Oregon Senate Approves Sales Tax Hike for Marijuana Users

On June 23, 2021, the Oregon Senate approved a measure (SB 864) by 23 votes to 6 that, if passed by the House of Representatives and signed by Governor Kate Brown, will allow cities and counties to earn their share of marijuana sales tax -Items sold in recreational pharmacies from 3%, as permitted by applicable law, to 10%. This means the total tax levied at the time of sale could increase from 20% to 27%, a 35% tax increase for recreational cannabis users in Oregon.

While the law won’t automatically result in a tax increase when it becomes law, it will allow city and county boards to increase marijuana sales tax within their own jurisdiction, much like current law. However, if past experience is predictive, it is almost certain that most or all local governments will take the necessary steps to enforce the tax hike. Customers who present current, valid OMMP cards at the time of sale are still exempt from this tax.

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The measure will now be submitted to the House of Representatives for consideration and, based on the Senate vote, is likely to pass unless voters make themselves heard in the opposition. If you want to have your voice heard, you can find your representative using this online tool. The legislative period ends on Sunday, June 27, 2021, so time is of the essence.

Kevin Jacoby is an attorney with the Green Light Law Group. He has focused his professional career on advising small and medium-sized companies on procedural matters as well as on all aspects of administrative compliance and the employment relationship. In addition to business-to-business processes, Kevin has devoted a significant part of his practice to administrative law.

This article originally appeared in the Green Light Law Group and was republished with permission.