It has been just over a year since voters made recreational marijuana legal in Missouri, and the money is rolling in for growers, dispensaries and local and state governments which are now collecting taxes on the sales.
Since it was legalized for personal use for adults in February of 2023, recreational sales in Missouri have been impressive, topping $1.04 billion, according to MJBizDaily, more than the first-year sales of many other states, including Colorado and Illinois. When medical marijuana receipts are added, the total sales of marijuana in Missouri since legalization has surpassed $1.3 billion. Experts say those robust sales make Missouri’s cannabis market among the quickest to rise nationwide.
Those sales have provided a jolt to the Missouri economy and have created more than 14,000 jobs, according to MoCannTrade, an association of business owners.
For those 21 and over, possession of up to three ounces of marijuana is now legal in the state. Until the passage of Missouri Amendment 3 in 2022, possessing any marijuana could result in an arrest, heavy fines and even jail time. The new law is responsible for erasing convictions, and has led to the expungement of more than 100,000 court cases.
Government coffers have also benefited from legalization, with marijuana being taxed at the state, county and municipal levels. Franklin County Presiding Commissioner Tim Brinker told The Missourian last year that he expected the county to see a significant increase in tax revenue. “I’m not positive, but I’d imagine maybe a couple hundred thousand dollars,” he said. That prediction was not far off. Franklin County Auditor Angela Gibson said the county received $68,922 in 2023 marijuana tax receipts. The County started assessing a three percent sales tax on cannabis sales in October. Gibson said the county has collected $44,811 in taxes so far this year.
Washington City Administrator Darren Lamb said the city will collect $12,193 from January receipts at Washington’s only dispensary, Missouri Health and Wellness. That was the first month the city began receiving the proceeds of its three percent sales tax that was approved by voters last April. At three percent, that translates to roughly $406,464 in total sales for the dispensary that month.
Homegrown store
Located near the Missouri River on Highway 47, Missouri Health and Wellness is Washington’s only cannabis dispensary and one of more than 190 statewide. The company that owns the retail outlet also has locations in Sedalia, Jefferson City and Kirksville. Washington Manager Louis Swoboda says the store is just a normal business, like many others people frequent. “I would say the only difference from, say, an ice cream shop or a place where you’d order at the counter and they bring your food to you, is you have to check in first,” he said.
Upon entering the dispensary, customers approach a window where they are required to show a valid Missouri ID, Swoboda said. Then they wait their turn in a waiting room, much like in a doctor’s office, complete with couches and outdated magazines. “And then once it’s determined that you are able to shop, you come back to our sales floor, you order on a menu, your budtender gets it for you, then you just pay him, and go on your way,” said Swoboda.
Swoboda says the clientele is much the same as you’d see in any other store in town. “A lot of people who come here are normal people you would find at a retail store like a Walmart or something like that,” he said. Swoboda says contrary to the stereotypical image of pot smokers as zoned-out hippies, his clients are just regular folks. “My mind immediately goes to a sort of middle-aged, middle-class, sort of nine-to-fiver who comes in on their lunch break or after work just looking for it. We sell a lot of vaporizers, so those are really discreet, really easy to use. I think a lot of, you know, the working class prefers that because it’s on-the-go.”
The store doesn’t just sell the marijuana flower, which is the most potent part of the plant for smoking, but also cannabis-infused products like gummies, candy bars and hard candies; pre-rolled joints; vapes and CBD, an oil that doesn’t get people high, but is touted as a relaxant, sleep aid and treatment for certain seizure disorders. Swoboda says the flower is still their biggest seller, but not by much. Gummies are a close second, followed by vapes and the other products.
The people who work the counter are called “budtenders,” and come from all different backgrounds, Swoboda explained. “There’s a lot of people, just like the customers, from all walks of life. We have some who are the typical stoner who can tell you everything about the weed that they like, and then we’ve got people who are former bankers, former teachers, people who are just looking for a more laid-back, fun business. And we have a lot of people transitioning out of their careers to get into cannabis,” he said.
Before marijuana became legal, it was sold on the black market, which has been at least partially replaced by the dispensaries. But not completely, according to Swoboda. “There is still a thriving black market, and I didn’t realize it was thriving that much. There are still people who prefer not to purchase from a regulated dispensary. People don’t want to have to give their name to a business just to buy marijuana that’s technically federally illegal,” he said.
Feds vs. state
There is a disconnect between state and federal law when it comes to marijuana. On the federal level, it is still considered an illegal “schedule one” drug, in the same category as heroin and LSD. That distinction is why many of the first dispensaries that opened in states like Colorado and Washington avoided using the traditional banking system for fear of having their assets seized. Many of them had to store their proceeds in safes or facilities like self-storage units, where they would have to pay for private security to guard literal piles of cash.
Swoboda says those days are over, and he is not worried that the feds will seize his assets. “Absolutely not. The federal government has made it clear that they’re not interested in being involved in the state marijuana businesses. Our employees have W-2s, we pay taxes, it’s just a really normal business. I guess we’re existing in a gray area,” he noted.
Along with regulations regarding what they can sell and who they can sell it to, Missouri dispensaries are required to have very tight security. “We have multiple layers of security,” said Swoboda. “Our security is constantly being monitored. We keep a relationship with the local authorities so that we are able to be assisted as quickly as, say, the banks are downtown, things like that. We do function more like a bank.” The state requires almost every inch of the facility to be covered by security cameras and outdoor lighting. Automatic locks are required in case of a power outage.
Swoboda doesn’t mind those requirements. “It’s 100 percent a good idea; we’ve had suspicious behavior, but it didn’t turn out to be anything. We have to have, essentially, two cameras on every angle. Key cards you have to scan in, codes on doors, that’s all essentially state-required,” he said.
Business is good
Swoboda says the cannabis business in Washington is strong. “As far as people who want to buy recreational, we have seen a lot,” he said. While running the dispensary is in many ways like running any other business, there have been some surprises for Swoboda. “I would have to go back to the customer base,” he said. “I did not expect to see former teachers, former co-workers, pillars of the community, things like that. Also, just how easy it is. With all these state regulations, it’s a pretty intimidating business, so you know, if you keep it organized and keep the customer happy, you don’t really have a lot of issues. It’s just following rules and selling cannabis.”
Here is how Missouri marijuana laws affect you since the passage of Amendment 3:
-Anyone age 21 may legally possess up to three ounces of marijuana for personal use.
Individuals cannot legally sell marijuana to another person; only licensed dispensaries can sell it. Any sale of marijuana, especially in large amounts, will be dealt with harshly by the state.
-A 6 percent state sales tax is imposed on recreational cannabis purchases. State tax on medical marijuana is 4 percent. Franklin County adds another three percent, and the City of Washington imposes a three percent sales tax as well on recreational purchases.
-Residents can apply for a license to grow their own marijuana. Upon approval, a person can grow up to 18 plants on private property in an area that must be locked and secured and not visible to the general public.
-People may smoke marijuana in their own home, but not in public, unless a specific ordinance has been passed by a locality allowing it. This is sometimes done for special events such as concerts or festivals.
-It is not legal to drive while under the influence.
-An employer can still require an employee to take a drug test and can fire you for smoking marijuana, unless you have a medical marijuana card. An employer may not terminate, demote, or refuse to hire anyone based solely on their use of medicinal marijuana, except in rare cases.
-Any use of marijuana, even medical, on the job, can be cause for termination.
-Since marijuana remains illegal under federal law, transporting it across state lines is a felony.
-A landlord can prohibit a tennent from smoking marijuana in a rental property and can evict you for doing so. However, you cannot be evicted or discriminated against for possessing marijuana in a rental property, or using it in a manner other than smoking.