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Posted on: March 13, 2023

[ARCHIVED] Fast Facts about a Marijuana Tax (Question 1)

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Official ballot language

QUESTION 1

Shall the City of Harrisonville Missouri, impose a sales tax of three percent (3%) on all the retail sales of nonmedicinal, adult use marijuana sold in the City of Harrisonville, Missouri? 

□ YES

□ NO

If you are in favor of the question, place an “X” in the box opposite “YES”. If you are opposed to the question, place an “X” in the box opposite “NO”.


BACKGROUND INFORMATION

During the statewide election of November 2022, Missouri voters approved an amendment to the state’s constitution, which made the use and sale of recreational (adult use) marijuana legal in Missouri for adults over the age of 21.

Additionally, the amendment placed a 6% state sales tax on purchases of recreational marijuana and authorized local governments to add a 3% sales tax.

At its Jan. 17, 2023, meeting, the Harrisonville Board of Aldermen unanimously voted to put a question regarding the additional 3% sales tax on recreational marijuana on the ballot for the April 4, municipal elections.

Currently, 105 have a recreational marijuana sales tax question on the April ballot, including Kansas City, Joplin and Jefferson City.

Locally, Cass County has its own recreational marijuana sales tax question on the April ballot, as do several municipalities within the county, including Archie, Belton, Peculiar and Raymore.Banner 2

QUESTION 1 EXPLAINED City funds chart

Currently a sales tax of 8.225% is collected on all goods purchased in the City of Harrisonville. 

The State of Missouri currently collects an additional 6% sales tax on purchases of recreational marijuana. 

If voters approve Question 1, the City of Harrisonville will collect an additional 3% sales tax on purchases of recreational marijuana made within the City.

The funds collected from the tax would be allocated to the City’s general fund. 

The general fund is then further broken down into Public Safety, Administrative support, Public Works improvements, and Community Development.

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WHAT WOULD QUESTION 1 MEAN FOR HARRISONVILLE RESIDENTS? Tax Revenue graph

Recreational (adult use) marijuana has only been legal in Missouri for a short time, and it is difficult to accurately estimate how much annual revenue the tax would generate. 

The chart to the right provides three estimates for how much revenue the City would collect from the tax should voters to approve it.  

It is estimated that the City would collect between approximately $175,000 and $375,000 in the first year of the tax.

As stated in the previous section, the funds collected from the recreational marijuana sales tax would be allocated to the City’s general fund and could fund public safety, public works and community development initiatives.   

public safety iconpublic works icon           community development icon


FREQUENTLY ASKED QUESTIONS

How many dispensaries or marijuana stores are in Harrisonville?

Harrisonville currently has one comprehensive facility selling medicinal marijuana and recreational marijuana.

When will recreational marijuana sales be legal?

Licensed dispensaries approved for retail sales began selling recreational marijuana in Missouri on February 3rd, 2023. 

Who pays the recreational marijuana sales tax?

Only people purchasing recreational marijuana in Harrisonville at a state-licensed store would pay the 3% city sales tax. 

Does Cass County also have its own recreational marijuana sales tax question on the April 4 ballot?

Yes. Cass County has also placed its own recreational marijuana sales tax question on the April ballot. That means Harrisonville residents will see two recreational marijuana questions on the ballot, one for Cass County, and one for the City of Harrisonville.

Both questions ask voters whether they approve of an additional 3% sales tax on recreational marijuana.

If voters approve Question 1, by what percentage will purchases of recreational marijuana be taxed?

Currently, a sales tax of 8.225% is collected on all goods purchased in – or for delivery to – the City of Harrisonville. 

Of that 8.225%, 2.375% is collected by the City of Harrisonville, while 4.225% is collected by the State of Missouri and 1.625% is collected by Cass County.

The state collects an additional 6% on purchases of recreational marijuana in Missouri. 

If voters approve Prop 1, the City of Harrisonville would collect an additional 3% sales tax on purchases of recreational marijuana.

Would the 3% increase apply to marijuana purchased for medical use?

No. If voters approve Prop 1, the additional 3% sales tax would only apply to marijuana purchased for recreational use.

How will marijuana dispensaries determine whether a purchase is for medical or recreational use?

Any adult over the age of 21 can purchase recreational marijuana from a licensed vendor. Only those with a medical marijuana ID card or caregiver ID card can purchase marijuana for medical purposes.

What would the City do with the revenue generated from the tax?

The funds collected from the recreational marijuana sales tax would be allocated to the City’s general fund and could fund public safety, public works and community development initiatives.  


ADDITIONAL DOCUMENTS

Jan. 17, 2023 Board of Aldermen meeting agenda

Ordinance 3624

Paid for by the City of Harrisonville, Missouri. Brad Ratliff, City Administrator | 300 E. Pearl, P.O. Box 367, Harrisonville, MO 64701.

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