KANSAS CITY, Mo. — With the legalization of marijuana in Missouri, thousands of Kansas City-area voters will now decide if their city can tax sales of the drug.
Leaders in multiple cities are planning a 3% local tax on recreational marijuana, but first voters will weigh in.
Three percent is the highest city sales tax allowed under Missouri’s Amendment 3, which legalized recreational marijuana use for those 21 and older.
Separately, the state will also charge a 6% sales tax on all recreational marijuana purchases.
The local tax will not apply to medical marijuana purchases, and the state will keep its 4% tax rate for anyone with a medical marijuana card.
But in order for any city to collect a new tax, voters have to approve it.
These cities have already approved putting a 3% recreational marijuana sales tax on the April 4 ballot:
The Kansas City Council approved plans to implement a 3% local sales tax on recreational marijuana. Now it will be up to voters.
Over five years, Kansas City expects $300 million worth of marijuana to be sold within its borders, and leaders estimate the local tax could eventually add up to $10 million a year in revenue for Kansas City.
“This 3% allows us to invest in neighborhood quality of life — in trash pick-up, in homelessness prevention and, importantly, violence prevention — three things that we underfund regularly,” Kansas City Mayor Quinton Lucas previously told FOX4.
The local marijuana sales tax will now appear as a ballot question in the April 4 municipal election for Kansas City voters.
Raytown was the first city in the Kansas City area to take a major step toward taxing recreational marijuana locally.
In early January, city leaders approved ballot language, asking voters to approve a 3% marijuana tax. It will read:
“Shall the city of Raytown impose an additional sales tax of three percent (3%) on the retail sale of adult use non-medicinal marijuana? Notes: The tax collected under this provision would not apply to medical marijuana.”
If voters approve the tax, Raytown estimates the city could see about $60,000 of annual revenue. There’s currently only one dispensary within city limits: From The Earth on Highway 350.
If approved, that tax revenue would go to the general fund, much like taxes on alcohol and tobacco.
Liberty voters will also get to decide if there should be an additional tax on recreational marijuana sales in the city.
Members of the city council approved putting the issue on the April 4 ballot. If approved, there would be an additional 3% local tax on recreational marijuana sales.
Money raised from the municipal tax would be used to pay for different public safety issues, according to city council members.
According to the Missouri Department of Health and Senior Services, there is only one licensed dispensary in Liberty’s city limits.
The Grandview City Council is also asking voters to approve an additional 3% city sales tax on recreational marijuana.
The Grandview Board of Alderman approved the local marijuana tax, and it will now appear on the April 4 ballot.
A city spokesperson said the tax revenue would go to the general fund.
Belton city leaders also recently approved plans to impose a 3% local marijuana sales tax. The issue will now head to the April 4 ballot for voters to weigh in.
The ballot question will read: “Shall the City of Belton, Missouri, impose a sales tax of three percent on all tangible personal property retail sales of adult use, non-medical marijuana sold in the City of Belton, Missouri?”
If approved, council members have previously said the tax revenue could then toward funding for issues like public safety.
These cities are working on plans to put a marijuana sales tax question on the ballot, but city leaders have not approved anything yet:
Independence leaders are considering a 3% marijuana tax, and city council members could vote on the issue soon.
Council members have discussed the issue several times over the past month and plan to hold a second reading on the ballot issue at their Tuesday, Jan. 17, meeting.
If the council approves, it will still have to go before voters in April.
The city estimates the tax could bring in anywhere from $270,000 to $615,000 in revenue. City leaders said the funds could be dedicated to public safety or neighborhood services, but that’s not official yet.
The Blue Springs City Council is weighing a 3% sales tax on recreational marijuana sales.
The council will discuss the plan at its next meeting on Tuesday, Jan. 17. If approved, it will go before voters on the April 4 ballot.
The proposed ballot question would read: “Shall the City of Blue Springs impose an additional sales tax of three percent (3%) on the retail sale of adult use non-medicinal marijuana?”
The ordinance for the marijuana tax does not designate what the tax revenue would go toward.
Blue Springs leaders are also considering adding marijuana to the current indoor smoking prohibition on tobacco.
Lee’s Summit leaders started their discussion on a 3% marijuana tax last month and could take a final vote on the issue in a few days.
Council members did a first reading of the proposed ordinance and ballot language at their last meeting on Jan. 10 and will hold a second reading and vote on Jan. 17.
If council members approve, the ballot language would read: “Shall the city of Lee’s Summit, Missouri, impose a city sales tax of three percent (3%) on all retail sales of adult use marijuana sold in the city of Lee’s Summit, Missouri?”
Lee’s Summit currently only has two dispensaries within city limits.
At their Jan. 10 meeting, city leaders didn’t have an estimate on how much tax revenue the city would see and have not designated what the funds would go toward.
North Kansas City
The North Kansas City Council will vote at its Jan. 17 meeting whether to send a marijuana sales tax to voters in April.
If the council and voters approve, the city would tax recreational marijuana sales at 3%.
The proposed ballot language would read: “Shall the City of North Kansas City, Missouri, impose an additional sales tax of three percent (3%) on the retail sale of adult use non-medical marijuana sold in the City of North Kansas City, Missouri?”