Oregon cannabis businesses might owe $15.7 million in back state taxes

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Some Oregon marijuana business owners – hit with falling prices and slim margins – are struggling to pay state taxes on their sales.

According to Eugene TV station KVAL, 176 marijuana businesses owe the Oregon Department of Revenue $15.7 million in unpaid taxes.

Oregon’s revenue department says at least 10 businesses owe more than $600,000 each in back taxes. The total of unpaid taxes has gone up $3 million since July, the TV station reported.

Here’s what you need to know:

  • The Oregon Liquor Control Commission (OLCC) can’t revoke licenses because of late tax payments. That authority falls on the state’s revenue department.
  • OLCC acknowledged the problem isn’t easily fixed by pulling a license because halting a company’s operations will make it difficult for the firm to pay the back taxes, KVAL reported.
  • Daniel O’Connor, who runs Portland marijuana retailer Vessel, told the news outlet the oversupply of cannabis in Oregon strained his profits, but he said “paying our taxes on time will definitely help normalize it because there’s just going to be less stigma.”