Fake Dispensaries Don’t Pay State & Local Cannabis Taxes
Where Do Legal Cannabis Taxes Go?
Adult-use cannabis in Missouri carries a 6% state excise tax at retail, city cannabis taxes of 3%, plus state sales taxes.
Legal cannabis has become a dependable revenue stream for the state and its cities, and tax dollars generated are paying for concrete public priorities—from veterans’ health care and drug-treatment grants to local violence-prevention and neighborhood services.
Unlicensed, illegal black-market sellers siphon demand away from these public investments, avoid all cannabis taxes entirely, and undercut the transparent, accountable system voters approved in 2022.
In 2024 MO Legal Dispensaries Paid $245,000,000 in state and local tax revenue.
First, the Department of Cannabis Regulations’s operating costs and expungement expenses are covered. The remaining tax revenue is then equally split between these three agencies.
Missouri Veterans Commission (MVC) for veterans health care and medical services.
Missouri State Public Defender for legal assistance to low-income Missourians
Department of Health & Senior Services (DHSS) to fund grants for low-barrier, evidence-based drug addiction treatment, overdose prevention, and reintegration efforts like housing, job placement, and counseling.