Missouri Supreme Court holds statutes creating lodging tax
unconstitutional
KANSAS
CITY, Mo. , July 10,
2024 /PRNewswire-PRWeb/ -- Lathrop GPM is proud to
announce that Senior Counsel Curtis L.
Tideman, Associate Brooke
Parsons and Partner Matthew A.
Jacober have secured a win for their clients Gail Griswold and Laura
Salamun in a lawsuit challenging the constitutionality of
the statutes creating the business districts and the lodging tax
for the Lake of the Ozarks Area. On June 25,
2024, the Missouri Supreme Court agreed with Griswold and
Salamun, holding that these statutes are in violation of the
Missouri Constitution.
"The Lake of the Ozarks area sees an
extremely high volume of tourism, and the end of this lodging tax
will have a significant effect on our business community. We stand
by ready to help our clients navigate the new legal landscape
created by this ruling," said Tideman.
"We are thrilled that our clients were successful in this
important case impacting our local tourism industry," said Tideman.
"The Lake of the Ozarks area sees an extremely high volume of
tourism, and the end of this lodging tax will have a significant
effect on our business community. We stand by ready to help our
clients navigate the new legal landscape created by this
ruling."
In 1993, the Missouri
legislature enacted four statutes governing the creation,
operation, and dissolution of a taxing district known as the Lake
Area Business District. The governing body of this district is an
entity known as the advisory board, whose primary purpose is to
spend the lodging tax collected in the district for the promotion
of tourism in the area. The taxing district was created in
Camden, Miller, and Morgan Counties – also known as the Lake of
the Ozarks Area. Every lodging establishment in this area collects
a lodging tax of up to 3%, which is ultimately remitted to the
business district advisory boards for expenditure.
In 2020, Griswold and Salamun (on behalf of themselves and their
respective lodging businesses, Shawnee Bluff Winery and Pointe View
Resort), filed a lawsuit claiming that the lodging tax statutes
were unconstitutional under Article VI, Section 23 of the Missouri
Constitution, which prohibited "grant[ing] public money or thing of
value to […] any corporation, association or individual, except as
provided in this constitution." The lawsuit alleged
that the statutory language of the lodging tax statutes allowed a
private entity (the business district advisory boards) to control
public money (the lodging tax revenue).
In the wake of this ruling, the payment and the collection of
the lodging tax must cease in all regards in the Lake of the Ozarks
area. The tourism industry in this region consists of large
resorts, small B&Bs, and vacation rentals (such as those
advertised on Airbnb and VRBO).
About Lathrop GPM LLP
Lathrop GPM is a full-service, Am Law 200 law firm with more than
325 attorneys and other legal professionals in 11 offices. Our
attorneys provide a full spectrum of corporate legal services:
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countries worldwide. For more information, visit
http://www.lathropgpm.com.
Media Contact
Jasmine Trillos-Decarie, Lathrop GPM, 720.931.3125,
Jasmine.Decarie@lathropgpm.com, https://www.lathropgpm.com/
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SOURCE Lathrop GPM