In St. Charles County, Missouri, the top elected official is planning to take the fight over marijuana sales tax to the state supreme court. This comes after an appellate court ruled that St. Charles and St. Louis counties could not impose their own marijuana sales taxes on top of municipal taxes.
St. Charles County Executive Steve Ehlmann stated, “We won at the circuit court level. The marijuana people won at the court of appeals level. Hopefully, the Missouri Supreme Court will be the final arbiter in this case. I’ve talked to St. Louis County Executive Sam Page, and we both agree it needs to be appealed.”
The Missouri Court of Appeals Eastern District overturned a decision by St. Louis County Circuit Judge Brian May, stating that counties are not constitutionally authorized to enact a retail tax. Florissant business Robust Dispensary sued St. Louis County for tax stacking, as the city also has a sales tax on marijuana sales.
Ehlmann argued, “On alcohol, you have state and federal excise taxes. Why wouldn’t you have an additional city and county tax for marijuana?”
The marijuana industry believes that overtaxing individuals leads to an increase in illicit sales and less funding for veterans and substance abuse programs. In April 2023, St. Louis County voters approved a 3% tax on marijuana, while 72% of voters in St. Charles County passed a similar measure.
Ehlmann expressed frustration over the $1.4 million collected from marijuana sales that cannot be spent due to ongoing litigation. Recreational marijuana sales began in Missouri in February 2023, generating over $1.13 billion in sales to date.
