Oregon marijuana dispensaries’ tax deadlines approach

The clock is ticking for marijuana dispensaries to register to pay their recreational pot sales taxes. According to the Oregon Department of Revenue, many dispensaries are taking their time to register.

Starting in January, dispensaries were required to add a 25 percent sales tax to the retail price of all recreational marijuana products.

The taxes that were collected in January are due to the state by the end of February. But in order to pay, dispensaries first must register with the Department of Revenue, which more than 100 dispensaries have failed to do, at last report.

More than one-third of Oregon dispensaries have not yet registered to pay the sales taxes that are due by the end of the month. Government officials worry that taxes raised to fun schools and police will not be received in time.

Ronald Cook, member partner of Cannabend in Bend, said Monday he was puzzled by that.

“We’re not sure why they would wait. It’s been clearly communicated to us that we were supposed to do it,” Cook said.

The state Department of Revenue is asking dispensaries for their cooperation.

“All they need to turn it right now is their registration forms so we can set up their account, then by the end of the month they need to remit the taxes they collected on their products,” said Joy Krawczyk, public information officer for the Oregon Department of Revenue.

The agency also requires dispensaries to issue a receipt to every customer, showing the retail price and tax paid.

Cook said Cannabend clearly labels their bud bars and receipts, so customers know what they are paying for.

The 25 percent tax is temporary and lasts through the end of the year. The tax will be distributed to numerous public services, including schools, mental health and treatment programs, and Oregon State Police.

The OLCC plans to issue licenses to retail marijuana facilities in late 2016. If the dispensary receives a license, the sales tax paid will drop to 17 percent. Then the city or county can also place a tax of up to 3 percent, making the total tax 20 percent.

Although it’s a small savings, Cannabend customers say they are looking forward to the lower sales tax.

Visit www.oregon.gov/dor/marijuana for more information on the marijuana tax program.