Missouri Supreme Court Hears Case on Local Marijuana Tax Stacking Affecting 70+ Areas
Missouri Supreme Court Hears Case on Local Marijuana Tax Stacking Affecting 70+ Areas

Missouri Supreme Court Hears Case on Local Marijuana Tax Stacking Affecting 70+ Areas

News summary

The Missouri Supreme Court is deliberating on whether both city and county governments can impose separate 3% sales taxes on recreational marijuana sales in the same geographic areas, a practice known as tax stacking. The dispute centers on Robust Missouri 3 LLC, a Florissant dispensary, which argues that the state constitution permits only one local government to levy the 3% tax, making dual taxation by cities and counties unconstitutional. A Missouri appellate court previously sided with Robust, ruling that the constitution’s language is clear that only one local government may impose this tax. However, St. Louis County and St. Charles County officials contend that the constitutional amendment allows both municipalities and counties to tax simultaneously, as they coexist over the same territory. The case has broader implications for over 70 areas in Missouri where such tax stacking has been practiced, and judges have raised concerns about the potential regulatory conflicts and public policy outcomes if Robust's interpretation is upheld. The court's final decision will clarify the limits of local taxation authority under Missouri's marijuana legalization amendment.

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