Buffalo, Dallas County Seek to Double-up on Taxes With August Ballot Proposal
Department of Revenue Questions Constitutionality of Stacking Adult-Use Marijuana Taxes
New 3% adult-use taxes for recreational marijuana could appear on the August ballot for Buffalo and Dallas County, with plans to “stack” the taxes. Stacked taxes would result in marijuana sales taxes exceeding 20%. However, a letter from the Missouri Department of Revenue to local governments raises questions about the constitutionality of stacked taxes, suggesting voters might risk the issue going to court.
State Guidance & Retraction
In February, the Taxation Division of the Missouri Department of Revenue issued a letter stating that based on constitutional language, a city and county cannot “stack” an additional 3% local tax on recreational marijuana sales. The letter clarified that tax collection depends on whether the facility is in an incorporated or unincorporated area if both a city and county enact the tax.
Later that month, the Division retracted its guidance in another letter, which did not explicitly support tax stacking but instead presented arguments for and against it.
Proponents of stacking cite constitutional wording such as “any,” “additional,” and “political division.” Opponents rely on the constitutional definition of “local government,” which states that a county is the local government only “in the case of an unincorporated area.”
The Division noted that neither interpretation is absolute, leaving the decision to the people and, if necessary, the courts.
The Missouri Department of Revenue sent two letters to political subdivisions in Missouri this February.
Local Ballot Measures
According to John Crawford, Presiding Commissioner, the Dallas County Commission has added a 3% marijuana adult-use tax to the August 8 election ballot. The Buffalo Board of Aldermen will vote on Bill No. 23-15 at their next meeting, potentially adding another 3% adult-use tax to the August ballot.
When asked if the county expects the taxes to stack if both measures pass in August, Crawford said he anticipates stacking the taxes, remarking, “they’re costing us money, so yeah I’d hope it would.”
Martha Swearingin, Buffalo City Clerk, says that unless the state provides further guidance, Buffalo expects to collect taxes alongside the county for transactions within city limits. Before the board votes, citizens can voice their opinions at a public meeting on Monday, May 8, at 7:00 p.m. at 119 S Maple St.
Bill No. 23-15 will be voted on at a public meeting by the Buffalo Board of Aldermen in the Municipal Building on Monday, May 8 at 7:00 p.m.
Total Tax Could Be Over 20%
If both measures pass and the city and county enforce a stacked adult-use tax, the total for sales in Buffalo would be 20.225%.
| Tax | Rate |
|---|---|
| Missouri Sales Tax | 4.225% |
| Dallas County Sales Tax | 2.5% |
| Buffalo Sales Tax | 1.5% |
| Missouri Marijuana Adult Use Tax | 6% |
| Proposed Dallas County Marijuana Adult Use Tax | 3% |
| Proposed Buffalo Marijuana Adult Use Tax | 3% |
| Total | 20.225% |
No Ballot Measure for Greene County
Bob Dixon, Presiding Commissioner of the Greene County Commission, said there are “no plans” to add a marijuana adult-use tax to the August ballot for Greene County. The Springfield City Clerk did not respond to a request for comment about whether Springfield would add a similar measure this August.
The Dallas County Free Press attempted to contact John McDowell, general manager of Good Day Farm's Buffalo location, to inquire about concerns over customers potentially shopping in Springfield for lower taxes, but he did not respond to repeated requests for comment.