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By Damian Mann Mail Tribune October 03. 2014 6:43PM Medford could adopt pot tax before election Medford officials are coming to grips with shifting political realities as they consider two possible ordinances that could create a local tax on marijuana. Medford City Council, which previously opposed medical marijuana dispensaries, will consider a proposed ordinance that would tax only recreational pot, which would be allowed if voters approve Ballot Measure 91 that makes the drug legal for those 21 years of age or older. A second ordinance has been drafted that would tax both recreational and medicinal cannabis. “We could have a tax on the books that could bring revenue for law enforcement and social services,” Councilor Daniel Bunn said. Bunn said the council is still not sure if it wants to tax medical marijuana, so it has asked the City Attorney’s Office to draft two proposed ordinances for consideration. “We could put the tax on both, or we could put the tax rate at zero,” he said. The tax rate under the proposed ordinance would be from 6 to 18 percent. Medford City Council is scheduled to hold a public hearing on the ordinance later this month and could adopt it prior to the Nov. 4 election. The city has previously balked at any efforts to allow stores to sell medical marijuana inside the city limits, declaring a permanent moratorium on pot dispensaries. While the city may seek to tax pot, Ballot Measure 91 already taxes marijuana at the state level, while language in the measure doesn’t allow local cities to impose their own taxes. Many local cities, including Ashland, Central Point and Gold Hill, have local taxes on marijuana. The Oregon Liquor Control Commission would have oversight over the sale of recreational cannabis. Peter Zuckerman, spokesman for the Yes on 91 campaign, said, “We don’t think these (local) taxes will survive.” However, he said he understands where cities are coming from in supporting a local sales tax to improve health. The measure has set a tax rate of $35 an ounce based on years of research. Even though the state collects the tax, Zuckerman said 35 percent of it will go to state and local police departments. Another 25 percent will go to drug treatment and mental health programs, and the remaining 40 percent will go to schools. Any additional taxes could open the door for black market sales of marijuana, he said. “We set the taxes at a rate that would discourage use by children and drive out the criminal market and raise money for essential services,” Zuckerman said. The main goal of the measure is to take marijuana out of the criminal system, he said. “A lot of money from marijuana sales is going to illegal dealers, gangs and cartels,” Zuckerman said. Medford and other cities hope the Legislature can change the measure to allow them to have their tax if it was in place prior to the measure's ratification by voters. The proposed ordinance would create a cumulative tax that would have a potential maximum of 18 percent that would be collected from producers, wholesalers, processors, retailers and medical marijuana facilities. Reach reporter Damian Mann at 541-776-4476 or [email protected]. Follow on Twitter at @reporterdm. http://www.mailtribune.com/article/20141003/NEWS/141009851 © 2015 Copyright © 1995-2011 Crain Communications Inc. All Rights Reserved. Terms of Use Privacy Statement -->