Marijuana tax stacking unclear for Columbia, Boone County

Voters likely won't know whether city and county sales taxes on recreational marijuana could stack when they go to the polls Tuesday.

Janet Thompson, Boone County District II commissioner, and Betsy Peters, Columbia's Sixth Ward city councilperson, discussed the potential taxes Friday with the Muleskinners, Boone County's Democratic Club.

Thompson believes the decision about local marijuana tax stacking will go to the Missouri Supreme Court if both taxes pass. She said the question of tax stacking applies to the language of Amendment 3, which falls under the state Supreme Court's purview.

"I suspect they will take jurisdiction of this because — even though it's the interpretation of language — it's the interpretation of the language in a constitutional amendment," Thompson told the Missourian.

Missouri voters approved state Amendment 3 in November 2022, which allowed the use and sale of recreational marijuana. This amendment also allowed for a 6% state sales tax and a 3% local sales tax on recreational marijuana.

Both Boone County and the City of Columbia will allow voters to decide on a 3% sales tax on April 4.

Voters who live in unincorporated Boone County will see Proposition 1, asking if Boone County can establish a 3% sales tax on marijuana. Voters within Columbia city limits will see the proposition in two separate questions for a tax in both city and county respectively.

Amendment 3 does not specifically state if the sales taxes can be stacked within the local government. According to Article XIV Section 2.6(5), the governing body of "any local government" can impose an additional 3% sales tax.

Thompson explained that tax stacking is fairly common for other items.

"If you buy a candy bar in the city of Columbia, you pay a state sales tax, you pay a county sales tax and you pay a city sales tax, right?" Thompson said. "All three, that's how that works."

Thompson said the Missouri Department of Revenue indicated that if voters authorize both taxes, they will go ahead and collect it, then send it back to the jurisdictions, Thompson said, but Boone County plans to set the tax revenue aside until the discrepancy is resolved at the Missouri Supreme Court level.

If passed in the city, the revenue will go toward the city's general funds. The city spends 57% of the city's general fund on public safety such as police and fire departments, 10% on health and environment and some to support administration and transportation, Peters said.

If passed for Boone County, the revenue will not be designated for a particular use, Thompson said. The majority of the county's sales tax revenue goes toward public safety and road and bridge funding, she added.

Thompson did mention that if the legislature doesn't stream revenue toward the expungement of marijuana convictions and the work that goes into it — such as providing overtime to employees — she hopes the revenue from the marijuana tax will "supplement our coffers."

Peters said the city's tax would go into effect on Oct. 1, if passed.

Both Columbia and Boone County have placed 3% taxes on the April 4 ballot, but whether the taxes are stackable is unclear.

Assistant city editor for city and county government. Reach me at [email protected], on Twitter at @hopedavistweets or in the newsroom at 882-5700

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