Bill raises pot tax limit from 3% to 10%


By Oregon Tax News,

Oregon’s state senators who want to let local governments cash in on cannabis sales approved a measure allowing cities and counties to raise the existing 3 percent tax as high as 10 percent. Senate Bill 854 gained bipartisan support in the Senate chamber with Democrats supporting it 14-3 and Republicans 8-3. The bill must pass the House and obtain Gov. Kate Brown’s signature before it becomes law.

Ontario city officials first asked lawmakers to increase the tax limit so they can have more money to deal with thousands of people from Idaho crossing the state line to buy marijuana, which is illegal in Idaho. City officials elsewhere also noted increased costs for public safety and other government services.

A measure approved by voters last fall cut the share local governments received from the state’s 17 percent cannabis sales tax.

Oregon voters legalized cannabis in 2014.