Robert Celt
New Member
The price of recreational marijuana rose by 25 percent Monday after a statewide sales tax went into effect. The rise may surprise people who had gotten used to the tax-free sales at medical dispensaries since Oct. 1.
The tax coincides with the first day the Oregon Liquor Control Commission has opened up its applications for licenses. The first state-licensed retail stores should open in the fall.
In the meantime, the new tax will take place in the medical dispensaries that have been selling recreational marijuana for the past three months. It applies to all recreational products – including flowers, plants, seeds – and local governments can tax up to 3 percent on top, like the city of Roseburg has done.
Marijuana is now the third product in Oregon to be taxed at the point of sale, alongside hotel rooms and prepaid mobile phone cards. Unlike taxes on gas and cigarettes, which are paid by the producer or seller and built into the price, the customer pays the extra percentage directly.
People with Oregon Medical Marijuana cards, that are still overseen by the Oregon Health Authority, can get marijuana tax-free.
Officials expect Oregon to earn $2 to $3 million in revenue this year from marijuana sales, according to a report from the Legislative Revenue Office. Tax revenues collected will be divvied up several ways: 40 percent of the tax will go to the common school fund, 20 percent to mental health, alcoholism and drug services, 15 percent to the Oregon State Police, 10 percent to the city law enforcement, 10 percent to the county law enforcement and 5 percent to the Oregon Health Authority.
"We think officials will be surprised at how much will come in through this system," said Nathan Marsh, the board president of the Umpqua Cannabis Association.
With prices expected to rise 25 cents on the dollar, there has been speculation as to whether the tax will deter customers who can find it from a cheaper black market dealer.
Shellie Grammer, the owner of local dispensary Cougar Cannabis, said while some people lamented not stocking up on weed before the tax went into effect, business has been stead. She said customers appreciate that, unlike buying it off the streets, the marijuana has been tested. Plus, it's easier to find a store than a dealer.
"(Customers say) 'you've gotta call your friend who has a friend...' It's just so much easier to come in here during regular business hours," Grammer said.
Before the tax, a price of a gram of recreational marijuana ranged from $6 to $14.
With recreational sales taking over, medical dispensaries could head for greener pastures. Grammer said that since October, sales at Cougar Cannabis has been dominated by recreational sales – about 70 percent of sales, she said. For that reason, Cougar Cannabis, and others, could abandon the medical marijuana program altogether.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Marijuana Sales Now Taxed In Oregon
Author: Troy Brynelson
Contact: NR Today
Photo Credit: Ryan Brennecke
Website: NR Today
The tax coincides with the first day the Oregon Liquor Control Commission has opened up its applications for licenses. The first state-licensed retail stores should open in the fall.
In the meantime, the new tax will take place in the medical dispensaries that have been selling recreational marijuana for the past three months. It applies to all recreational products – including flowers, plants, seeds – and local governments can tax up to 3 percent on top, like the city of Roseburg has done.
Marijuana is now the third product in Oregon to be taxed at the point of sale, alongside hotel rooms and prepaid mobile phone cards. Unlike taxes on gas and cigarettes, which are paid by the producer or seller and built into the price, the customer pays the extra percentage directly.
People with Oregon Medical Marijuana cards, that are still overseen by the Oregon Health Authority, can get marijuana tax-free.
Officials expect Oregon to earn $2 to $3 million in revenue this year from marijuana sales, according to a report from the Legislative Revenue Office. Tax revenues collected will be divvied up several ways: 40 percent of the tax will go to the common school fund, 20 percent to mental health, alcoholism and drug services, 15 percent to the Oregon State Police, 10 percent to the city law enforcement, 10 percent to the county law enforcement and 5 percent to the Oregon Health Authority.
"We think officials will be surprised at how much will come in through this system," said Nathan Marsh, the board president of the Umpqua Cannabis Association.
With prices expected to rise 25 cents on the dollar, there has been speculation as to whether the tax will deter customers who can find it from a cheaper black market dealer.
Shellie Grammer, the owner of local dispensary Cougar Cannabis, said while some people lamented not stocking up on weed before the tax went into effect, business has been stead. She said customers appreciate that, unlike buying it off the streets, the marijuana has been tested. Plus, it's easier to find a store than a dealer.
"(Customers say) 'you've gotta call your friend who has a friend...' It's just so much easier to come in here during regular business hours," Grammer said.
Before the tax, a price of a gram of recreational marijuana ranged from $6 to $14.
With recreational sales taking over, medical dispensaries could head for greener pastures. Grammer said that since October, sales at Cougar Cannabis has been dominated by recreational sales – about 70 percent of sales, she said. For that reason, Cougar Cannabis, and others, could abandon the medical marijuana program altogether.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Marijuana Sales Now Taxed In Oregon
Author: Troy Brynelson
Contact: NR Today
Photo Credit: Ryan Brennecke
Website: NR Today
