YOUR BUSINESS AUTHORITY
Springfield, MO
The city of Springfield will ask voters to vote on a proposed 3% tax for sales of adult-use cannabis, also called recreational cannabis, in a special election on Aug. 8.
Recreational marijuana is already taxed by the state at 6%, and the city sales tax rate of 2.125% is also assessed on all retail goods. If voters approve the measure, an additional 3% local sales tax could generate up to $1.8 million per year for public safety, addiction prevention and treatment services, mental health services and housing, according to a news release from the city.
Missouri Constitutional Amendment 3, which legalized recreational use of marijuana, has a provision that allows governing bodies to place an additional 3% local tax on retail sales with voter approval, according to the release.
Springfield is the largest Missouri city without a 3% local tax on adult-use marijuana. Other cities in the state with the tax are Kansas City, St. Louis, Columbia, Joplin and Ozark, along with the counties of Jackson, St. Louis, Boone, Christian, Webster, Polk, Newton and Jasper, according to the city.
The tax would not apply to purchases of medical-use marijuana for patients with state-approved medical cards.
The cost to mount a citywide special election for the tax measure is $250,000. Springfield City Council is scheduled to vote on an allocation in that amount at its meeting Aug. 7.
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How much sense does it make to spend $250,000 and recover the cost at 3%. You would need to generate over $8,000,000 just to cover the election cost.