There’s confusion over who can benefit from extra taxes on marijuana. A Missouri appeals court ruled local governments are not allowed to stack an additional 3% sales tax on pot sold in unincorporated parts of counties. That decision is not sitting well with leaders in St. Charles County, who are calling on the state Supreme Court to step in.
When Missouri votes legalized recreational marijuana, it allowed for local governments to benefit not only from sales tax, but even from an additional 3% tax.
"You and I pay taxes on our beer or, or bourbon and people felt if you’re going to smoke marijuana, you should contribute to the effort here,” said St. Charles County Executive Steve Ehlmann.
He says the county had big plans for the $1.4 million that have come in from marijuana taxes. Ehlmann wants that money to fund the additional school resource officers that were brought on from ARPA funds because that money will eventually run out. Only problem, an appeals judge ruled Monday the additional 3% tax that localities can receive does not apply to counties.
"Local governments was defined as, if it's an incorporated area, the city, town, or village the dispensary is located in and if it’s unincorporated, then the county, so not both…The places that are providing services to those dispensaries in incorporated areas are the cities, towns, or villages where they're located and they should be the ones that are able to get that tax revenue,” said John Payne, who served as the Campaign Manager for Legal Missouri.
"Almost all of the commercial property in the county is in the cities so those people, even though they may shop in the city, the extra tax on marijuana goes to the city. None of it goes to their part of the world and that's what as a county, that's the inconsistency here we were hoping would not occur…. A lot of other people might not have voted for it,” Ehlmann said.
This has been an ongoing debate ever since the weed sales started pouring in.
5 On Your Side will keep you posted as county leaders continue to fight for a piece of the pie.
You can read the judge's ruling below: