While Oregon gets ready for the legalization of recreational cannabis on July 1, 2015, state legislators are contemplating making changes to how recreational cannabis will be taxed. Those who are behind the changes that will be made view it as a more workable solution that a harvest tax, but those in opposition view it as just another cash grab by politicians.
Under current law, recreational cannabis taxes would be paid by the producer at $35 an ounce. Yet amendments to two bills would effectively set the tax rate at 20% paid at the point of sale.
HB 2041 would allow towns to prohibit cannabis compounds within 1,000 feet of a school, and an amendment added to the bill would place 17% sales tax on retail cannabis products. HB 3400 would set rules and regulations for the implementation of recreational cannabis and the amendment to it would give law officials to levy a 3 percent sales tax if local voters allow it.
The 3% tax amendment is being used to help end a disagreement between state and local law agencies over the amount of power towns have to ban recreational and medicinal cannabis grow-ops. However the future obstacles over the issue may appear in court, this small compromise helps rid the issue for now.
The reason behind the actions of legislation is because they want to move far away from a harvest tax and toward a sales tax is to make it more simple to work with. Such as taxing at the point of sale, marijuana shop owners would possibly be allowed to distribute both recreational and medical marijuana without confusion.
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