A temporary 25-percent tax is now in effect for all recreational marijuana products sold at medical marijuana dispensaries through December 31st of this year. The tax is applied to the retail price of the recreational products. Dispensaries must list the retail price and total tax separately on each customer receipt.
“Dispensaries can set whatever price they choose for their products, but the price must be set up front and the law requires consumers be issued a receipt showing the price separate from the tax they’re paying,” said John Galvin, manager of the Marijuana Tax Program.
Right now, medical dispensaries are the only facilities authorized to sell retail marijuana products. Their sales are currently limited to flowers, leaves, immature marijuana plants, and seeds. Medical marijuana remains untaxed.
Dispensaries must register with the Department of Revenue before remitting payments or filing returns. This allows the department to create a tax account for them. About half the dispensaries publicly listed as recreational marijuana retailers with the Oregon Health Authority have not registered.
Payments are due monthly starting in February. Tax returns are due quarterly. Returns for the first quarter are due by May 2nd. Subsequent returns will be due at the end of the month following the end of the quarter.
On December 31st dispensaries must stop selling limited recreational marijuana products. After that date only retailers licensed through the Oregon Liquor Control Commission (OLCC) may sell retail marijuana products. OLCC started accepting license applications last week. Its goal is to begin issuing retail licenses sometime later in the year.
The permanent 17-percent sales tax rate on all retail marijuana products will take effect once a facility is licensed. Cities and counties can decide whether to adopt an additional local tax of up to 3 percent on retail sales. No portion of the collected taxes may be retained by the retail seller as compensation for the tabulation and delivery of those taxes to the state.
Visit oregon.gov/dor/marijuana for more information on the marijuana tax program.