No override on veto featuring tax relief for marijuana businesses

As Missouri’s legislature convened for veto session on September 15, the prospect of a veto override of SB226 was grim.

The bill contains language which would allow Missouri’s legal marijuana businesses to deduct the expenses disallowed from their federal returns, bringing them in line with other businesses operating in the state. The language would have marked one of the most significant steps forward for marijuana businesses in Missouri since the legalization of medical marijuana.  The change in taxation could mean a difference of hundreds of thousands, if not millions of dollars for some operators. The legislation was passed in May but was vetoed by Gov. Mike Parson in July.

Despite a push from industry lobbyists and a rallying call from MoCannTrade, there was no override on the veto of SB226. In fact, there were no overrides on any measure in the legislature on Wednesday.

Sen. Andrew Koenig’s, R-Manchester, motion to override SB226 was offered and withdrawn.

As for the remainder of Parson’s vetoes, the House voted to override four of the Governor’s line-item vetoes on appropriation bills, but after four hours of debate in the Senate, the overrides failed.

Looking forward

While the lack of movement toward financial parity for marijuana businesses at both a state and federal level is disappointing, there is hope for next year in Missouri.

The marijuana-related language had no influence on the veto of SB226, the veto was instead related to other language on the bill concerning property tax and sales tax. With the pro-marijuana business language passing the House and Senate, and the Governor’s office showing no resistance to the marijuana industry-friendly language, the likelihood of successful legislation in Missouri next year is high.