King City was ahead of its time in joining dozens of other Oregon cities in approving a sales tax on the sale of recreational marijuana before voters even passed Measure 91 in the Nov. 4 election.
While Measure 91 allows the possession and use of recreational marijuana, which was previously only allowed for medical marijuana users, it also prohibits counties and cities from imposing any fee or tax "in connection with the purchase, sale, production, processing, transportation, and delivery of marijuana items."
The measure also states that state law supersedes and replaces local ordinances inconsistent with it.
However, many cities jumped on the sales tax bandwagon with the idea that ordinances already in place before the election may be allowed to stand.
At the Sept. 3 City Council meeting, City Attorney Shelby Rihala presented a draft ordinance for consideration and said that the time to enact a tax on the sale of marijuana and associated products was limited with the election two months away at that point. The intent of the tax was to provide funding to administer sales activities and to offset any increased costs for law enforcement related to sales activity.
"There is the possibility that the state could challenge any tax created by local agencies, but it is allowable under current law to enact them," City Manager Dave Wells said at the time. "This is a discussion that needs to happen before the November election. This really is a policy discussion for the council to establish the responsibilities of the city and sellers."
Rihala added, "(By passing this ordinance before the election) this may grandfather in the city's right to tax marijuana sales. If we don't pass it, I'm 100 percent sure King City will never get any taxes from marijuana sales. And if you pass it, you can revoke it later."
Following more discussion, the City Council directed Rihala to bring back the ordinance at the next meeting for introduction and reading.
On Sept. 17, the ordinance that establishes a tax on the sale of marijuana and marijuana-infused products within the city limits was introduced and read by title only, and the council voted 5 to 0 to hold a public hearing Oct. 1.
At that meeting, no one spoke during the public hearing, and the council voted 6 to 0 to waive the second reading and adopt the ordinance.
Ordinance No. 0-2014-04 calls for every seller in King City engaged in the sale of marijuana and marijuana-infused products to pay the following tax: 5 percent of the gross sale amount paid to the seller by a registry identification cardholder under the Oregon Medical Marijuana Program, and 10 percent of the gross sale amount paid by individuals who are not registry identification cardholders purchasing marijuana or marijuana-infused products under the Oregon Medical Marijuana Program.
News Moderator: Shandar @ 420 MAGAZINE ®
Source: Pamplin Media Group
Author: Barbara Sherman
Contact: Contact Us
Website: King City is ready to tax marijuana sales if Oregon law allows it
While Measure 91 allows the possession and use of recreational marijuana, which was previously only allowed for medical marijuana users, it also prohibits counties and cities from imposing any fee or tax "in connection with the purchase, sale, production, processing, transportation, and delivery of marijuana items."
The measure also states that state law supersedes and replaces local ordinances inconsistent with it.
However, many cities jumped on the sales tax bandwagon with the idea that ordinances already in place before the election may be allowed to stand.
At the Sept. 3 City Council meeting, City Attorney Shelby Rihala presented a draft ordinance for consideration and said that the time to enact a tax on the sale of marijuana and associated products was limited with the election two months away at that point. The intent of the tax was to provide funding to administer sales activities and to offset any increased costs for law enforcement related to sales activity.
"There is the possibility that the state could challenge any tax created by local agencies, but it is allowable under current law to enact them," City Manager Dave Wells said at the time. "This is a discussion that needs to happen before the November election. This really is a policy discussion for the council to establish the responsibilities of the city and sellers."
Rihala added, "(By passing this ordinance before the election) this may grandfather in the city's right to tax marijuana sales. If we don't pass it, I'm 100 percent sure King City will never get any taxes from marijuana sales. And if you pass it, you can revoke it later."
Following more discussion, the City Council directed Rihala to bring back the ordinance at the next meeting for introduction and reading.
On Sept. 17, the ordinance that establishes a tax on the sale of marijuana and marijuana-infused products within the city limits was introduced and read by title only, and the council voted 5 to 0 to hold a public hearing Oct. 1.
At that meeting, no one spoke during the public hearing, and the council voted 6 to 0 to waive the second reading and adopt the ordinance.
Ordinance No. 0-2014-04 calls for every seller in King City engaged in the sale of marijuana and marijuana-infused products to pay the following tax: 5 percent of the gross sale amount paid to the seller by a registry identification cardholder under the Oregon Medical Marijuana Program, and 10 percent of the gross sale amount paid by individuals who are not registry identification cardholders purchasing marijuana or marijuana-infused products under the Oregon Medical Marijuana Program.
News Moderator: Shandar @ 420 MAGAZINE ®
Source: Pamplin Media Group
Author: Barbara Sherman
Contact: Contact Us
Website: King City is ready to tax marijuana sales if Oregon law allows it
