Cole County to move funds after state seeks nearly $5.8 million refund of marijuana sales tax

Cole County officials on Feb. 10 discussed a refund request from the Missouri Department of Revenue for $5,799,716.62 in marijuana sales-tax receipts and agreed to move funds so the county can meet the state's request.

Speaker 8 reviewed the accounts: Cole County received $6,645,399.79 in marijuana sales-tax receipts and allocated $12,007.79 in interest; expenditures recorded against the fund totaled $73,006.69, including courthouse security ($24,230), radios for the Pringer Center ($20,005.96) and AED devices countywide ($28,842.60). Speaker 8 recommended transferring the full receipts amount back into the marijuana sales-tax fund and moving $60,889.59 from the general fund to cover amounts that had been shifted to other accounts, leaving an estimated balance of $65,683.17 after the refund.

Speaker 8 said the Department of Revenue indicated two of the three local dispensaries had filed for full refunds; Revenue intends to issue refunds to the retailers and does not require the retailers to provide a public plan for refunding customers. "From Department of Revenue's point of view ... their statutes and regulations ... if the retailer ask or if the actual customer asked for refunds, they transfer back," Speaker 8 said, and Revenue's practice is to refund the retailer.

Commissioners discussed the fairness and the practical implications. One commissioner said the situation "kinda angers me" and described concerns about dispensaries receiving a windfall if they do not return funds to customers; another commissioner requested written confirmation from Revenue that refunds will be handled consistent with constitutional and statutory requirements. Staff warned that opposing the refund would likely require litigation and could risk withholding of other tax receipts by the state.

Speaker 8 recommended the commission transfer the full amount into the marijuana sales-tax fund and place budget moves on next week's agenda so a check can be issued in early March to meet the 30-day timing the county staff referenced (letter dated Feb. 4 was discussed). Commissioners gave direction to prepare the necessary budget adjustments and to label the line item as the "adult recreational marijuana fund" on upcoming agendas for clarity.

Next step: staff will present proposed budget moves at next week's meeting to transfer the funds and, if approved, issue payment to the Department of Revenue. Commissioners asked staff to seek written confirmation from Revenue regarding the refund process for ultimate customer restitution.