Jackson County won't tax marijuana — yet

Mail Tribune (Medford, OR — Wayback)

2018-11-21

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The Jackson County Board of Commissioners voted unanimously Wednesday not to tax medical or recreational marijuana — for now. Too many unknowns remain about whether local jurisdictions can impose their own taxes on marijuana, commissioners said. "No pun intended, but until the smoke clears we should be cautious," said Commissioner Rick Dyer. During a special election in March, county voters approved a tax of up to 25 percent on marijuana and tasked commissioners with setting the actual tax rate. Commissioners had referred the issue to voters. But the local tax could conflict with a statewide measure approved by Oregon voters in 2014 that legalizes recreational marijuana starting July 1, imposes a state tax and bans local jurisdictions from adopting their own taxes on recreational marijuana. Conflicting bills are moving through the Oregon Legislature that could do anything from authorize local taxes to ban them, said County Administrator Danny Jordan. He pointed out Jackson County's local tax is on both recreational and medical marijuana, while the state measure bans only taxes on recreational marijuana. Many cities and counties raced to adopt their own marijuana taxes before the state measure goes into effect in hopes those local taxes would be grandfathered in. If Jackson County began collecting a marijuana tax now, it could face litigation that could cost more than revenue brought in from the tax, Jordan warned. "To proceed slowly doesn't hurt anyone," said Commissioner Colleen Roberts. The county doesn't have an estimate of how much a local tax could bring in, especially since it is still developing regulations that would govern the number and locations of medical marijuana dispensaries allowed in unincorporated areas of the county. Cities have worked out their medical marijuana dispensary rules, and the Oregon Liquor Control Commission is forming recreational marijuana rules. By waiting to impose a tax, county officials will get a better idea of how much marijuana is sold locally, impacts from increased pot use and potential revenue, Dyer said. Oregon officials estimate a state tax on marijuana will yield $17 million to $40 million annually. The state measure legalizing recreational marijuana allocates 40 percent of the revenue to schools, 20 percent for mental health services and drug and alcohol treatment, 15 percent for state police, 20 percent for local law enforcement and 5 percent for the Oregon Health Authority. Commissioner Doug Breidenthal said he doesn't believe shared state marijuana tax revenue will be enough to cover negative impacts to the county from increased drug use. He said local taxpayers shouldn't be stuck with the added costs. "Our property taxes shouldn't subsidize recreational marijuana," Breidenthal said. County officials have worried more drug use could boost crime, addiction and child neglect, adding to the burden on the Jackson County Sheriff's Department, courts and county social and mental health services. Marijuana supporters have said legalizing pot could reduce costs for law enforcement and the criminal justice system. Staff reporter Vickie Aldous can be reached at 541-776-4486 or [email protected] . Follow her on Twitter at www.twitter.com/VickieAldous .