Portland Moves Forward With Tax On Marijuana Sales

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Portland City Council passed a possible 10 percent tax on the sale of recreational marijuana should voters pass Measure 91, which would legalize recreational pot.

The council members said they didn’t want to pursue a tax on medical marijuana.

“I very much support the use of medical marijuana,” said Commissioner Amanda Fritz. “I think this is a prudent measure to act on this now.”

Nearly 50 Oregon cities and one county are considering or have already passed local ordinances that would place a tax on the sale of recreational marijuana.

Many have adopted Ashland’s ordinance, which the city first passed in July. The local law would tax the sale of recreational marijuana at 10 percent and medical marijuana at 5 percent. But some towns are enforcing higher taxes to keep pot shops out of city limits, up to 25 percent.

It’s possible that the rush to pass local tax laws could prove to be a waste of time. If the marijuana legalization measure passes, the state will assume sole taxing authority — meaning local taxes would be invalid.

Section 42 of Measure 91 says: “No county or city of this state shall impose any fee or tax … in connection with the purchase, sale, production, processing, transportation, and delivery of marijuana items.”

And Section 58 emphasizes: “(State law) shall be paramount and superior to and shall fully replace and supersede any and all municipal charter enactments or local ordinances inconsistent with it.”

Hermiston stands alone in positioning itself against a pot tax. At its Monday city council meeting, the town’s city manager urged the council not to pursue the tax because it could open the door for future lawsuits, as reported by the Eastern Oregonian.
 
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