ST. CHARLES COUNTY, Mo. – After an appellate court ruled St. Charles and St. Louis counties could not stack their own marijuana sales tax on top of municipal sales taxes, the top elected official in St. Charles County said they’ll take the fight to the state supreme court.
“We won at the circuit court level,” St. Charles County Executive Steve Ehlmann said. “The marijuana people won at the court of appeals level. Hopefully, the Missouri Supreme Court will take this and be the final arbiter. I’ve talked to (St. Louis County Executive) Sam (Page), and we agree it needs to be appealed.”
The Missouri Court of Appeals Eastern District ruled overturned St. Louis County Circuit Judge Brian May’s decision that counties are “constitutionally authorized to enact a retail tax.”
Florissant business Robust Dispensary sued St. Louis County, accusing it of tax stacking. The City of Florissant has a sales tax on marijuana sales.
“On alcohol, you have a state and federal excise tax that’s paid,” Ehlmann said. “Why wouldn’t you have an additional city and county tax when it comes to marijuana?”
The marijuana industry said overtaxing individuals leads to an increase in illicit pot sales and less money for veterans and substance abuse programs.
In April 2023, St. Louis County voters approved a 3% tax on marijuana by 65%. In St. Charles County, 72% of voters passed a similar measure.
“The people voted for it because they thought marijuana users should be taxed the same as alcohol users,” Ehlmann said. “Instead of bringing it up early, they waited until it was all done, and we’ve collected $1.4 million, which we’re holding and we can’t spend it because of the litigation that’s going on.”
Recreational marijuana sales began in Missouri in February 2023. It’s estimated to have generated more than $1.13 billion in sales thus far.