Jefferson County 911 Dispatch may continue to collect its full 1/2-cent sales tax after winning its lawsuit against the Missouri Department of Revenue.
Cole County Circuit Court Judge Patricia Joyce issued a summary judgment in 911’s favor on Nov. 30.
Had Joyce ruled against 911 Dispatch, it would have seen its primary funding source reduced to a 1/4-cent sales tax.
Joyce, who is from the 19th Circuit Court based in Jefferson City, handled the case after a change of venue moved it from Jefferson County, where the lawsuit originally was filed.
The proceedings were held both in person and online due to the COVID-19 pandemic.
Travis Williams, the 911 Dispatch chief, said Dec. 3 that while the Missouri Department of Revenue could still file an appeal, he is pleased with Joyce’s decision.
“This means we’ll get to continue to collect the full amount that was approved by voters in 2019,” Williams said.
The 1/2-cent sales tax brought in between $7.2 million and $8.2 million a year over the 10-year period ending in 2018, he said.
While the Department of Revenue was listed as the defendant in the case, 911 Dispatch actually was fighting against a legislative amendment Sen. Paul Wieland (R-Imperial) added to Senate Bill 291. The bill went into effect in 2019 and was designed to “clean up” previous legislation aimed at expanding 911 coverage into underserved parts of the state, state legislative publications said.
Wieland’s amendment to the bill, however, would have prohibited Jefferson County 911 Dispatch collecting anything higher than a 1/4-cent sales tax.
Wieland did not return calls for comment.
In April 2019, Jefferson County voters approved 911’s request to continue collecting the 1/2-cent sales tax instead of reducing it by half, as called for in a sunset clause that was part of the sales tax proposal when it was approved in 2009.
In August 2019, after Senate Bill 291 passed with Wieland’s amendment, the state Department of Revenue said it would begin collecting a 1/4-cent sales tax for 911, rather than the 1/2.
However, 911 filed its lawsuit against the DOR in November 2019, and Jefferson County Circuit Judge Joe Rathert issued a temporary restraining order directing the state to continue collecting the higher amount, and 911 Dispatch has continued to receive the higher rate.
Williams said 911 Dispatch leaders and attorneys felt Wieland’s amendment unfairly singled out the agency since it stipulates that 911 agencies serving counties with a charter form of government and with a population between 200,000 and 350,000 cannot have a sales tax greater than 1/4 cent. Jefferson County is the only county in the state that meets those criteria.
“We provided our material facts. We stated how (the measure to continue collecting the 1/2 cent sales tax) was voted on and how it was passed. We stated that when the governor signed the bill (with Wieland’s amendment), it was after the April 2019 election. We stated how we were singled out.”
Williams said he was glad to see the judge agreed.
If Joyce had ruled against 911 Dispatch, it would have affected the agency’s ability to provide services in the future, Williams said.
“Had it gone the other way, we would have been in financial straits in a few years,” he said. “This lifts the cloud off us, and we’ll be able to continue to pursue technology upgrades. We’re all happy we can continue to offer the best possible service for our citizens.”
A Department of Revenue spokeswoman would not say whether the agency plans to appeal Joyce’s decision.
“We don’t comment on active litigation,” said Anna Marie Moy, Department of Revenue director of strategy and communications.
“We hope (the Department of Revenue) doesn’t appeal,” Williams said. “We hope this is the end.”
Bob Sweeney, the 911 Dispatch attorney, said the litigation is not necessarily finished because of the possibility of appeal, but he is pleased with Joyce’s decision.
“We are very appreciative of the judge’s decision,” Sweeney said.