Marijuana retailers will need to obtain a certificate of tax compliance before renewing their licenses starting September 15.
Under new rules, marijuana retailers in Oregon must become tax compliant or surrender their business licenses.
Starting September 15, cannabis businesses will need good standing with state tax collectors in order to renew their licenses. This could require returning unpaid taxes or entering a payment plan.
Starting now, this requirement also applies to any cannabis businesses filing for a change of ownership.
The cannabis industry is the least tax-compliant business sector in Oregon, according to the Oregon Department of Revenue. The state said it hasn’t received nine percent of the sales tax revenue it is owed.
Mark Pettinger is the spokesperson with the Oregon Liquor and Cannabis Commission's Recreational Marijuana Program. He said businesses are struggling to pay because of slim profit margins and limited access to banking.
“The first effort is to try to get those businesses complying, so that they're making at least some payments, if not making payments in full," said Pettinger.
Pettinger said these rules are designed to be temporary. Later this year, the OLCC will revise them with input from local cannabis advocates.
For more Cannabis News like this, circle back to 420intel.com!