Marijuana Sales tax collection undecided
The Missouri Department of Revenue earlier this month notified counties of a change in their position regarding the local sales tax on recreational marijuana. The Department of Revenue announced they will collect a local county-wide sales tax of up to three percent on recreational marijuana in counties where voters have approved the tax.
On February 1st, the Taxation Division sent a letter to the Missouri Municipal League and the Missouri Association of Counties informing them that “a city and a county cannot ‘stack’ the additional up to 3% local tax on recreational marijuana sales.” But now there are separate intrepretations on how or if the tax can be stacked when passed in a county and a town.
Currently, and according to a letter from the Department of Revenue, at the moment, neither interpretation is absolute; however, the taxation portion of Article 14 does require that tax authorizations be submitted in a proposal “to the voters of the political subdivision, at a municipal, county or state general, primary or special election[.]” Like the existence of adult-use marijuana itself, the people decide if they want sales taxes on adult use marijuana sales. If necessary, courts are tasked with interpreting constitutional language.