Jackson County Marijuana Producers and Sellers Tax, Measure 15-133 (March 2015)

Voting on Marijuana
Ballot Measures
By state
By year
Not on ballot
Local Local marijuana Local marijuana tax

A Jackson Marijuana Producers and Sellers Tax, Measure 15-133 ballot question was on the ballot for voters in Jackson County, Oregon, on March 10, 2015. It was approved.

This measure gave the Jackson County Board of Commissioners the authority to impose a retroactive marijuana tax in the county, with that tax potentially applying from December 1, 2014, onward. The actual tax rates would be set by the board in any given year, with the maximum rates provided by Measure 15-133.

Measure 15-133 established the following maximum taxes on marijuana producers and retailers:

• $35/ounce on marijuana flowers
• $10/ounce on marijuana leaves
• $5 for every immature marijuana plant

The measure established exemptions for those growing marijuana solely for personal use.

Ballots for this all-mail election were mailed on February 20 and were due back on March 10, 2015.

The first collection of taxes imposed by Measure 15-133 was designed to take place on April 1, 2015.

Aftermath

No tax in first year

An order to set the first year's Measure 15-133 tax at zero was drafted by county officials, and the board of commissioners unanimously approved the proposal on April 15, 2015.

County Commissioner Doug Breidenthal explained that there were just to many unknown variables surrounding the tax of marijuana and the marijuana industry to make a good decision about the appropriate tax rate. These variables included:

• pending state legislation providing more specific rules about marijuana and marijuana taxation, resulting in possible conflict with the county's provisions
• litigation threatened against any tax imposed by the county
• an unknown number of marijuana producers and retailers

Commissioner Rick Dyer said, "No pun intended, but until the smoke clears we should be cautious."

Breidenthal said, concerning anticipated state law, "We don't want to do something and have them reverse it." He also said that postponing the tax would give the county a chance to see if the tax was necessary, as the state could provide the county with a share of state tax revenue. Breidenthal remained skeptical that the state would give enough tax revenue to cover county costs, however. He said, "There are more costs to the county than what's being accounted for. It would not cover the true financial impact to Jackson County."

About the unknown number of marijuana operations, County Administrator Danny Jordan said, "We don't have an inventory of really what we're going to tax."

Debate over legality of local taxes

In 2014, state voters approved Measure 91, legalizing recreational marijuana according to state law. Measure 91 included provisions prohibiting local government agencies from taxing marijuana production or sales. A debate followed in Oregon over whether these provisions will hold up against the efforts, both in court and at the ballot box, of local jurisdictions to tack on local marijuana taxes. Some argue that the measure cannot, while staying true to Oregon's history and laws, prevent local taxes. In Jackson County, proponents of Measure 15-133 hoped that, by making the tax retroactive and approving it before Measure 91 goes into effect on July 1, 2015, they could grandfather in some local tax revenue.

In fact, many local jurisdictions — as many as 70 according to the Government Executive — passed local taxes as soon as Measure 91 was approved, or even before the initiative was decided. This has motivated Measure 91 proponents protest, arguing that the state should honor the intention of Measure 91 and keep cities and counties from imposing local taxes on marijuana. The situation has also pushed state lawmakers to propose solutions. Some have considered the idea of boosting the amount of state tax revenue that goes to cities and counties. Measure 91 was designed to give 10 percent of revenue to local governments. Meanwhile, Sen. Jackie Winters (R-10) introduced Senate Bill 542, which would amend Measure 91 to explicitly give local jurisdictions the right to tax marijuana.

Election results

Jackson County, Measure 15-133
Result		Votes	Percentage
a Yes		29,176	62.93%
No		17,189	37.07%

Election results from Jackson County Elections Office

Voting on taxes
Ballot measures
By state
By year
Not on ballot
Local City taxes County taxes School taxes Property taxes Sales taxes Income taxes Other taxes

Text of measure

Ballot Question

The question on the ballot:

“

Shall Jackson County impose taxes on producers and sellers of medical and non-medical marijuana in unincorporated areas of Jackson County?

”

Ballot summary

The official summary of Measure 15-133:

“

If approved, the measure would impose taxes on producers and sellers of medical and non-medical marijuana. The tax would apply to unincorporated areas of Jackson County. The amount of tax levied on sellers of medical or non-medical marijuana products would be up to 25%, set by the Board of Commissioners. The tax would be on the gross sale amount paid to sellers by individuals purchasing marijuana products. The amount of tax levied on producers of medical or non-medical marijuana would be: • $35 per ounce on marijuana flowers; • $10 per ounce on marijuana leaves; and • $5 per immature marijuana Cannabis plant. The tax on producers would not apply to: • An individual who has been issued a registry identification card by the OMMP producing medical marijuana solely for their own consumption; and • An individual producing non-medical marijuana solely for their own consumption. The Jackson County Treasurer will be responsible for administering the collection of the tax. The Measure is effective retroactive to December 1, 2014, with collection of the taxes beginning April 1, 2015.

”

Reports and analyses

Explanatory statement

The following statement was provided to explain Measure 15-133:

“

In 1998, the voters of the State of Oregon passed the Oregon Medical Marijuana Act making the use of medical marijuana legal. Currently Jackson County has the second highest number of Oregon Medical Marijuana Program (OMMP) patients in the state. On November 4, 2014 voters of the State of Oregon passed Ballot Measure 91, making the production, processing, sale and use of non-medical marijuana legal. On November 5, 2014 the Jackson County Board of Commissioners held a legally noticed public hearing on, and subsequently adopted an amendment to the County’s Codified Ordinance. The Ordinance adopted Chapter 866, entitled “Taxation of Production and Sale of Medical and Non-Medical Marijuana.” Pursuant to the Home Rule Charter of Jackson County, Oregon, any ordinance adopted by the Board of Commissioners imposing a tax must receive approval of the voters of the County before taking effect. Therefore, on November 5, 2014 the Board of Commissioners called for a special election on March 10, 2015 and authorized a Measure to be placed on the Ballot to approve the addition of Chapter 866, entitled “Taxation of Production and Sale of Medical and Non-Medical Marijuana” to the Codified Ordinance of Jackson County. If the Ballot Measure does not pass, Chapter 866 will not go into effect. If approved, Chapter 866 applies to and provides for the following: • A list of definitions including but not limited to: marijuana, medical and non-medical marijuana, process, produce, retail sale and tax. • The tax only applies to producers and sellers of medical and nonmedical marijuana in the unincorporated areas of Jackson County. • The tax on producers would not apply to: • An individual who has been issued a registry identification card by the Oregon Medical Marijuana Program producing medical marijuana solely for their own consumption; and • An individual producing non-medical marijuana solely for their own consumption. • Sellers of medical or non-medical marijuana would be taxed up to 25 percent, set annually by the Board of Commissioners via Board Order. The tax would be on the gross sale amount paid to sellers by individuals purchasing medical and non-medical marijuana products. • The tax levied on producers of medical and non-medical marijuana would be: • $35 per ounce on marijuana flowers; • $10 per ounce on marijuana leaves; and • $5 per immature marijuana Cannabis plant. • The tax imposed on producers will be calculated based upon the weight of the marijuana flowers or marijuana leaves or the number of immature Cannabis plants at the time: • Of transfer of the marijuana flowers, marijuana leaves or immature Cannabis plants to another person for any purpose; or • When the producer of medical marijuana processes the marijuana flowers, marijuana leaves or immature Cannabis plants. • The Jackson County Treasurer will be responsible for administering the collection of the tax. • If the Ballot Measure is approved the tax on medical and non-medical marijuana will be retroactive back to December 1, 2014. • Collection of the taxes would begin on April 1, 2015.

”

Related measures

Statewide

• Oregon Legalized Marijuana Initiative, Measure 91 (2014)

See also

• Local marijuana on the ballot
• Local marijuana tax on the ballot
• Jackson County, Oregon ballot measures
• March 10, 2015 ballot measures in Oregon

External links

Suggest a link

• Jackson County Government website

Additional reading

• Mail Tribune, "Jackson County won't tax marijuana — yet," April 15, 2015
• Oregon Live, "No local taxes on retail marijuana: Editorial Agenda 2015," February 7, 2015