Oregon Proposes Recreational Marijuana Licensing Fees

Recreational marijuana businesses in Oregon would have to fork over several thousand dollars annually in licensing fees under the latest draft of proposed rules covering the state’s adult-use program.

The licensing costs would come on top of local fees, leaving some cannabis entrepreneurs worried that they may not be able to survive the burden.

“I am afraid these fees, on top of the fees that localities are imposing, are putting prices too high, and pricing out mom and pop and hurting the ability of the regulated market to compete with the unregulated market,” Anthony Johnson – chief petitioner for Measure 91, which legalized recreational marijuana in the state – told the Oregonian.

Under the draft rules, marijuana growers serving the recreational market would have to pay either $3,750 or $5,750 annually for a license, depending on the size of the  operation. Processors, laboratories, wholesalers and retailers would have to fork over $4,750 annually for licenses.

Fees are listed on page eight of the 76-page rule proposal.

Fee revenue will be used to oversee Oregon’s recreational marijuana industry. The Oregon Liquor Control Commission’s proposed fees are based on estimates of how much it would cost to administer the program.

The commission must have rules in place before Jan. 4, 2016, when the state is scheduled to begin accepting license applications. It is scheduled to vote on the proposed rules Thursday.

If the commission doesn’t approve the current draft this week, it will have another opportunity to vote in November.

Other controversial regulations in the proposed draft rules include a ban on on-site consumption at licensed cannabis institutions, residency requirements for business owners and a rule outlawing the sharing of locations between medical marijuana facilities and recreational stores.

4 comments on “Oregon Proposes Recreational Marijuana Licensing Fees
  1. Karen on

    While I don’t disagree that the annual licensing fee may force smaller businesses out of the market, the cost is very, very low compared to other states. If a business owner does not have the ability and acumen to scale-up to cover under $6,000 if fees and whatever the local jurisdiction imposes, they probably can’t survive in a regulated business environment.

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    • Mark on

      Measure 91 was passed for “big business ” … Measure 91 will effectively destroy the small farm … The licensing fees are only a small part of the new hurtles … Proof of commercial water rights will be needed before applying for a producer permit … This will also be needed for medical grows that want to sell to dispensaries … Also you will need to be properly zoned to be a commercial farmer …

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  2. Ma Dang on

    I disagree that the tax will but anyone out of business, a 5% tax is lower than sales tax in other states (in Cali sales tax exceeds 10% in most areas) and less than the current rates charged for analysis of the product to ensure quality and public safety !
    If you can’t afford the tax, then you can’t afford the Electric bill or the water bill for indoors or the greenhouse or the security measures needed for outdoor growing.
    Two years ago, the fees just for OMMJ were $7K alone.
    Under the new rules a grower selling a lb of Cannabis for $1500.00 is taxed only $75.00. The wholesaler then turns it for $ 2000.00 in less than 90 days and pays $ 100.00 in taxes, while the Dispensary sells it at between $ 5 – 20 a gram and pays between 25 cents and $1 a gram based on sales price ! Remember, all businesses are regulated and fees associated with industries that have potential for abuses are there to midigate those abuses, think Alcohol and Tabacco. I am more concerned with the Federal income tax structure, Licence fees and regulations that will be coming and excise taxes that will be imposed, again think about the Pharmaceutical, Alcohol and Tabacco Industries, but unlike them you can just grow your own and avoid the whole slippery slope of big business, big government, the graying of the black market (selling to your friends) and barter!

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