The Missouri Supreme Court ruled April 26 to dismiss the Missouri Department of Revenue’s appeal of a Circuit Court’s ruling that allowed Jefferson County 911 to continue collecting its 1/2-cent sales tax.
However, whether 911’s full 1/2-cent sales tax remains in place in perpetuity remains in question since those on both sides of the case view the Supreme Court decision differently.
What is not in dispute is the Supreme Court, in a 5-2 vote, dismissed the Missouri Department of Revenue’s appeal of Cole County Judge Patricia Joyce’s November 2020 summary judgment, which was a ruling in 911’s favor.
Travis Williams, chief of the county’s 911 Dispatch, said his agency views the Supreme Court decision at least as a partial victory.
“I think the Supreme Court didn’t hurt us any,” Williams said. “They didn’t overturn the lower court’s decision. We consider it a win, but it’s still a little cloudy because it can still be appealed.”
State Sen. Paul Wieland (R-Imperial), who filed legislation that he believes should have reduced the amount of sales tax 911 could collect, said the Supreme Court’s ruling means a lower court will reconsider the matter.
“From what I understand, the decision brings the case back to the lower courts,” Wieland said. “It’s continuing to course its way through the system.”
Bob Sweeney, attorney for 911, said that while the case may return to court after the recent Supreme Court decision, it is not necessarily a given.
“If the Department of Revenue doesn’t file an appeal, it’s over,” Sweeney said.
If Joyce or the Supreme Court had ruled against 911, its funding source would have been reduced to a 1/4-cent sales tax.
The 1/2-cent sales tax raises about $8 million per year for 911, Williams said. If dropped to a 1/4-cent sales tax, it would generate about half that per year, he said.
The conflict began when Wieland added a legislative amendment to Senate Bill 291, which went into effect in 2019 and was designed to “clean up” previous legislation intended to expand 911 coverage into underserved parts of the state, according to state publications.
Wieland’s amendment was intended to prohibit Jefferson County 911 Dispatch from collecting anything above a 1/4-cent sales tax, even though 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 the 1/2-cent sales tax was first approved by voters in 2009.
Wieland said he opposed 911’s pursuit to keep the full 1/2-cent sales tax saying that when voters initially approved it, they wanted it reduced in 10 years. He also has disputed that the agency needed the extra money generated by the 1/2-cent sales tax.
In August 2019, after Senate Bill 291 passed with Wieland’s amendment, the DOR announced it would begin collecting a 1/4-cent sales tax for 911, rather than the 1/2-cent tax.
Then, in November 2019, 911 filed a lawsuit against the DOR arguing it should be allowed to continue collecting the full 1/2-cent sales tax, and Jefferson County Circuit Judge Joe Rathert issued a temporary restraining order that allowed 911 to continue to collect the 1/2-cent sales tax.
Officials of 911 contend that 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 that criteria.