A Missouri hashish firm is suing the state claiming the gross sales tax stack on adult-use hashish gross sales is unconstitutional, KSHB 41 stories. St. Louis County-based Strong Missouri Dispensary 3 argues that the three% tax handed by voters in Jackson and Cass counties violates state regulation and that in February the Missouri Division of Income issued an announcement that clarified “based mostly on constitutional language, a metropolis and a county can’t ‘stack’ the extra as much as 3% native tax on leisure marijuana gross sales.”
That interpretation relies on Article XIV of the Missouri Structure, which reads: “The governing physique of any native authorities is permitted to impose, by ordinance or order, a further gross sales tax in an quantity to not exceed three p.c on all tangible private property retail gross sales of grownup use marijuana bought in such political subdivision.” The “native authorities” language means a county, based on the Income Division interpretation outlined within the lawsuit and, subsequently, St. Louis County dispensaries positioned inside included areas are solely topic to a municipality gross sales tax.
Later in February, the Income Division issued an announcement saying the language of Article XIV is “ambiguous” and that it was rescinding the earlier steerage. The assertion stated that there are “two interpretations” of what “any native authorities” means and that the company would now not advise municipalities or counties on whether or not or not they may stack gross sales taxes on adult-use hashish gross sales.
The lawsuit seeks to settle in courtroom which interpretation of Article XIV is constitutional and whether or not or not Missouri counties can stack gross sales taxes on prime of municipal gross sales taxes for hashish companies working in included areas.
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