Oregon: City Looking To Temporarily Decrease Sales Tax In Order to Maximize it Later

Jacob Redmond

Well-Known Member
Marijuana discussions return to the Gresham City Council on Tuesday as officials plan to recommend to councilors the repeal an existing 10 percent sales tax on recreational marijuana, and instead ask voters to approve a 3 percent tax.

The repeal of the 10 percent tax would keep the city in compliance with laws passed by state lawmakers this year that amended last year's Ballot Measure 91, according to City Council records. More than 51 percent of the Gresham voters who casted ballots supported Measure 91, which authorized recreational drug use.

City attorney David Ris said Friday one medical dispensary and one plant growing business have secured permits from the city since councilors allowed medical sales in May. Others may be coming, he said. In September, councilors voted not to allow the early sales of recreational sales inside medical marijuana dispensaries in the city.

Some councilors had said they would play the wait-and-see strategy to figure out what lawmakers would do with land use regulations and other rules governing the recreational sale of the drug. Council records for Tuesday's meeting show no recommendations about allowing the recreational sales of the drug at medical pot shops.

However, city officials will be ready to recommend taxes for recreational sales to councilors.

This year, state lawmakers approved a temporary 25 percent tax on recreational sales that begins Jan 4. By late 2016, that tax should be replaced with a 17 percent tax. According to city council records, cities will share one-tenth of that 17 percent tax revenue. Cities have the option to levy up to 3 percent in sales tax, if approved by voters.

Ris said the city did not have an estimate of how much money a 3 percent tax would bring to the city.

Councilors will also hear other policy options concerning medical marijuana dispensaries that include the permissible distances medical pot shops must keep from youth programs and child care facilities, odor issues and enforcement.

The City Council meets at 3 p.m. Tuesday at the Gresham City Hall Conference Center on Northwest Eastman Parkway.

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Full Article: City Looking To Temporarily Decrease Sales Tax In Order to Maximize it Later
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Photo Credit: Beth Nakamura/The Oregonian
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