51黑料

JEFFERSON CITY 鈥� The Missouri Supreme Court ruled Tuesday that 51黑料 County and St. Charles County cannot add their own tax on the sale of marijuana on top of local municipal sales taxes.

In a 6-1 decision, the high court reversed a lower court鈥檚 2024 ruling allowing both Florissant and 51黑料 County to both impose a 3% sales tax on marijuana products.

鈥淭he counties鈥� ordinances are valid to the extent they impose a 3 percent sales tax on non-medical marijuana sold in unincorporated areas, but they cannot be enforced within incorporated cities, towns, and villages,鈥� Judge Mary Russell wrote for the majority.

At issue is a concept called 鈥渢ax stacking.鈥�

In April 2023, 65% of 51黑料 County voters approved collecting a 3% sales tax on marijuana sales; in St. Charles County, 72% did.

The aim of the counties was to scrape some money from an industry projected to generate $1.4 billion in sales annually.

But, a marijuana dispensary in Florissant sued 51黑料 County, accusing it of unconstitutionally collecting the tax when Florissant already was. The shop, identified in the suit as Robust Dispensary on Howdershell Road, argued the county is only allowed to collect the levy in unincorporated territory. St. Charles County later joined the suit.

The dispensary鈥檚 attorneys argued the term differentiates between municipalities and unincorporated county territory. Either could impose a tax within its borders, but not both.

51黑料 County Circuit Judge Brian May determined that if Robust鈥檚 interpretation of the law were accepted, it would lead to 鈥渁bsurd outcomes,鈥� because 鈥渁 municipality or city would essentially be given carte blanche to ignore any county ordinance or regulation, including those related to public health and safety wholly unrelated to the taxing issue.鈥�

But Russell said the plain language of the state constitution is unambiguous.

鈥淚n an incorporated area, the 鈥榣ocal government鈥� is an incorporated village, town, or city, and, in an unincorporated area, the 鈥榣ocal government鈥� is a county,鈥� she wrote.

The high court鈥檚 decision will mean a loss of millions of dollars in revenue affecting an estimated 70 local jurisdictions where both city and county governments are imposing the tax.

The Missouri Cannabis Trade Association, which represents the pot industry, hailed the ruling, saying it will save consumers $3 million in added taxes.

鈥淢issouri customers already pay their fair share, with sales tax revenue from cannabis in Missouri now tripling original state estimates. We applaud the Court for upholding the constitution and call on all jurisdictions and the Missouri Department of Revenue to implement this decision without delay so Missouri can keep leading the way,鈥� said Andrew Mullins, executive director of the trade group.

St. Charles County Executive Steve Ehlmann said the tax had been projected to generate $2 million annually.

鈥淚鈥檓 disappointed with the outcome, but I respect the court鈥檚 decision, and we will abide by it,鈥� Ehlmann said.

He said the decision will be hard to unwind because the marijuana legalization effort was done via a constitutional amendment approved by Missouri voters, rather than a change in state statutes.

鈥淥ne thing this shows is how we need to stop putting everything that comes along into the state constitution,鈥� Ehlmann said. 鈥淗ad this been just a regular law passed by voters, then the legislature could have come back and fixed the question of who can do the tax. But instead, we find ourselves bound by a final decision from the Missouri Supreme Court.鈥�

In a dissent, Supreme Court Judge Zel Fischer called the decision 鈥渁bsurd.鈥�

He said the state constitution clearly says a county is a 鈥渓ocal government鈥� in both incorporated and unincorporated areas.

鈥淎nd as a 鈥榣ocal government鈥� 鈥攔egardless of whether the area is incorporated and unincorporated 鈥� a county can impose a 3-percent sales tax on recreational marijuana,鈥� Fischer wrote.

鈥淏ecause the circuit court correctly determined that a county can impose an additional three percent sales tax in an incorporated area, I would affirm the circuit court鈥檚 judgment in all respects,鈥� Fischer added.