Deschutes County may get marijuana tax revenue under bill passed by Oregon House

SALEM, Ore. (KTVZ) -- Deschutes County could once again become eligible to receive marijuana tax revenue under a bill passed Tuesday by the Oregon House.

HB 3295 A, introduced by Rep. Jason Kropf (D, Bend) and sponsored by Rep. Jack Zika (R, Redmond) ensures that counties that participate in Oregon’s marijuana economy receive a share of marijuana revenue.

Marijuana tax revenue has not been paid to the county by the Department of Revenue since 2019, when county commissioners passed an ordinance to cap new producer and processor licenses. 

Under the ordinance, which voters approved last November, existing businesses can continue to operate, and new retail and wholesale licenses can still be approved.

Since August, 2019, licensed marijuana businesses in Deschutes County have generated more than $100 million in sales, according to Oregon Liquor Control Commission records.

“Deschutes County participates significantly in Oregon’s marijuana economy without receiving its share of marijuana revenue. That’s not the way it’s supposed to work,” said Rep. Kropf. “HB 3295 A would resolve this unintended outcome moving forward.”

“Deschutes still has cannabis businesses, it’s only fair we should receive funds for safety and addiction services,” said Rep. Zika.

HB 3295 A passed the House by a vote of 51-8 and now heads to the Senate for consideration.