Robert Celt
New Member
Oregon collected $3.48 million in taxes from recreational marijuana sales in January, far outpacing estimates and offering the first look at how much pot is moving through the state's newly regulated retail market.
The answer: a lot.
Oregon dispensaries sold at least $14 million worth of recreational marijuana in January alone. That figure doesn't take into account medical marijuana sales, which remain untaxed.
The collections for a single month exceed state economists' projections for the entire year. Officials expected between $2 million to $3 million after the state paid for the costs associated with regulation.
Mazen Malik, a senior economist with Oregon's Legislative Revenue Office, called the first round of marijuana tax collections "healthy," but cautioned that sales may fluctuate as will the tax rate. The state also hasn't calculated the expense of regulating the new market.
"It's something that probably says there is a high level of compliance and that consumers are choosing to go to the legal establishment and more and more of them are leaving what we term as a gray or black market," said Malik.
The Oregon Department of Revenue released the figures Thursday, saying it collected the January taxes from 253 dispensaries between Feb. 1 and March 4.
The number of dispensaries that paid the tax is lower than the 309 registered with the Oregon Health Authority.
The Revenue Department is contacting dispensaries that didn't make a tax payment to "make sure they are aware of the requirement to file and pay," said spokeswoman Joy Krawczyk.
Some may have only sold medical marijuana in January even though they're listed on the health authority's directory as selling recreational pot, she said. The health authority regulates medical marijuana dispensaries.
Don Morse, owner of the Human Collective dispensary in Southwest Portland, said some edibles and concentrate makers registered as dispensary businesses but use the space only to store their products. Others, he said, are likely struggling financially in the state's competitive cannabis market.
"I think there are probably people who are barely hanging on," he said.
Oregon's medical marijuana stores have been allowed to sell a limited amount of cannabis flowers, as well as starter marijuana plants and seeds, to anyone 21 and older since last October. The state's temporary 25 percent tax didn't kick in until Jan. 1.
That tax will eventually be replaced with one ranging from 17 percent to 20 percent once the Oregon Liquor Control Commission assumes control over recreational marijuana sales later this year. The Legislature set the base tax rate at 17 percent, but cities and counties may adopt ordinances that add up to 3 percent more.
Next year, the first full year of sales under the liquor commission, state economists expect recreational cannabis sales to generate $10.75 million in tax revenue after the state covers startup costs. That number is expected to climb to $62.42 million for the 2017-2019 biennium.
Dispensaries are required to file a tax return every quarter, but they must make payments each month, Krawczyk said. The monthly payment requirement stems from concerns about dispensaries keeping too much cash on hand, she said.
The agency plans to audit tax returns to ensure dispensaries are paying what they owe, Krawczyk said.
Dispensaries that don't pay their taxes face the same penalty as other delinquent taxpayers: 5 percent of what they owe would be tacked onto their bill.
By law, dispensaries are allowed to keep 2 percent of the tax to offset the costs related to collection. The Revenue Department also keeps some to cover the cost of administering the tax. The liquor commission, too, gets some to pay for the expense of regulating the market.
After that, the law says 40 percent goes to the state's Common School Fund, 20 percent to mental health, alcoholism and drug services, 15 percent to Oregon State Police, 10 percent for city law enforcement, 10 percent for county law enforcement and 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention and treatment services.
The 19 counties and 80 cities that have opted out of recreational marijuana sales don't get a share of the tax revenue.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Oregon Collects $3.48 Million From First Month Of Taxed Recreational Marijuana
Author: Noelle Crombie
Contact: The Oregonian
Photo Credit: Noelle Crombie
Website: The Oregonian
The answer: a lot.
Oregon dispensaries sold at least $14 million worth of recreational marijuana in January alone. That figure doesn't take into account medical marijuana sales, which remain untaxed.
The collections for a single month exceed state economists' projections for the entire year. Officials expected between $2 million to $3 million after the state paid for the costs associated with regulation.
Mazen Malik, a senior economist with Oregon's Legislative Revenue Office, called the first round of marijuana tax collections "healthy," but cautioned that sales may fluctuate as will the tax rate. The state also hasn't calculated the expense of regulating the new market.
"It's something that probably says there is a high level of compliance and that consumers are choosing to go to the legal establishment and more and more of them are leaving what we term as a gray or black market," said Malik.
The Oregon Department of Revenue released the figures Thursday, saying it collected the January taxes from 253 dispensaries between Feb. 1 and March 4.
The number of dispensaries that paid the tax is lower than the 309 registered with the Oregon Health Authority.
The Revenue Department is contacting dispensaries that didn't make a tax payment to "make sure they are aware of the requirement to file and pay," said spokeswoman Joy Krawczyk.
Some may have only sold medical marijuana in January even though they're listed on the health authority's directory as selling recreational pot, she said. The health authority regulates medical marijuana dispensaries.
Don Morse, owner of the Human Collective dispensary in Southwest Portland, said some edibles and concentrate makers registered as dispensary businesses but use the space only to store their products. Others, he said, are likely struggling financially in the state's competitive cannabis market.
"I think there are probably people who are barely hanging on," he said.
Oregon's medical marijuana stores have been allowed to sell a limited amount of cannabis flowers, as well as starter marijuana plants and seeds, to anyone 21 and older since last October. The state's temporary 25 percent tax didn't kick in until Jan. 1.
That tax will eventually be replaced with one ranging from 17 percent to 20 percent once the Oregon Liquor Control Commission assumes control over recreational marijuana sales later this year. The Legislature set the base tax rate at 17 percent, but cities and counties may adopt ordinances that add up to 3 percent more.
Next year, the first full year of sales under the liquor commission, state economists expect recreational cannabis sales to generate $10.75 million in tax revenue after the state covers startup costs. That number is expected to climb to $62.42 million for the 2017-2019 biennium.
Dispensaries are required to file a tax return every quarter, but they must make payments each month, Krawczyk said. The monthly payment requirement stems from concerns about dispensaries keeping too much cash on hand, she said.
The agency plans to audit tax returns to ensure dispensaries are paying what they owe, Krawczyk said.
Dispensaries that don't pay their taxes face the same penalty as other delinquent taxpayers: 5 percent of what they owe would be tacked onto their bill.
By law, dispensaries are allowed to keep 2 percent of the tax to offset the costs related to collection. The Revenue Department also keeps some to cover the cost of administering the tax. The liquor commission, too, gets some to pay for the expense of regulating the market.
After that, the law says 40 percent goes to the state's Common School Fund, 20 percent to mental health, alcoholism and drug services, 15 percent to Oregon State Police, 10 percent for city law enforcement, 10 percent for county law enforcement and 5 percent to the Oregon Health Authority for alcohol and drug abuse prevention, early intervention and treatment services.
The 19 counties and 80 cities that have opted out of recreational marijuana sales don't get a share of the tax revenue.
News Moderator: Robert Celt 420 MAGAZINE ®
Full Article: Oregon Collects $3.48 Million From First Month Of Taxed Recreational Marijuana
Author: Noelle Crombie
Contact: The Oregonian
Photo Credit: Noelle Crombie
Website: The Oregonian
