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Supreme Court ruling on marijuana sales tax leaves county funds in limbo; county retains collections for now
Summary
County officials said a Missouri Supreme Court decision about marijuana sales tax collection has left questions about returning previously collected tax; the commission was advised to hold the funds pending guidance and possible future claims estimated at about $330,000.
County officials told the St. Francois County Commission that a recent Missouri Supreme Court ruling about marijuana sales-tax collection has left the status of previously collected local revenue unclear and that the county should retain those funds for now.
Staff reported that the Missouri Department of Revenue originally sought to return certain collected sales taxes to vendors, but state counsel for county associations argued the consumer — not the vendor — paid the tax and that returning funds to vendors raised practical problems. County staff estimated the local amount potentially affected at roughly $330,000, though officials said that figure is approximate and subject to final determinations by state authorities or litigation.
Because guidance on how to return any disputed funds is not yet available, county officials recommended not spending the collections. Commissioners noted past instances in which counties that spent disputed tax collections later had to borrow or transfer money to repay the state when directed to do so.
In the same departmental report, county staff summarized advice from Missouri Association of Counties legal counsel on House Bill 567, which raised minimum wage and paid-sick-leave provisions in some jurisdictions. Staff said the association’s guidance indicates the bill does not automatically require political subdivisions (including counties) to adopt the increased minimum wage; the county may choose whether to apply the statutory minimum wage to county employees depending on local budget and pay-scale decisions.
Commissioners discussed workforce pressures and competing pay rates in the private sector, and staff noted two sheriff’s department employees currently earn less than $15 per hour. The commission did not adopt a policy change at the meeting; staff advised retaining the marijuana-tax collections and monitoring state guidance on both the tax ruling and HB 567 implications.
Officials said the situation may be drawn out and could require legal action or further administrative guidance; commissioners directed staff to keep the funds available should the Department of Revenue or a court determine the county must return some receipts.
