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20 percent tax being considered for OR retail cannabis

A legislative committee
working to implement the state’s new legal cannabis system voted unanimously to
send a key bill to the full legislature for a vote. This new legislation spells
out how the

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A legislative committee
working to implement the state’s new legal cannabis system voted unanimously to
send a key bill to the full legislature for a vote. This new legislation spells
out how the state will set standards for labeling, packaging and testing of cannabis,
and gives the Oregon Liquor Control Commission authority to enforce regulations
on the legal cannabis industry. It would also regulate Oregon’s existing
medical cannabis program and allow elected officials in cities and counties
that voted against Measure 91 to pass bans on recreational and medical cannabis
businesses.

The bill would not limit
the ability of adults to grow recreational or medical cannabis for their own
use, or prohibit cardholders from growing cannabis for patients whom they
supply directly.

So, it’s official—House
Bill 3400 will receive its first full vote in the Oregon House. Lawmakers on
the committee will continue to work on some of the proposals that were left out
of HB-3400. That includes a proposal that would allow medical cannabis
dispensaries to temporarily sell cannabis to recreational customers, starting
July 1, until the launch of the recreational cannabis retail system sometime in
2016.

Provisions
to HB-3400 include reduced cannabis-related crimes, residency requirements for
cannabis business owners, updated regulations on advertising, energy and water
efficiency regulations, cannabis industry workers’ protection, product
regulations and production limits, among others.

Lawmakers plan to tackle
early sales and recreational cannabis taxes in separate bills, and took public
testimony on the heavy-weight tax bill, House Bill 2041. The committee has not
yet passed HB-2041, the bill that creates a new “point of sale” tax
of an estimated 17 percent on cannabis products at retail. It replaces a
per-ounce harvest tax contained in the legalization initiative approved by
voters. HB-3400 allows localities to levy a local tax of as much as three
percent, on top of that, if passed.

Scott Winkels,
lobbyist for the League of Oregon Cities, told Associated Press that they were happy the legislature gave localities
authority to charge a tax, since originally, Measure 91 gave only the state
authority to tax. After the retail cannabis system is implemented and the
localities have a better idea of the kind of revenue it will be bringing in,
the League of Oregon Cities would like to see the tax amount increased.
“But having it on the books, we think, is a huge win,” he told Associated Press.

The sales taxes
would take the place of taxes imposed on growers under the original terms of
Measure 91.

Unfortunately,
there really hasn’t been any thorough analysis of how much the tax might
generate, according to Rob Patridge, chairman of the Oregon Liquor Control
Commission, which oversees the recreational cannabis industry.

Many committee members
said after the vote Monday that this legislature will likely work for years to
come, helping shape Oregon’s new legal cannabis industry.

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