Two instances in Missouri – one headed to court docket in Could – search to stop some counties from “stacking the tax” of a hashish tax on prime of the one already paid for metropolis gross sales. These instances create a state of affairs the place hashish firms and their prospects are compelled to pay way more taxes than lawmakers initially thought.
Sadly, governments in hashish authorized states have imposed taxes which might be onerous. And in some instances, it’s not possible to conform until the enterprise comes out of pocket and pays considerably extra taxes than it collects from its prospects.
These authorities tax cuts have compelled authorized hashish firms to boost their costs to pay for the inflated taxes, making them much less aggressive and driving shoppers to the illicit market. Tax stacking additionally lowered the quantity of state and native taxes collected.
Modification 3
of Missouri Modification 3 legalized the sale of hashish to adults on November 8, 2022, authorizing a 6% grownup hashish tax with the choice for native governments to enact an extra 3% hashish tax.
Learn extra https://information.bloomberglaw.com/business-and-practice/cannabis-tax-stacking-harms-legal-sellers-and-drives-up-prices
