Salem, OR—The year is just starting, but for many who sold recreational marijuana in October, November or December, there are already tax obligations they need to fulfill.
For medical marijuana dispensaries that were selling recreational marijuana products under the temporary early start provisions—which ended December 31—their final returns and tax remittances are due by January 31. For retailers who were licensed by the Oregon Liquor Control Commission (OLCC) during fourth-quarter 2016, their first returns are also due by the end of January. Dispensaries will file their final returns on paper, but retailers are required to file electronically using Revenue Online at www.oregon.gov/dor
Many businesses will be responsible for filing two returns for the fourth quarter: one on paper, and one online.
Businesses making payments in cash should schedule their payment appointments as soon as possible, as there are a limited number of appointments available throughout the month, and those for the end of the month tend to fill up quickly.
Additionally, with the end of early start, the permanent state tax rate of 17 percent is now in effect for all recreational marijuana sales, and those sales can only be made at licensed retail facilities. Consumers in many areas throughout Oregon may see an additional 3-percent local tax added to their recreational marijuana purchases.
The majority of municipalities with this additional local tax are entering into agreements authorizing the Oregon Department of Revenue to collect local marijuana taxes on their behalf. This will determine how businesses file and remit their local taxes. If the Department of Revenue is collecting for the municipality, businesses will file one quarterly return and make one monthly remittance for both state and local taxes. If the municipality is handling their own collections, businesses will have to work with the local government to determine local filing and remittance requirements. They'll still be responsible for filing and remitting state taxes as required by the Department of Revenue.
For more information about state and local recreational marijuana taxes, visit www.oregon.gov/dor/marijuana
or contact the Department of Revenue's Marijuana Tax Program by phone at (503) 947-2597 or email at marijuanatax.DOR@oregon.gov
. For questions about licensing for recreational marijuana retailers, visit the Oregon Liquor Control Commission's (OLCC) website at www.oregon.gov/olcc/marijuana
Joy Krawczyk, Public Information Officer