Oregon Cities Pushing for Power to Tax, Ban Cannabis Sales

Just Released! Get realistic market forecasts, state-by-state insights and benchmarks with the new 2024 MJBiz Factbook member program, now with quarterly updates. Make informed decisions.

As it was originally passed last November by Oregon voters, Measure 91 legalizes recreational marijuana and allows the state to tax cannabis sales.

But a lawmaker has introduced a bill that would grant local governments the right to tax rec marijuana as well, which would likely raise the price of cannabis for consumers and could make it harder for retail stores to compete with the black market.

The bill would also let municipalities ban recreational marijuana sales on their own without having to win over the majority of local voters in a ballot measure, as is stipulated under Measure 91, according to The Oregonian.

Recreational marijuana in Oregon will have a flat $35 per ounce state tax, but cities and counties want to tack on another 10-15% sales tax.

The fight over taxes has been brewing for months. Many Oregon cities began enacting taxes on recreational marijuana sales in advance of the November election, in the hopes that the taxes would be grandfathered in. And last November, the Oregon Leagues of Cities vowed to push this very issue at the state Capitol.