Marijuana and money

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Joining other governments in St. Charles County, O’Fallon seeks to tax newly-approved-by-Missouri sales of “recreational” adult use marijuana.

At its Jan. 12 meeting, the O’Fallon City Council approved Bill No. 7520, sponsored by Mayor Bill Hennessy, regarding a proposed additional 3% sales tax on adult use marijuana sales in the city.

The vote was 7-0. Council members Lisa Thompson (Ward 2) and Jeff Kuehn (Ward 4) were absent/excused. Dave Hinman (Ward 1) had vacated his council seat Dec. 31, after winning the election for District 103 representative in the Missouri House.

Bill No. 7520 places a proposition on the ballot for the April 4 General Municipal Election to authorize the additional 3% tax.

Just prior to the vote, council member Deana Smith (Ward 1) emphasized, “This council is not imposing the tax. The voters will decide.”

On Nov. 8, 2021, Missouri voters approved Amendment 3 to the Missouri Constitution, making the sale of “recreational” marijuana legal to people at least 21 years of age. Those sales became legal as of Dec. 8.

However, currently the only sales permissible are by state-licensed medical marijuana dispensaries to those holding medical marijuana cards. The state still is working through applications for non-medical-marijuana dispensaries, with the first licenses estimated to be issued by or in February 2023.

The tax is authorized by the new provisions of Amendment 3. The ballot wording is taken directly from the provisions of the new Section 2.6 (5) of Article XIV.

The city already has adopted regulations regarding the sale of medical marijuana with appropriate safety and security provisions.

At this time, no estimates are available as to how much revenue this new tax would generate.

John is a news reporter covering the city of O’Fallon and St. Charles County government. He and his wife live in O’Fallon. They have a daughter, son-in-law, and two grandchildren, also in O’Fallon. He is happy his grandchildren now can beat him in golf.

 

John is a news reporter covering the city of O’Fallon and St. Charles County government. He and his wife live in O’Fallon. They have a daughter, son-in-law, and two grandchildren, also in O’Fallon. He is happy his grandchildren now can beat him in golf.

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