Recreational Marijuana Tax
City of Lebanon residents will have the opportunity to vote to tax recreational marijuana in the City of Lebanon during the April 4, 2023 municipal election. The voters shall be asked the following:
Question: Shall the City of Lebanon, Missouri, impose sales tax of three percent (3%) on all retail sales of adult use (recreational) marijuana sold in the City of Lebanon, Missouri for the purpose of providing funding for the Lebanon Police Department and drug abuse prevention?
Should this proposition pass, it would only apply to recreational marijuana with funds dedicated to drug abuse resistance education (DARE). The city sales tax rate will remain the same on all other purchases. Voters are asked to make the choice on the taxation following Missouri voters approving a constitutional amendment allowing sales of recreational marijuana at licensed facilities in November of 2022.
- Why are we considering this?
In November 2022, Missouri voters passed a constitutional amendment allowing the sale and use of marijuana for personal use for those ages 21 and over.
The state will charge a 6% tax on legal purchases of recreational marijuana. In addition, cities and counties have the option to charge a sales tax of up to 3% with voter approval.
- Who pays the tax?
Only people purchasing recreational marijuana in Lebanon at a state-licensed store would pay the tax. Currently Lebanon has only one licensed retailer.
- How would the city spend the revenue?
All revenues from this tax would be used to supplement the Lebanon Police Department's drug enforcement efforts and to fund DARE (Drug Abuse Resistance Education).
- Are sales of recreational marijuana underway?
Licensed dispensaries began selling recreational marijuana on Feb. 6, 2023.