Marijuana Sales Tax Vote
This November, residents of the City of Happy Valley will vote on Measure 3-496 which, if passed, would establish a three percent sales tax on recreational marijuana items purchased in Happy Valley. Below are a few frequently asked questions about this measure.
1. How much is the proposed tax?
The proposed tax would be 3 percent, or the maximum allowed by State Law, on the retail sale price of all marijuana items sold in Happy Valley.
2. Who would pay this sales tax, if approved?
Only individuals purchasing recreational marijuana from a licensed dispensary in the City of Happy Valley would pay the tax. The tax would be assessed and collected at the point of sale based on the retail sales price of the marijuana being purchased. Individuals who do not purchase recreational marijuana products would not be taxed. Marijuana items purchased through a medical marijuana dispensary would also not be taxed.
3. If the measure passes, how much revenue would the tax generate?
The revenues from this tax are estimated to be $30,000 per year and would go into the City’s general fund. While not earmarked, general fund dollars can be used to help the city enforce local marijuana regulations.
4. Would all marijuana products be subject to the tax?
If approved by voters, the tax would apply to all marijuana items purchased at a recreational marijuana dispensary (ORS 475B.345). Marijuana items include:
- Marijuana: Any part of the Cannabis family Cannabaceae plant or its seeds;
- Cannabinoid products: Cannabinoid edibles and any other product intended for human consumption or use, including projects intended to be applied to the skin or hair, that contains cannabinoids or dried marijuana leaves or flowers;
- Cannabinoid concentrates: Any substance derived by separating cannabinoids from marijuana, whether mechanically, chemically, or by other processes; and
- Cannabinoid extracts: Any substance derived by separating cannabinoids from marijuana, whether chemically or by other processes.
If a marijuana item is purchased through a medical marijuana dispensary, it would not be subject to the tax.
5. Are there any other sales taxes on marijuana?
The proposed 3 percent local tax would add to the 17 percent state sales tax already in place (for a total of 20 percent). Only a small portion of the statewide marijuana sales tax is distributed to local cities. If Measure 3-496 is approved, then all proceeds from the local tax would return to Happy Valley.
6. Are other cities voting on a local marijuana sales tax this November?
In addition to Happy Valley, the cities of Canby, Gladstone, Milwaukie, Molalla, Oregon City, and Sandy will also vote on local marijuana sales taxes. Clackamas County has referred a similar measure to the ballot, however if approved, the Clackamas marijuana tax would only apply to marijuana purchased in unincorporated Clackamas County.
7. Where are marijuana businesses allowed to locate in Happy Valley?
For the past several months, the Happy Valley City Council has evaluated numerous options for regulating where marijuana dispensaries may locate.
As a result, recreational marijuana dispensaries are largely limited to locations at the intersection of Sunnyside Rd. and 172nd Ave., and the junction of Hwy. 212 and Hwy. 242. Click here to see marijuana zoning on a map.
8. Where can I find out more?
The Council discussed the ballot measure on June 7 and formally referred the tax to the November ballot on July 19. Materials from each of these policy session meetings, along with audio recordings, are available at www.happyvalleyor.gov/city-hall/city-council/.
For more information about Happy Valley’s commercial marijuana regulations visit www.happyvalleyor.gov/marijuana
This information was reviewed by the Oregon Secretary of State’s Office for compliance with ORS 260.432.