ST. CHARLES COUNTY, Mo. – Officials in St. Charles County will head to court with hopes of defending the right for Missouri counties to collect a 3% sales tax on recreational marijuana purchases.
St. Charles County announced the efforts Thursday in tandem with St. Louis County, which is facing a lawsuit from Florissant-based company Robust Missouri Dispensary.
The lawsuit accuses St. Louis County of unconstitutionally collecting a 3% sales tax on recreational marijuana purchases, while municipalities within the county also extend their rights to collect a 3% sales tax on such purchases.
By challenging the lawsuit, St. Charles and St. Louis counties are both claiming that based on the way that Missouri’s laws are written, they allow a county to impose a 3% sales tax on recreational marijuana purchases, even if cities within the county have already done so.
“We’re intervening in this St. Louis County suit because we think the marijuana industry is trying to twist the language and prevent a tax that the law allows,” says St. Charles County Executive Steve Ehlmann, via a news release.
After recreational marijuana was legalized in Missouri last year, the law allowed voters to approve sales taxes on recreational marijuana both county-wide and within local municipalities. St. Charles County voters approved a county-wide tax by a 72% vote last spring.
As for the court battle, St. Charles County is asserting that every Missouri county has a legal right to collect a sales tax on recreational marijuana sales, regardless of any potential municipal sales taxes.
A judge will be tasked to determine whether a 3% county-wide tax in Missouri, on top of any local towns that tax 3% is constitutional.
Some opponents, like the Missouri Cannabis Trade Association says dozens of state counties have been stacking their taxes. According to a previous FOX 2 report, buyers would pay less in taxes on recreational marijuana services if the lawsuit succeeds, but it some Missouri counties could miss out on up to $3 million a year.
