As reported by Sophie Peel of the Willamette Week, on May 16, Governor Kotek issued a directive to the OLCC to make state tax compliance a requirement for the agency to issue or renew cannabis retail licenses. This new tax policy is a direct result of the political fallout from the La Mota scandal, which led to the resignation of the Secretary of State, Shemia Fagan. This tax policy may have a huge impact on the Oregon marijuana industry and the changes are coming fast! As early as June 15, 2023 – for a temporary rule and a permanent rule by this fall.
How does the marijuana sales tax work?
Oregon is somewhat unique in that it only taxes marijuana at the point of sale to a retail customer. So producers, wholesalers, and processors don’t collect or pay sales tax. Instead, dispensaries collect up to a twenty percent sales tax (17 percent state + 3 percent local) for each marijuana item sold. The sales tax is typically, if not always, included in the advertised price and not added on at the register. It is invisible to the customer for all intents and purposes.
Here’s an easy example: A dispensary that
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As reported by Sophie Peel of the Willamette Week, on May 16, Governor Kotek issued a directive to the OLCC… Continue reading
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