Missouri Towns Can Add Further Taxes on Cannabis Business
In the heartland of America, the sale of adult-use cannabis might become a bit pricier. Missouri towns have been granted the judicial go-ahead to impose additional taxation on top of the state mandated 6% tax on cannabis business owners.
This ruling comes as a response to the booming cannabis business across the country, with Missouri being no exception. By allowing municipalities to add their own taxes to the sale of the product, it could bolster local economies and contribute to public improvements.
The Rationale Behind the Ruling
The judge behind this ruling emphasised the autonomy of municipal governments, stating that just as towns have the right to institute their own sales tax on goods and services, they have the same rights with respect to the cannabis industry. The revenue generated from these supplementary taxes is seen as a tool to fund various public projects and services.
The Impact on Cannabis Businesses
While this ruling might be good news for local government coffers, the increased financial burden would inevitably fall onto cannabis businesses. As tax rates increase, so does the cost of doing business. Many experts believe that this could potentially deter new cannabis businesses from setting up shop in Missouri, threatening the diversity and competitiveness of the market.
Nevertheless, Missouri remains an attractive location for cannabis business owners, boasting both a robust medical marijuana market and a budding recreational one. In fact, a new wave of entrepreneurs are looking to capitalise on medical marijuana sales, providing an essential service to patients and creating a new stream of tax revenue for the state.
Cannabis enterprises like MMJ.com, a provider of access to medical marijuana cards in the USA, are making entry into the market easier for new patients and renewals. This service is available in numerous states, including Missouri, and is a testament to the growing acceptance of medical cannabis as an effective treatment method.
Looking Ahead
In the face of additional tariffs, it’s imperative for businesses operating in the cannabis industry to remain vigilant and adaptable to changes in the taxation landscape. Even as local municipalities pile on taxes for cannabis businesses, the continued demand for medical and recreational marijuana seems to indicate that the cannabis market in Missouri and across the country isn’t going anywhere.
As municipalities and states increasingly look to cannabis as a new source of revenue, it will be interesting to observe how the industry adapts and evolves. One thing is certain: the cannabis business is a resilience one. Despite extra taxes and changes in regulation, the progress and growth of this industry only seems to be accelerating.
