Passage of sales tax for retail marijuana sales raises question of tax stacking

The Vernon County Commission met in regular session on Tuesday and Wednesday in the Vernon County Courthouse. The Nevada Daily Mail reached out to the commissioners for clarification on the passage of the 3 percent tax for retail sales of marijuana in the county. With an overwhelming majority, the tax was approved by voters with 1,400 votes (74.55 percent). Only 25.45 percent (478 votes) were in opposition.

The tax will be applied to all marijuana retail sales within the county, on top of the current state sales tax of 6 percent. With the City of Nevada also passing a 3 percent tax on retail marijuana sales, there has been some confusion on whether the county and city's tax will stack (for a total of 6 percent between the two). The Missouri Department of Revenue had addressed this confusion in early February, noting that the department was seeking to clarify whether the taxes would stack — or if it would only apply the county tax to a facility in an unincorporated area. Since this time, there have been legality questions looming in some Missouri counties and cities. In St. Louis and St. Charles counties, the county leaders reportedly intend to stack the city and county recreational marijuana sales taxes — meaning the 3 percent rate voters approved will be 6 percent in most municipalities.

The confusion about tax stacking arises from the amendment to the Missouri Constitution that was passed in November legalizing recreational marijuana that defined local goverments as "cities or towns for incorporated areas" and counties "for unincorporated areas." This would mean that a city sales tax of 3 percent for marijuana retail sales would apply only to dispenaries within the city limits, and a county marijuana retail sales tax would apply to dispensaries only in unincoroporated areas (not within the city). Most municipalities and county governments are still awaiting clarification from the Missouri Department of Revenue on the matter.

According to both Vernon County Presiding Commissioner Joe Wilson and Northern Commissioner Cindy Thompson, the county is still awaiting the state and legal's interpretation of the issue.

In other news, the commissioners would like to remind the community of the 2023 Vernon County Spring Cleanup being held on Saturday, April 22. It will be held from 8 a.m. to noon, at the Vernon County Fairgrounds (1488 E. Ashland St.) Vernon County and the City of Nevada are partnering with Region M Waste Management District to offer this cleanup and recycling event.