The Missouri Supreme Court’s ruling on July 22, 2025, in the case Robust Missouri Dispensary 3 LLC v. St. Louis County, et al. (Case No. SC100898) clarified that local governments cannot stack sales taxes on recreational marijuana sales in incorporated areas, overturning a lower court’s decision. The case, argued by Armstrong Teasdale attorneys Eric M. Walter and Brendan F. McGuire, Jr., centered on a Florissant-based dispensary that challenged the imposition of a 3% sales tax by both the city of Florissant and St. Louis County, in addition to the state’s 6% marijuana tax and standard retail sales taxes, resulting in a total tax rate of nearly 21%.
The Missouri Constitution’s Article XIV, Section 2, defines “local government” as a village, town, or city in incorporated areas, or a county in unincorporated areas. The court, in a 6-1 decision authored by Judge Mary Russell, ruled that only one local government—either the city or the county, depending on the dispensary’s location—can impose the additional 3% tax. This prohibits counties from taxing dispensaries in incorporated areas like Florissant, limiting the tax to the city’s 3%. Judge Zel M. Fischer dissented, arguing that the amendment’s language allows counties to tax within incorporated areas, citing the use of “and” in the definition of local government.
This landmark decision, described by Armstrong Teasdale as shaping Missouri’s cannabis tax structure, impacts over 70 areas statewide where both city and county taxes were applied, saving consumers an estimated $3 million monthly by eliminating double taxation. The ruling enhances affordability for legal cannabis, reducing incentives for illicit market purchases, and provides clarity for dispensaries in incorporated areas. Armstrong Teasdale’s Cannabis Law practice emphasized that counties must now reassess budgets reliant on these taxes, as they can only impose the 3% tax in unincorporated areas.