3% Tax On Recreational Marijuana Starts January 1

By Kiera Morgan

As of January 1 the cities of Depoe Bay, Lincoln City, Newport, Waldport, Yachats and the County recreational marijuana retailers will be required to collect a 3% retail sales tax from the customer at the point of sale.  This will be in addition to the State’s 17% tax on recreational sales.  After the tax is collected and sent to the state the state will then send the cities and the county back their share of the tax minus a fee for processing according to an Intergovernmental  Agreement with the State Department of Revenue.

The Oregon Department of Revenue will begin collecting the 3% tax effective the first quarter of 2017. The Oregon Department of Revenue will supervise and administer the local tax on the sale of marijuana items in accordance with the Intergovernmental Agreements made with the cities and the county. The 3% tax was presented to, and approved by, the voters at the November 8 General Election.  Those marijuana businesses who do not expect to make retail sales after December 31 will operate as a medical marijuana dispensary only and will not have the same tax.