In 2018 and 2022, MO voters legalized marijuana, creating industry regulations and taxes to support public programs.
Marijuana tax revenues fund state oversight and public programs, though annual collections exceed distributions.
Marijuana-related arrests and seizures decreased after legalization while adult and student use rates stayed the same.
The MO marijuana industry was established through two voter-approved constitutional amendments (MO Constitution Art. XIV). Section 1 permits medical marijuana, and section 2 permits adult-use sales. All marijuana in MO must be grown, manufactured, and sold within the state (Controlled Substances Act, MO Constitution Art. XIV). The Division of Cannabis Regulation (DCR) was created to establish and enforce industry safety rules for Missouri’s 405 active operating licenses (DCR 2025, MO Constitution Art. XIV).
Medical marijuana sales are taxed at 4% and adult-use sales at 6%, plus any local taxes of up to 3% (MO Constitution). Between February 2023 and June 2025, the industry recorded about $1.3 billion in sales (DCR 2026, Missouri Department of Revenue (DOR) 2025). These transactions generated $152 million in tax revenue for the state to fund DCR operations and designated public programs, and $104 million for local governments (DCR 2026 ,DHSS 2024, DOR 2024, DHSS 2023).
In Fiscal Year (FY) 2025, MO collected $88 million in marijuana taxes (DOR 2025). Adult-use tax funds must first be allocated to DCR operation costs ($32 million in 2025), followed by the reimbursement of expenses associated with marijuana-related legal record expungements ($4 million) (DCR 2025, HB 2012 2024, MO Constitution Art. XIV, MO Senate 2024).
The remaining $115 million in was divided among three mandated program beneficiaries (FY 2025 appropriations reported, HB 2010 2024, Figure 1). These included $47 million for state veterans' homes and health services, $52 million for the Public Defender System to address staffing shortages and case backlogs, and $17 million for mental health and addiction treatment. While the Constitution requires an equal split of available revenue among these programs, the specific annual appropriation amount varies (MO Constitution Art. XIV). The legislature may reduce annual appropriations if the previous year’s funds were not completely used (HB 2010 2024).
By the end of FY 2025, distributions to all beneficiaries totaled $42 million. This resulted in an $89 million net surplus for FY 2025 and added to an unspent carryover from previous years, producing a combined balance of $110 million (Office of the State Treasurer 2025, Figure 1). These funds cannot be transferred to the state’s general revenue fund (MO Constitution Art. XIV).
Figure 1. MO Marijuana Tax Revenue, Authorized Spending, and Actual Distribution (Fiscal Year 2025). Total Available bar is the total cash pool of $172 million, $88 million in new FY 2025 tax revenue added to an $84 million carryover balance from previous years. The Authorized Spending bar is the legislature’s approved $152 million spending limits for programs, including $32 million for DCR Operations, $4 million reimbursement for expungement costs, $47 million for Veterans Services, $52 million for the Public Defender System, and $17 million for the Department of Mental Health. Actual Distributed bar shows actual $42 million disbursement from the state treasury, including $32 million to DCR Operations, combined $6 million to beneficiaries, and $4 million reimbursement to state courts for expungements. The $110 million gap represents budgeted but unused money in FY 2025, leaving an $89 million balance in constitutionally protected tax accounts.
The transition to a legal marijuana market supports over 400 business licenses and 172 state regulatory positions (DCR 2025). After legalization, marijuana-related arrests decreased from 43% of total arrests in 2022, to 9% in 2023 (Missouri Cannabis Information 2025). Arrests for marijuana possession dropped from about 9,000 in 2022 to around 1,000 in 2023. Statewide overall drug-related crime reports declined from 38,000 in 2021 to 17,500 in 2025 (Missouri State Highway Patrol (MSHP) 2021, MSHP 2025). During this same period, the share of marijuana seizures relative to all drug seizures decreased from 43% to 21%.
About 1.1 million MO adults, or one in five, reported using marijuana in the past year, an increase of around 10% since legalization (DMH 2025). Use among MO college students has remained stable at about one in three before and after legalization (Missouri Partners in Prevention (PIP) 2025). Half of these students purchased cannabis from a licensed dispensary, while 6% used a state-issued medical card.
Missourians seeking substance use treatment identify marijuana as the second most common substance of concern after alcohol (DMH 2025). Among college students who use cannabis, nearly 40% expressed interest in reducing their usage or quitting, a trend that has remained consistent since the legalization of adult-use marijuana (PIP 2025).
References
21 U.S.C. § 801 et seq. https://uscode.house.gov/view.xhtml?path=/prelim@title21/chapter13&edition=prelim
Division of Cannabis Regulation (DCR) (2026) Data and Reports. Missouri Department of Health and Senior Services (MODHSS). https://health.mo.gov/safety/cannabis/stats.php
Division of Cannabis Regulation (DCR) (2025) Chief Equity Officer 2025 Activity Report. Missouri Department of Health and Senior Services (MODHSS). https://health.mo.gov/safety/cannabis/pdf/ceo-activity-report-2025-ada.pdf
HB 2010, 102nd General Assembly, 2nd Regular Session (MO 2024). https://archive.house.mo.gov/Bill.aspx?year=2023&code=R
HB 2012, 102nd General Assembly, 2nd Regular Session (MO 2024). https://archive.house.mo.gov/Bill.aspx?year=2023&code=R
Missouri Cannabis Information (2025) Missouri Cannabis Arrests. https://missouristatecannabis.org/laws/arrests
Missouri Constitution, Article XIV (2022) Marijuana Use and Regulation. https://revisor.mo.gov/main/ViewChapter.aspx?chapter=XIV&constit=y
Missouri Department of Health and Senior Services (DHSS) (2023) 2023 Missouri Medical and Adult-Use Cannabis Annual Report. https://health.mo.gov/safety/cannabis/pdf/2023-medical-and-adult-use-annual-report.pdf
Missouri Department of Health and Senior Services (DHSS) (2024). 2024 Medical and Adult-Use Cannabis Annual Report. https://health.mo.gov/safety/cannabis/pdf/2024-medical-and-adult-use-annual-report.pdf
Missouri Department of Mental Health (DMH) (2025) Annual Data Report on Missouri’s Substance Use and Mental Health – 31st Edition. https://dmh.mo.gov/sites/dmh/files/media/pdf/2026/03/2025-annual-report-part1_2.pdf
Missouri Department of Revenue (DOR) (2024) Financial and Statistical Report Fiscal Year 2024. https://dor.mo.gov/revenue-annual-financial-report/documents/financialstatreport24.pdf
Missouri Department of Revenue (DOR) (2025) Financial and Statistical Report Fiscal Year 2025. https://dor.mo.gov/revenue-annual-financial-report/documents/financialstatreport25.pdf
Missouri Partners in Prevention (2025) At A Glance: Substance Use – Cannabis. https://www.mopip.org/pip/wp-content/uploads/2025/10/Cannabis_AtaGlance_2025MACHB.pdf
Missouri Senate (2024) Annual Fiscal Report (Red Book): Fiscal Year 2025. https://www.senate.mo.gov/24info/2024redbook.pdf
Missouri State Auditor (2025) Sales, Use, and Marijuana Taxes. Department of Revenue Report Number 2025-013. https://auditor.mo.gov/AuditReport/CitzSummary?id=1059
Missouri State Highway Patrol Criminal Justice Information Services (2021) Drug and Alcohol Violations 2021. https://showmecrime.mo.gov/CrimeReporting/CrimeReportingTOPS.html
Missouri State Highway Patrol Criminal Justice Information Services (2025) Drug and Alcohol Violations 2025. https://showmecrime.mo.gov/CrimeReporting/CrimeReportingTOPS.html
Office of Administration (2025) State of Missouri Annual Comprehensive Financial Report. https://acct.oa.mo.gov/media/report/annual-comprehensive-financial-report-fiscal-year-ended-june-30-2025
Office of the State Treasurer (2025) Fiscal Year End Fund Activity. https://treasurer.mo.gov/bank/FundReport/2025/2025%20-%20FiscalYearEndFunds.pdf
