CITY COUNCIL ADOPTS TAX ON MARIJUANA SALES TO PRESERVE OPTION IF STATE BALLOT MEASURE PASSES IN NOVEMBER
News Release from City of Wilsonville
Posted on FlashAlert: September 30th, 2014 2:45 PM
WILSONVILLE, OR -- At the September 29, 2014, Wilsonville City Council meeting, the Council concluded a public hearing on Ordinance No. 748 and approved an amended version of the ordinance by a vote of 4 to 1 on second reading. The ordinance, which goes into effect on October 30, imposes a prospective tax on the sale of marijuana and marijuana-infused products in the City of Wilsonville.
The ordinance, which is similar to marijuana taxation ordinances passed recently by the cities of Ashland, Hillsboro and others, imposes a lower tax rate on medical marijuana than that imposed on recreational marijuana products. Prior to adoption, the Council amended the ordinance to increase the tax rates to be imposed from 5% to 7.5% for medical marijuana and from 10% to 12% for recreational marijuana and added a clause that allows the Council by resolution to establish a different tax rate for such products in the future.
City staff indicated that taxing marijuana may cause a reduction in the potential number of sellers in the Wilsonville area, with such sellers electing instead to operate in cities without such a tax.
With the effective date of the ordinance occurring before the vote and potential passage of a related state ballot measure that legalizes recreational marijuana products and preempts local taxation, the City Council action establishes the City's ability to impose a local tax on the sale of marijuana and marijuana-infused products.
The ordinance, which is similar to marijuana taxation ordinances passed recently by the cities of Ashland, Hillsboro and others, imposes a lower tax rate on medical marijuana than that imposed on recreational marijuana products. Prior to adoption, the Council amended the ordinance to increase the tax rates to be imposed from 5% to 7.5% for medical marijuana and from 10% to 12% for recreational marijuana and added a clause that allows the Council by resolution to establish a different tax rate for such products in the future.
City staff indicated that taxing marijuana may cause a reduction in the potential number of sellers in the Wilsonville area, with such sellers electing instead to operate in cities without such a tax.
With the effective date of the ordinance occurring before the vote and potential passage of a related state ballot measure that legalizes recreational marijuana products and preempts local taxation, the City Council action establishes the City's ability to impose a local tax on the sale of marijuana and marijuana-infused products.
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