FLORISSANT, Mo. – A Florissant dispensary’s lawsuit is pushing the Missouri Supreme Court to decide whether incorporated cities and counties may both impose a 3% marijuana sales tax under the state constitution.

The challenge comes Florissant-based dispensary Robust Missouri 3 LLC, which argues the state’s marijuana amendment permits either a city or a county to levy a local sales tax on recreational marijuana purchases, but not both in the same area.

The Missouri Supreme Court heard arguments Tuesday, per state records. A ruling could have significant financial implications and bring clarity to hoe marijuana tax authority is interpreted across the state.

Article XIV of the Missouri Constitution explicitly states, in connection with marijuana taxing: “”Local government” means, in the case of an incorporated area, a village, town, or city and, in the case of an unincorporated area, a county.”

According to Missouri Department of Revenue data, adult-use marijuana purchases in Florissant are currently subject to a total sales rate of of 20.988%, including a 3% sales tax imposed by both the City of Florissant and St. Louis County.

In November, a Missouri court of Appeals panel died with the dispensary, finding the amendment’s wording unambiguously bars dual taxation for a city and county in the same location. That decision reversed a lower court ruling an led to the case’s transfer to the Missouri Supreme Court.

Missouri’s constitutional amendment legalizing recreational marijuana sales took effect in December 2022. Since then, St. Louis County and several of its incorporated municipalities, including the City of Florissant, have enacted their own 3% local sales taxes on adult-use marijuana, as permitted under the amendment.

The Missouri Cannabis Trade Association estimates that the state’s cannabis industry generates $241 million in sales tax revenue annually for state and local governments.