Cassville ballot measure would send revenue to general fund

The city of Cassville is proposing an adult-use marijuana sales tax in April, aiming to tap into a revenue stream previously unavailable in spite of its location.

In October, the city approved annexing the Cassville Dispensary, located at 15335 Hwy. 76, at the business’ request due to utility needs. The annexation means in about February, the city of Cassville will begin collecting its current 2.375% in total sales taxes — 1% for general revenue, 0.5% for capital improvements, 0.5% for stormwater and parks, and a 0.375% (3/8ths) for transportation — and the city is hoping voters will approve a measure in April to impose another 3% on adult-use marijuana sales only.

The ballot language reads: “Shall the City of Cassville, Missouri impose a sales tax of three percent (3%) on all retail sales of adult use marijuana sold in the City of Cassville, Missouri?”

The measure does not apply to medical marijuana, which has a 4% state tax applied. The state also taxes adult-use marijuana at 6%.

Richard Asbill, Cassville city administrator, said revenue from the tax, if passed by a simple majority in the April 8, 2025, Municipal Election, will be deposited into the city’s general fund.

“The reason for this is it gives us the most options for spending it on public safety, parks and recreation, or transportation,” Asbill said. “Right now, 85% of the police department funds come out of the general fund.”

Charlea Estes-Jones, general manager of Cassville Dispensary, said she estimates the city will collect about $140,000 in revenue from existing sales taxes, as well as near $150,000 in revenue if a 3% adult-use tax is passed.

Asbill said the intent will be to use incoming funds — potentially $280,000-$300,000 total — to check off existing needs on the five-year plan, with all departments treated equally.

“We intend to invest in existing needs because we have projects planned we wouldn’t be able to get to for a couple of years that we might could do sooner. We will go by the highest priorities on the five-year plan.”

Estes-Jones said the Dispensary elected to annex due to sewer issues with the business’ septic system, which had few feasible repair options.

“We are doing this as a pragmatic way to connect to the city’s sewer, and to do that, you have to be annexed,” she said. “We also appreciate having the ability to show our value to the city.”

For the Dispensary’s patients and customers, Estes-Jones said the impact will be minimal. The city sales taxes apply to medical and adult-use, and the additional 3% would be levied on adult-use only.

“Our new ownership engaged in a discussion about it because we didn’t want to make a bad decision for our patients and customers,” she said. “We feel it does not hinder them enough for us to annex and do not think the tax rate change is enough to affect them.”

Estes-Jones estimated about $400 per day in additional taxes, which split among the average 275 buyers would amount to about $1.50 extra per patient or customer.

While an approval of the proposed ballot measure for the city of Cassville would impose a new tax, it may also negate an equal one per a Nov. 12 ruling by the Missouri Court of Appeals Eastern District. In the case of Robust Missouri Dispensary 3, LLC v. St. Louis County, Missouri, ET. AL., the 3% tax may only be levied by a single local government. Barry County passed the tax in April 2023 and began collections in November 2023. Estes-Jones said the tax amounted to about $150,000 in revenue annually.

The Court of Appeals overruled a lower court’s decision that allowed the city of Florissant and St. Louis County to both impose 3% taxes. Judge John Torbitzky ruled the language in the constitution is unambiguous, allowing only one local government to impose the additional tax on adult-use marijuana.

A similar appeals case is also being adjudicated in Buchanan County.