Dec 302015
 December 30, 2015
marijuana taxes tax

(via dailyfinance.com)

Limited recreational marijuana sales began in Oregon on October 1. Since that time, customers have not had to pay any tax on recreational marijuana. That changes next week when a recreational marijuana sales tax goes into effect in Oregon. Per Oregon Live:

Recreational marijuana consumers in Oregon should prepare for sticker shock starting Monday when a 25 percent sales tax kicks in.

The Oregon Legislature this year signed off on allowing medical marijuana dispensaries to sell recreational pot to anyone 21 and older. Those sales, which began Oct. 1, have been tax free. But that holiday comes to an end Jan. 4, when the state will impose a sales tax that extends until the end of 2016.

The Oregon Liquor Control Commission, the agency regulating the recreational marijuana industry, isn’t expected to open stores until late 2016. Once the liquor commission’s program is up and running, the 25 percent tax will be replaced with a permanent 17 percent sales tax.

You can check out Noelle’s article (linked to above) for some answers to frequently asked questions. The start of the sales tax in Oregon is bittersweet. On one hand, I like that tax revenues from marijuana sales are going to be going to schools and other areas that definitely need the funding. On the other hand, I feel that 25% is too high, and will no doubt result in some customers reverting to the black market. How do TWB readers feel? Is the tax too high? If it’s too high, what would a better tax rate be? Or do you feel that the tax rate is fine, and it won’t affect your buying habits?

About Johnny Green

Johnny Green is a marijuana activist from Oregon. He has a Bachelor's Degree in Public Policy. Follow Johnny Green on Facebook and Twitter. Also, feel free to email any concerns.
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  • Tom Alexander

    Oregon has no sales tax on anything else. Once again Cannabis has to be discriminated against to be accepted. That sucks!

  • Rogue Shark

    The sales tax does not necessarily mean a 25% increase in rec. weed prices. You should talk to some of the dispensary owners on how they will be adjusting their prices. Right now it is an ultra competitive market place in Portland for selling rec. weed and pricing will be a big factor for a dispensaries survival. Convenience and quality options are a big plus for consumers at dispensaries over cheaper black market parking lot transactions. I am sure the Vancouver shops will be watching closely to see where the Oregon prices settle intoq.

    • https://www.youtube.com/channel/UCJbhtQtPRiGdx_9X2XV4IOw ProLegalTreesGuy @ YouTube

      Couple things from me Rogue Shark:

      I preach on this one alot and have multiple videos on this one but please stop using the term ‘recreational’ Weed. When is the last time you heard anyone speak of going out the grab a ‘recreational’ beer? its bullshit and making us look bad. Please use the term “personal usage” for all adult usage as it is more palatable and doesn’t seem to imply that folks are only getting stoned like stupid stoners. Truly I’d say its best just to say “cannabis usage” without any label at all. Getting stoned is fine and all but we don’t need that negative perspective in the public mind as if that is all Cannabis usage is about. “medical only” is not real legalization and is a hypocritical lying scam.

      The other thing is that you are point blank wrong from the start that “The sales tax does not necessarily mean a 25% increase in rec. weed prices.” That is impossible. That 25% doesn’t have to translate visibly into the price of Cannabis. IF there is any tax or cost than whatever that tax or cost is shall be added to the cost of doing business and be automatically incorporated into the economic exchange. Therefore, even if the dispensaries ‘eat’ the cost keeping customer prices lower, than SOMEONE is still taking the economic hit and that will effect the whole system and Cannabis market by obvious economic direct connection. In extremis this would even put the dispensaries out of business or in economic hardship and thereby damage if not destroy the public market. 25% or 1/4 is ALOT! Why all you people are so perfectly comfy with getting fleeced with taxes is beyond be as you talk of it like it is nothing. I bet you don’t mind paying 1/3 of your income to the IRS either in Marxist federal ‘income’ taxes?
      Cracks me up that all the dolts in Ohio claiming to be PRO-Cannabis didn’t legalize Weed in 2015 because of economic bullshit reasons about ‘monopolies’ when all they had to do was amend it again in 2016 for Open Markets! Hell, thats just it, the ‘free markets’ ain’t so free Jack! You gotta pay to play! If it was FREE I could just start growing and dive right in to ANY market. All the over regulation of Cannabis and the implied price fixing is what is actually driving all of this and involuntary taxes are a part of that system.

      In theory this country could easily afford to totally legalize Cannabis even if it never saw a single tax cent from it! Anyone who denies that should start by explaining and fully justifying all the atrocious pure fucking EVIL the US government has been involved in for many generations and spends TRILLIONS and Hundreds of BILLIONS every year on total bullshit such as “the war on drugs” and “MK-ULTRA”, and dubious wars of imperialistic foreign interventions. and all the RATS in the RAT race can pay attention to is the cheese, or in this case WEED, right before their pathetic noses as they scwabble and fight over taxes on half-assed legal Pot. Talk about warped priorities and perspectives on what is right/wrong or proper for our government to be doing at all.

      ALL of our ails as a society and as a species largely proceeds from the fact that most people are unthinking cowardly fools if not are literally too stupid to even understand enough to become a real part of the political system other than a useful tool for the powers that be. THAT is the true foundation of ‘the war on drugs’ and all the half-assed bullshit legalizations that are actually lesser degrees of Marijuana prohibition. Taxes are one thing but as with all regulation, law, and taxes in a Free and Open society there are limits to how far such things may go before they become undesirable if not deadly. If a person is taxed involuntarily in Total more that 50% of their yearly income then it is an economic FACT that they are a slave and/or serf as 49% or less in business is not majority and therefor not economic ‘control’. This loss of economic control will translate into loss of political control as well. That is why the PRO-Cannabis community should favor low taxes if any on Cannabis and abolish bullshit regulation of it turning people into Felons for having too much like over an OZ in public. Funny, I don’t recall any alcohol laws about how I can have a 6 pack but not a 12 pack in public! A 25% tax on Cannabis sales is already half-way to slavery in that economic exchange scenario for whoever takes the 25% hit.

      • Denny

        How else are we going to pay for all of the free stuff the government gives away each year to people who not only expect it, they’re now demanding it…

      • Rogue Shark

        Yo, Mr. You Tube self promoter. All Oregon dispensaries are listed as Medical/Recreational. Seems like you need to self medicate/recreate and get your panties unbunched.

  • Mike Johnson

    I think this is where the rubber meets the road. As newness of the shop experience wears off, price, quality, selection and ease of purchase will all determine how the market fares. Those who have established good relationships with the black market will be the hardest to bring into the recreational stores. Price is the key and unless dispensaries are willing to absorb a good portion of this tax, they will lose customers. The 50 to 100% markup might have to be trimmed a bit.

    • https://www.youtube.com/channel/UCJbhtQtPRiGdx_9X2XV4IOw ProLegalTreesGuy @ YouTube

      With the No Vegetative state plant limit and No license Home Grow that Ohio will likely pass under the new FreeMarketOhio 2016 plan those shops will have to be trimming more than a ‘bit’! I favor Home Grown Organic Cannabis totally under my control.

      These stores wouldn’t be able to make such money if Marijuana were truly legalized as Tomatoes are but all the richies ever put on ballot initiatives are half-assed legalizations designed to rape and cripple Home Grow and over regulate the half-assed legal Cannabis market to drive up prices and continue to run government prison, fine, and forfeiture rackets off of their parasitic policies fleecing and controlling the public.

      I say Everyone should network as much as possible, Home Grow, and/or find a place to Home Grow. The dispensaries will have to be “overGrown” just like the governments of Earth have been for the Pro-Cannabis community to continue making forward progress toward the total legalization of Cannabis. Don’t get me wrong, I’m a dyed in the wool Capitalist and American Patriot and support private businesses Right to exist. At least now with half-assed legalizations cropping up everywhere We the People may Home Grow legally and therefore more easily and quickly “overGrow” the government pigs and Big Marijuana lobby over regulation and price fixing. Our political progress will continue to expand exponentially so long as people want Cannabis and Grow plenty of Home Grow. All their over regulatory and price fixing bullshit will be overcome eventually; I believe they will lose any semblance of control nor be able to effectively hinder our political progress once all North America or at least all USA has ‘legalized’ Marijuana.

      Consensual crimes among adults in an allegedly free and open society is a logical absurdity.
      Being Pro-Cannabis = Being Pro-Liberty and Justice for ALL

  • Mark

    Look what else Taxation and regulation of a plant has created …

    http://www.oregon.gov/oha/mmj/Documents/Rulemaking/333-008-mm-patients-growers-processors-dispensaries-proposed-text.pdf.

    Wow … A lot of new stuff for the medical marijuana community in Oregon …

  • billy james

    text us NOW….707 385 7950…….plannasd00@gmail.com qqwe

  • HighHo360

    Never under estimate the seduction of selection. People are willing to pay more legally to go into one place that has scores of options, vs meeting their guy and taking what he has. I work in a rec store in WA and the black market is hurting locally because people love having choices. And we’re getting hit with a 47% tax (still the most spendy stuff in my store is $15g/45 for 3.5g and 85 for 7g tax included)