Marijuana tax program
Important updates
Electronic payments for marijuana tax deposits
The Department of Revenue is pleased to accept electronic payments for monthly marijuana tax deposits on Revenue Online. You can now pay your monthly deposit by logging into your Revenue Online account and selecting “Make a payment.” For answers to common questions, please look at the Payment and Filing Section Below.
Social distancing policies for in-person payments
In-person marijuana tax payments at the Salem Revenue building require an appointment. Please call
503-945-8050 to schedule your appointment.
**Due to the limited number of appointments available at the end of every month, we suggest scheduling your payment appointment for as early in the month as possible.
Licensed retailers
Retailers licensed by the Oregon Liquor and Cannabis Commission (OLCC) are required to charge a retail sales tax of 17 percent for all recreational marijuana sold. In some cases, retailers must also charge customers an additional 3 percent for Oregon localities. The Oregon Department of Revenue is collecting local marijuana taxes on behalf of many cities and counties.
Read more about local taxes.
Paying your Taxes
OLCC-licensed marijuana retailers must make monthly payments to the department of the tax collected from customers. Currently, you can pay electronically by savings or check account pay by cash, check, or money order. Make sure to complete a Marijuana Tax Payment Voucher and include it with your payment.
Filing quarterly tax returns
In addition to making monthly payments, OLCC-licensed marijuana retailers must electronically file quarterly tax returns through Revenue Online. If you have questions, check out our tips for online filing. Note: The monthly payment vouchers you submit with your payments do
not take the place of your quarterly filing.
Payment and return deadlines
*These dates represent the first business day after the listed due date. In each case, the expected due date falls on a weekend.
Registering with DOR
All OLCC-licensed marijuana retailers need to
register with the Oregon Department of Revenue as marijuana tax collectors to open their marijuana tax account. This must be completed when your business receives its retail license from OLCC. You will need to complete a separate registration for each marijuana retail location approved by OLCC.
If you have received your retail license number and will not be opening your retail location immediately, you are still required to register with DOR and may list a future date under "Recreational Start Date."
A marijuana retailer must notify the department in writing if the status of the marijuana retailer changes, including, but not limited to, ownership changes, address changes, or ceasing operations. If a retailer has been issued a new OLCC license number, the business should notify the marijuana tax program.
To register with us, you may do so electronically through Revenue Online or by downloading
Form OR-MTR and instructions, and emailing it to marijuanatax.dor@dor.oregon.gov.
Paying and filing
Retaining administrative costs
Retailers may retain 2 percent of the 17 percent state tax for administrative costs. Localities may or may not allow retailers to retain administrative costs. Please refer to our local tax guide for a list of DOR administered localities and their associated administrative rates.
Locality taxes
Depending on where your business is located, many municipalities passed a 3 percent local tax. Many municipalities have chosen to have the Department of Revenue administer their local tax. If the department is
administering your municipality's tax, the quarterly return available on Revenue Online will calculate your state and local taxes automatically. You will need to include both your state and local taxes with your payment.
If the department is not administering your municipality's local tax, you will need to contact your municipality to determine how you will be filing and paying the tax.
Product categorization
To assist retailers in completing their quarterly marijuana tax returns, the department and OLCC have put together a categorization guide that illustrates which marijuana items in Cannabis Tracking System products falls under each specific tax category. Please refer to this guide if you have questions about how to classify certain items. You may also review our rule, OAR 150-475-2100.
Revenue Online
Once you become licensed with OLCC and register with us, you'll receive an introductory letter with information on signing up for a Revenue Online account. Because Revenue Online is a secure application, you'll need to validate your account before you can access your tax information.
Licensed retailers can file quarterly returns and more with a Revenue Online account. With a Revenue Online account, you can also:
- Add a power of attorney to your account
- Send us secure messages directly
- Check your account balances
- Make payments using a checking or savings account
If you have multiple store locations, you will not need to create new Revenue Online accounts for each. Your ROL will allow you to access and file returns for each of your marijuana accounts.
Electronic payments for marijuana tax deposits
Here are some common questions and answers for making electronic payments for Marijuana Tax deposits.
Q: Where can I make an electronic payment?
A: Revenue Online. You can access it here. Once you log into your account you will select “Make a payment” and select Marijuana Tax for the account type.
Q: What information will I need to make a payment?
A: You will need your financial institution account number and routing number. These can be found at the bottom of a blank check or with your financial institution.
Q: Do I need to wait until the due date to make a payment?
A: No, you can make a payment at any time with this new option. You can even schedule a payment in advance.
Q: Can I pay by debit/credit card?
A: No, we have a different service provider for processing credit/debit payments.
Q: Can I pay electronically if I do not have a Revenue Online account?
A: Yes, you can make a payment without logging in under “Quick Links,” however you will need to provide more information when making a non-logged in payment. You will need the FEIN of the business and legal business name. You will also need to provide a phone number and email address as well as the account number and routing number of the financial institution from which you will be making the payment. This information will not be saved, and you will need to re-enter it each time you wish to make a non-logged in payment.
Information for consumers
If a retailer charges a consumer an incorrect amount of marijuana tax, the consumer may be entitled to a refund. The consumer must provide a written request to the marijuana retailer requesting return of the excess tax payment and provide a receipt identifying the date of purchase and proof of payment of excess tax. This request must be mailed or delivered to the retailer within 30 days of the date of the excess tax payment. If the retailer fails to provide a refund, please contact the department at marijuanatax.dor@dor.oregon.gov.
Distributions
Where do your collected tax dollars go?
We'll use marijuana tax revenue to cover our costs for administering the tax. The state also uses the money to pay for OLCC's enforcement costs,
and beginning July 1, 2018 the Oregon Criminal Justice Commission's Illegal Marijuana Market Enforcement Grant Program.
Measure 110
As of January 1, 2021 funds collected in excess of $11.25 million quarterly are directed to measure 110, the Drug Treatment and Recovery Services Fund.
After that, every quarter $11.25 million in state tax revenue will be distributed as follows:
- State School Fund: 40 percent
- Oregon Health Authority, for mental health treatment or for alcohol and drug abuse prevention, early intervention, and treatment: 20 percent
- State Police: 15 percent
- Cities: 10 percent
- Counties: 10 percent
- Oregon Health Authority, for alcohol and drug abuse prevention, early intervention, and treatment services: 5 percent.
How local marijuana taxes work
With voter approval, municipalities can enact a local tax of up to 3 percent 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 the tax on their behalf. The table below shows all the Oregon municipalities where voters have approved a local tax and have signed agreements for the Department of Revenue to collect the tax on their behalf.
If the Department of Revenue doesn't collect a tax for your municipality, you may still have a local tax obligation. Contact your municipality for details on how to file and pay those taxes. Otherwise, use this table to fill in box 7 and box 9 on the calculation worksheet (form OR-MT-CALC).
This table lists the tax rates and administrative fees (if applicable) for municipalities that have entered into agreements with the Department of Revenue for paying local tax. Check the Department of Revenue local marijuana tax website for updates to this list.