Katelyn Baker
Well-Known Member
Oregon medical marijuana dispensaries have sold an estimated $102 million in recreational cannabis since January, when the state imposed a 25 percent sales tax on pot.
In the last six months the state has collected $25.5 million in sales tax revenue on those sales, and Brookings is looking to get in on a little of that action.
The city has a tax measure on the Nov. 8 ballot that would add a 3-cent tax on purchases made in the three dispensaries in Brookings. If voters approve it, it could bring in about $43,000 to city coffers
The city council will discuss at its Sept. 6 meeting how revenue generated from the tax should be spent.
The $43,000 is a guesstimate based on information provided by one dispensary owner who said he paid $10,000 a month in taxes to the state.
Meanwhile, the state expects to receive about $44.4 million by year's end, figures released earlier this week indicate.
Of that, the state expects to spend $28.7 million to regulate marijuana.
Tax revenue will cover $12 million of that cost, with business fees and licensing paying for the rest.
The 25 percent state tax, which went into effect Jan. 1, will be replaced with one ranging from 17 to 20 percent when the Oregon Liquor Control Commission takes over regulation of recreational marijuana sales. That date has yet to be determined.
State revenue will be distributed to various sectors of government, including 40 percent going to the state's Common School Fund, 20 percent to mental health, alcoholism and drug services; 15 percent to Oregon State Police; 10 percent each to county and city law enforcement; and 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention and treatment services.
Cities are allowed, under law, to implement additional taxes up to 3 percent. Brookings and Gold Beach will have such questions on the November ballot.
Brookings' and Gold Beach's ballot questions do not indicate how revenue would be spent; without such direction, it will go into the general fund.
However, Gold Beach's 2016-17 budget shows the funds will be spent to address derelict and abandoned buildings that have become dangerous. The funds will be administered through a Nuisance Abatement Reserve Fund.
"They started the fund because the past few years we have had to remove derelict houses at a pretty steep cost to us and with no way to recoup the money other than lien the property," said City Administrator Jodi Fritts. "The liens typically don't work on properties like these because usually the people were upside down on their loan, so whatever the mortgage note-holder gets is usually not sufficient to pay it, much less any other debts attached to the property."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: City Wants In On Marijuana Tax Revenue
Author: Jane Stebbins
Contact: (541) 469-3123
Photo Credit: Getty Images
Website: Curry Coastal Pilot
In the last six months the state has collected $25.5 million in sales tax revenue on those sales, and Brookings is looking to get in on a little of that action.
The city has a tax measure on the Nov. 8 ballot that would add a 3-cent tax on purchases made in the three dispensaries in Brookings. If voters approve it, it could bring in about $43,000 to city coffers
The city council will discuss at its Sept. 6 meeting how revenue generated from the tax should be spent.
The $43,000 is a guesstimate based on information provided by one dispensary owner who said he paid $10,000 a month in taxes to the state.
Meanwhile, the state expects to receive about $44.4 million by year's end, figures released earlier this week indicate.
Of that, the state expects to spend $28.7 million to regulate marijuana.
Tax revenue will cover $12 million of that cost, with business fees and licensing paying for the rest.
The 25 percent state tax, which went into effect Jan. 1, will be replaced with one ranging from 17 to 20 percent when the Oregon Liquor Control Commission takes over regulation of recreational marijuana sales. That date has yet to be determined.
State revenue will be distributed to various sectors of government, including 40 percent going to the state's Common School Fund, 20 percent to mental health, alcoholism and drug services; 15 percent to Oregon State Police; 10 percent each to county and city law enforcement; and 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention and treatment services.
Cities are allowed, under law, to implement additional taxes up to 3 percent. Brookings and Gold Beach will have such questions on the November ballot.
Brookings' and Gold Beach's ballot questions do not indicate how revenue would be spent; without such direction, it will go into the general fund.
However, Gold Beach's 2016-17 budget shows the funds will be spent to address derelict and abandoned buildings that have become dangerous. The funds will be administered through a Nuisance Abatement Reserve Fund.
"They started the fund because the past few years we have had to remove derelict houses at a pretty steep cost to us and with no way to recoup the money other than lien the property," said City Administrator Jodi Fritts. "The liens typically don't work on properties like these because usually the people were upside down on their loan, so whatever the mortgage note-holder gets is usually not sufficient to pay it, much less any other debts attached to the property."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: City Wants In On Marijuana Tax Revenue
Author: Jane Stebbins
Contact: (541) 469-3123
Photo Credit: Getty Images
Website: Curry Coastal Pilot
