Kennett sees financial boost from local marijuana tax revenue

KENNETT, Mo. - Looks like the city's marijuana tax is paying off.

A sales tax distribution deposit notice from the Missouri Dept. of Revenue received a few days ago by Kennett City Clerk Jan McElwrath totaled a payout of more than $25,000.

"We just were not positive if that total was for one month or two," McElwrath said Wednesday. "The tax was collected beginning in October.

"But the state has X amount of time to distribute the funds," she added. "We'll get it straightened out though, I'm sure."

A state revenue department representative assured The Delta Dunkin Democrat that whatever figure is included on any given month's statement is the total collected by the state and paid out to cities that particular month.

So, the deposit into Kennett's coffers recorded in December was $27,085.38.

A 3% local tax on sales of recreational marijuana is in place at Kennett, as the taxes are in most every other city where recreational cannabis is sold, according to the state.

That's in addition to the 6% state tax on sales authorized by Amendment 3, information on the state's website indicated.

However, this local tax does not apply to sales under the medical use laws passed in 2018, which are taxed at 4% by the state.

A recent ruling by the Missouri Eastern District Court of Appeals states that counties and municipalities cannot each impose a 3% sales tax on marijuana products if a municipality is already doing so, according to the state's website.