Missouri Judge Approves Additional Cannabis Tax in Buchanan County

Cannabis tax revenue growth

Introduction: In a significant legal development, a second judge in Missouri has ruled in favor of ‚Äútax stacking‚ÄĚ for adult-use cannabis sales. Buchanan County, known for its progressive stance on cannabis, now allows an additional tax collection on top of municipal taxes. This decision has implications for both local governments and consumers.

The Ruling and Implications:

Circuit Judge Daniel Kellogg, presiding in Buchanan County, upheld the county‚Äôs authority to impose an extra tax on adult-use cannabis sales within the Saint Joseph City limits. The ruling dismisses the petitioner‚Äôs argument that ‚ÄúLocal Government‚ÄĚ should prohibit such taxation. According to Judge Kellogg, both the city and the county fall under the definition of ‚ÄúLocal Government,‚ÄĚ granting them the power to collect this tax.

Cannabis tax revenue growth


  • Buchanan County: Located in northwestern Missouri, Buchanan County has become a focal point for cannabis-related legal battles. The county‚Äôs willingness to explore innovative tax policies has drawn attention from both cannabis companies and legal experts.
  • Vertically Integrated Cannabis Company: Vertical Enterprise, based in St. Joseph, Missouri, initiated the lawsuit against the Buchanan County Collector‚Äôs office, the Missouri Department of Revenue, and the Buchanan County Clerk‚Äôs office. The company contested the additional 3% tax imposed by the county.
  • Existing Tax Structure: Prior to this ruling, sales taxes in Missouri could already reach up to 12%. The state imposes a 6% tax, and local governments can add an extra 3% tax on top of that.

Consumer Impact:

  • Outrage and Concern: Vertical CEO Chris McHugh expressed frustration, stating, ‚ÄúConsumers should be outraged. They‚Äôre paying this.‚ÄĚ With the cumulative tax burden, cannabis consumers in Buchanan County face higher costs than ever before.
  • Broader Implications: Judge Kellogg‚Äôs ruling sets a precedent for other counties and cities in Missouri. It aligns with a similar decision by St. Louis County Circuit Judge Brian May, who also affirmed the authority of both counties and cities to levy taxes on cannabis sales.

The Buchanan County ruling underscores the evolving landscape of cannabis taxation. As more states legalize cannabis, local governments grapple with balancing revenue needs and consumer affordability. For now, Buchanan County stands as a trailblazer in this ongoing debate.

By Ethan Mitchell

Ethan Mitchell is the visionary founder of CBD Strains Only, a leading online platform dedicated to providing premium CBD products and information. With a passion for holistic wellness and a deep understanding of the benefits of CBD, Ethan's mission is to empower individuals to enhance their well-being through high-quality CBD strains.

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