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Recreational marijuana tax collections lagging in St. Louis

A dispensary employee loads a bag of cannabis for a customer.
Will Bauer
/
St. Louis Public Radio
St. Louis budget officials say sales tax revenue on recreational marijuana, like the product being sold at Greenlight Dispensary in south St. Louis in 2023, above, is lagging behind projections for the current fiscal year.

The City of St. Louis is seeing lower-than-expected revenue from the sale of recreational marijuana.

Officials had projected the city would raise $2.4 million, or about $200,000 a month, from the 3% tax in the current fiscal year. But Budget Director Paul Payne told a meeting of the Board of Aldermen's appropriations committee on Wednesday that the numbers are lagging.

“I don’t think we’re going to quite make the $2.4 [million], but it depends what the future months hold. Through the first quarter, we had been trailing, although last month saw an increased amount.”

Legislation on the mayor’s desk would allow dispensaries to stay open until 10 p.m. to generate more sales and also help them compete better with other areas. Current regulations require them to close at 8 p.m. daily.

Voters approved the 3% tax in 2023. The city said at the time it intended to use the revenue generated to “address historic inequalities.”

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Rachel is the justice correspondent at St. Louis Public Radio.