Prop 2: Recreational Marijuana Sales Tax

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VOTER INFORMATION: Tuesday, August 6, 2024

The NKC City Council has placed a question on the Tuesday, August 6, 2024 ballot of whether or not to impose an additional 3% sales tax on recreational marijuana.  The tax, if approved, would not apply to marijuana purchased for medical use.

BALLOT LANGUAGE: Proposition 2

Shall the City of North Kansas City, Missouri, impose an additional sales tax of three percent (3%) on the retail sale of adult use non-medical marijuana sold in the City of North Kansas City, Missouri?
YES    NO
 

BACKGROUND

In 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 aged 21 and over. Additionally, the amendment placed a 6% state sales tax on purchases of recreational marijuana and authorized local governments to add a 3% sales tax.

The City Council unanimously voted to put a question regarding the additional 3% sales tax on recreational marijuana on the ballot for the August 6 election.

PROP 2 EXPLAINED
Currently a sales tax of 7.725% is collected on all goods purchased in NKC.

Sales Tax Graphic

The State of Missouri currently collects an additional 6% sales tax on purchases of recreational marijuana, bringing the total taxes on recreational marijuana to 13.725%.

If voters approve Prop 2, NKC will collect an additional 3% sales tax on purchases of recreational marijuana, bringing the total taxes on recreational marijuana to 16.725%.

FREQUENTLY ASKED QUESTIONS

Would the 3% increase apply to medical marijuana purchases?

No. If voters approve Prop 2, the additional 3% sales tax would only apply to recreational marijuana purchases.

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

Any adult age 21 and over 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.

How much revenue would Prop 2 generate?

It is estimated that the City would collect between approximately $100,000 to $200,000 annually.

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 the City Council could fund programs such as public safety and social services initiatives.

When would the new sales tax rate become effective?

If voters approve of the Prop 2 ballot measure, the tax would go into effect Jan. 1, 2025.

When and where do I vote for Prop 2?

Prop 2 will be on the Tuesday, August 6, 2024 ballot. All North Kansas City residents vote at the NKC YMCA, from 6 a.m. to 7 p.m. For more information on what is on the August ballot, visit the Clay County Election Board’s website at www.voteclaycountymo.gov.