Columbia City Council to approve marijuana sales taxes

COLUMBIA, Mo. (KMIZ)

During Monday’s Columbia City Council meeting, the city could move closer to implementing a 3% sales tax on recreational marijuana in Columbia. Missouri residents voted to pass the legalization of recreational marijuana in November.

It’s been almost three months since recreational marijuana was made legally available to Missouri residents over 21. Alongside the new regulations, the amendment added a 6% state sales tax on recreational marijuana purchases. Local governments are also allowed to add their own 3% sales tax.

Currently, the city has a 2% sales tax on medical marijuana sales. Matthew Lue, the City of Columbia Finance Director, said the city collected around $350,000 from medical marijuana sales in 2022. The 3% increase will not affect medical marijuana taxes.

On April 4, Columbia voters saw this question on their ballot, “Shall the municipality of Columbia, Missouri impose an additional sales tax of three percent (3%) on the retail sale of adult-use marijuana?” 

Boone County voters approved 3% taxes on recreational marijuana during the election. Columbia residents also voted in favor of the 3% tax too, with 12,183 voters in favor and 5,778 against. 

Tomorrow, the council will vote to officially accept the election results before they’re submitted to the Department of Revenue. Boone County Clerk Brianna Lennon said the process was also followed by the county and is more of a formality after getting the results. 

The city estimates that Columbia could collect between $400,000 to $1 million during the tax’s first year. According to the city's website, the money would go towards, “the City’s general fund and could fund public safety, public health and social service initiatives.”

There are six licensed dispensaries in Columbia. The tax wouldn’t go into effect for the businesses until Oct. 1. That revenue wouldn’t be seen until Jan. 10, 2024 from monthly filers or March 10, 2024 from quarterly filers.

However, it hasn’t been clarified if the sales taxes will stack or not. With a 6% state tax, 3% county tax, and 3% city tax, consumers could end up paying a 12% tax for recreational marijuana purchases.

Columbia isn’t the only city in Missouri that had the 3% sales tax on their ballot. Other areas like Kansas City, Jefferson City and Centralia voted on the topic during the April 4 election too.