathan Rohr.
“That seems like a no-brainer,” agreed Mayor Michelle Heiliger. Because of the months-long delay required in proposing and voting on a tax, she said the city could be missing out if leaders fail to act before a marijuana business opens.
“If we wait, and they come in (before a tax is passed), how much money are you losing out on because we didn’t have a tax in place?” Heiliger asked.
Still, Wright City aldermen didn’t make a final decision on whether or not to pursue a recreational marijuana sales tax. Local cities don’t have to make any decision on a tax proposal until mid-January in order to put the question to voters in April.
A couple factors help explain the difference in tax-related attitudes in Warrenton and Wright City. Firstly, Warrenton’s sales tax is 1% higher than Wright City’s (or 2% higher at certain stores), leading to “tax fatigue” among some voters and newer representatives in Warrenton.
Secondly, Wright City has significant unfunded infrastructure needs, a problem that Warrenton mostly doesn’t suffer from as the economic center of the region. For Wright City’s leaders, a tax on recreational marijuana could be a tempting opportunity to help correct the imbalance between the city’s needs and its available funding.
