Nixa Voters to Decide Proposed Tax on Marijuana
Nixa Voters to Decide Proposed Tax on Marijuana
January 26, 2024
On April 2, 2024, Nixa voters will decide whether the City of Nixa should collect a proposed 3% sales tax on non-medical sales of marijuana.
Nixa City Council decided on Monday January 22, 2024 to send the issue to voters.
The question which voters will see on the ballot will be phrased as follows:
Shall the City of Nixa, Missouri, impose an additional sales tax of three percent (3%) on all tangible personal property retail sales of non-medical adult use marijuana sold within the City?
Yes or No?
A “no” vote means the city would not be able to collect any additional sales tax on sales of marijuana inside Nixa city limits. However, Christian County would be able to continue to collect its additional 3% sales tax on sales of non-medical marijuana from dispensaries located inside Nixa city limits.
A “yes” vote means the city would begin collecting an additional 3% sales tax on sales of marijuana in addition to the city, county, and state sales taxes.
According to Missouri law, the additional sales tax may not be applied to sales of medical marijuana, however, medical marijuana will continue to be subject to the other sales taxes levied by the state, county and city.
Vote April 2nd!
Frequently Asked Questions (FAQ)
Q: Why are adult use non-medical (recreational) marijuana sales allowed at all?
A: In November 2022, Missouri voters passed Amendment 3 to the state constitution which allows the sale of recreational marijuana to adults over the age of 21. In November of 2018, Missouri voters passed Amendment 2 to the state constitution which allows the sale of medical marijuana in Missouri. Whether this proposed tax is approved or not, it will remain illegal to sell any marijuana products to people under age of 21 in Missouri.
Q: Why not tax recreational marijuana at a higher or lower rate?
A: 3% is the most the state allows cities to levy as an additional sales tax on non-medical marijuana. This proposed tax is the highest possible sales tax on recreational marijuana that the state will allow a city to impose. All Missouri cities which have passed a tax on recreational marijuana sales have done so at the maximum 3% rate.
Q: Why is this proposed tax not applied to medical marijuana?
A: According to Missouri law, the additional sales tax may not be applied to sales of medical marijuana, however, medical marijuana will continue to be subject to the other sales taxes levied by the state, county and city.
Q: How would the city use these tax revenues?
A: If approved by voters, this tax would contribute revenue to the city’s general fund. The largest expense to the general fund is the operations of the Nixa Police Department (largest portion of which is Police Department salaries). The Parks & Recreation department and the city’s administrative support departments expenditures are also paid from the general fund. City council have decided not to dedicate these revenues to a specific purpose as the amount of revenue is not currently anticipated to be significant enough to afford the cost of adding additional staff or building large capital improvement projects.
Q: How much revenue is anticipated to be generated by the tax if approved?
A: In short, we don’t anticipate the revenue would be enough to fully afford additional full time staff positions, and it will likely take several years of saving this revenue in order to afford even a small capital improvement project in the low hundreds of thousands of dollars.
Q: What surrounding communities have already adopted a marijuana sales tax?
A: The following area cities are among the 187 which have imposed a marijuana sales tax: Ava, Branson, Branson West, Buffalo, Forsyth, Hollister, Joplin, Lebanon, Marionville, Monett, Mount Vernon, Ozark, Springfield, Webb City, and West Plains. Christian County also imposed an adult use non-medical marijuana sales tax in 2023.
