Businesses

How marijuana taxes work

With voter approval, municipalities can enact a local tax of up to 3% to recreational marijuana sales in their area. The local tax is in addition to the 17 percent state tax.

Municipalities can enter into an agreement that allows us to administer th​e tax on their behalf. The table below shows all the Oregon municipalities where voters have approved a local tax and indicates whether we collect the tax on their behalf or if it's done at the local level.

If the municipality where your business is located has an agreement with us for tax administration, you would make your local tax payments the same way you make your state tax payments. You'll also include your local tax information on the quarterly return you file with us. For more information on your filing requirements, see our marijuana information page​.

If the municipality where your business is located doesn't have an agreement with us, you'll need to contact them directly to find out how to pay and file for the local tax. This doesn't change your payment and filing process and requirements for the state tax.

This list is current as of February 1, 2021.

Contact us

Marijuana Tax Program
PO Box 14630
Salem, OR 97309-5050

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