Missouri voters approved Amendment 3 on Nov. 8, 2022 which legalizes recreational marijuana use in the state and city and county municipalities want their piece of the pie to be able to tax local sales.

The Mexico City Council members decided to let voters decide if the City of Mexico should impose a sales tax on retail sales of adult-use marijuana during their first meeting of 2023 on January 9.

The City of Mexico currently already collects two-percent general sales tax revenue from medical marijuana purchases. The Marijuana Amendment authorizes cities, after approval by voters, to impose an additional three-percent sales tax on retail sales of adult-use marijuana. The question to impose the tax may be placed on a ballot for general, primary or special election. The first opportunity for cities to impose the additional adult-use marijuana sales tax is the April 2023 election must be done by January 24, 2023.

The ballot question would read, Should a city impose the three-percent local sales tax, the sales tax is collected by the Department of Revenue like other sales tax imposed by cities? The Missouri Municipal League estimates $150,00 in annual revenue from a three percent local option tax per comprehensive dispensary within city limits.

"If the voters approve the tax, the money would go to the general fund. Since Mexico Public Safety will have additional responsibilities related to this issue, funds would be used for Mexico Public Safety Department purposes," said Mexico City Manager, Bruce Slagle.

Audrain County will also ask voters to approve a sales tax on retail sales of adult-use marijuana during the April 4, 2023 general election.

"If this is approved by voters, we have not designated a use for the funds," said Audrain County Presiding Commissioner Alan Winders. "Marijuana will have costs in the community. Our costs continue to go up and this is an opportunity to raise additional revenue. The money will go into the general revenue fund and the Commission will make a decision on where the money goes," said Winders.

The Missouri Municipalities League has also prepared a sample ordinance for cities wishing to impose the local option Marijuana Tax.  Other city governments that have also approved the question for the April, 4 election include Martinsburg, and Vandalia.