Opinion ID: 1760304
Heading Depth: 1
Heading Rank: 3

Heading: violation of missouri constitution article x, section 1

Text: The Local Taxing Authorities also claim that the Director does not have authority under section 148.749 to withhold amounts necessary for refunds because section 148.749 violates article X, section 1, of the Missouri Constitution. Section 1 provides that the state has the power to levy taxes for state purposes and that local governments have the power to levy taxes for local purposes. The Local Taxing Authorities argue that the Director's proposed action under 144.749 violates section 1 because the Director is attempting to use local funds for a state purpose. As further support for this argument, the Local Taxing Authorities cite article X, section 10(b), of the Missouri Constitution, which provides that funds collected by the state may be distributed to local governments for local purposes. As we understand the section 10(b) argument, because there is no counterpart to section 10(b) that allows the use of local funds for state purposes, by implication the Director cannot withhold local funds to make refunds of the statewide local use tax. The Local Taxing Authorities fail to recognize that section 1 pertains to the levying of taxes, not the withholding of taxes that have already been levied and collected. The withholding of these taxes is not a levy. As to the section 10(b) argument, the mere fact that the Missouri Constitution lacks an express provision for the Director's action does not render the Director's action unconstitutional. The general assembly may grant the Director powers that are not prohibited by the Missouri Constitution. Fust v. Attorney General, 947 S.W.2d 424, 430 (Mo. banc 1997) (Absent a [constitutional] prohibition, the general assembly's legislative power is plenary). Thus, section 144.749 does not violate sections 1 and 10(b).