Missouri Case Over Double Pot Taxation Stays in State Court
Bloomberg Tax News
The Eighth Circuit ruled that a Missouri marijuana dispensary tax dispute remains in state court under the Class Action Fairness Act's local controversy exception.Summary
The U.S. Court of Appeals for the Eighth Circuit upheld a federal trial court's decision to keep a proposed consumer class action against Missouri marijuana dispensaries in state court. The case involves allegations of unlawful collection of county sales tax by dispensaries. The Eighth Circuit determined that the Class Action Fairness Act's exception for local controversies applies, citing the Supreme Court's recent guidance that an amended complaint supersedes the original. The amended complaint narrows the class to Missouri citizens, reinforcing the local nature of the dispute. The ruling ensures the case proceeds in state court, avoiding federal jurisdiction.
(Source：Bloomberg Tax News)