Boone County, municipalities pass sales taxes on recreational marijuana
Multiple marijuana sales tax questions in Boone County passed Tuesday, but the question of if they can be stacked on top of other sales taxes remains.
The amendment passed by voters in November allows for the state to collect 6% sales tax on recreational marijuana sales. The imposition of county and local taxes also required voter approval in these political subdivisions per Article 14 of the Missouri Constitution.
Sales tax questions were on the ballot countywide and in Columbia, Ashland, Centralia, Hallsville and Sturgeon. All were approved by voters.
The Missouri Department of Revenue provided conflicting guidance in February on whether the sales taxes could be stacked in much the way other sales taxes are stacked — state, county, city.
In Columbia collection will not start until the new fiscal year beginning Oct. 1, so there could be time for the question to be resolved, but the Missouri Department of Revenue is leaving that up to the Missouri Supreme Court to ultimately decide.
In the Feb. 10 guidance, the department of revenue saw both sides to the argument for and against tax stacking but stated it would not take sides.
"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," the department said.
Article 14, Section 2.2 defines local government as incorporated — village, town, city, and unincorporated — the county. By establishing this distinction, the department of revenue said "A local government cannot be both; so, there can be only one taxing entity," in the argument against stacking.
The language later in the article in Section 2.6(5) allows "any local government is authorized to impose, by ordinance or order, an additional sales tax in an amount not to exceed three percent on all tangible personal property retail sales of adult-use marijuana sold in such political subdivision," lending to the idea of stacking.
Other election results
Ashland and Hallsville also passed 1% sales tax increases for the purposes of funding public safety.
In the case of Ashland, the collected revenue will be split between the streets and police departments, with at least 40% of the collected revenue going to both departments. The approval also means the next time the city updates its property tax levy, it will be reduced by 25%.
Hallsville's tax is going only toward public safety.
An $8 million bond question from the Boone County Fire Protection District also was approved. This is a continuation of a no-tax-increase bond question toward equipment and truck purchases and the rebuilding of one station on South Route K.
Ashland reelected Nathan Volkart, Stephanie Bell and David Wilson as First through Third Ward aldermen, respectively.
Carli Carmack and Don Driskill were re-elected to their Ward 1 and Ward 2 seats, respectively on the Hallsville Board of Aldermen.
Centralia reelected its Mayor in Chris Cox; Collector Marilyn Dick; Wards 1 and 2 aldermen David Wilkins and Robert Hudson, respectively; and will have a new Ward 3 alderman in Lonnie Cox.
John Zondca was reelected Rocheport Mayor, along with Conrad Yates and Lois Connor as aldermen.
Sturgeon will have a new mayor after Kevin Abrahamson defeated Steve Crosswhite by five votes. Abrahamson previously was an at-large member of the board of aldermen. Two at-large seats were open with Dorrie Crawford and Traci Cramer selected, meaning Janice Butler was defeated in her reelection campaign.
Charles Dunlap covers local government, community stories and other general subjects for the Tribune. You can reach him at cdunlap@columbiatribune.com or @CD_CDT on Twitter. Subscribe to support vital local journalism.
This article originally appeared on Columbia Daily Tribune: Recreational marijuana tax approved. Questions remain
