Local marijuana Tax (Measure 2-96)

On July 18, 2016, the Corvallis City Council passed Ordinance 2016-12 concerning marijuana taxation and Resolution 2016-26 approving a referral to the voters, for the November 8, 2016 election, a tax on the sale of marijuana items by a marijuana retailer within the city.   According to results provided by Benton County Elections, the measure passed.  More information is provided below.

BALLOT TITLE 

CAPTION: 
2-96 Imposes city tax on marijuana retailer’s sale of marijuana items. 

QUESTION: 
Shall Corvallis adopt Ordinance 2016-12 imposing a tax on the sale of marijuana items by a marijuana retailer? 

SUMMARY: 
Under state law, the City Council may adopt an ordinance to be referred to the voters of the city imposing a tax on the sale of marijuana items in the city by a licensed marijuana retailer. Approval of this measure would impose a tax, set by resolution of City Council, not to exceed the maximum allowed by State law (currently three (3) percent) on the sale of marijuana items in the city by a marijuana retailer. The tax would be collected at the point of sale and remitted by the marijuana retailer. Under state law, a city that adopts an ordinance prohibiting the establishment of a medical marijuana processor, medical marijuana dispensary, or recreational marijuana producer, processor, wholesaler, or retailer may not impose a tax on the production, processing or sale of marijuana or any product into which marijuana has been incorporated. Currently, no prohibition ordinance is proposed, but if by an act of Council or an act of the voters, marijuana facilities were later banned, the tax rate would be set to zero (0). 

Carla Holzworth 
City Recorder

The ballot title was first published on City's website on July 21, 2016 and in the Corvallis Gazette-Times on Tuesday, July 26. No challenges were filed by the July 28, 2016 deadline.

On August 1, 2016, Measure number 2-96 was assigned by Benton County Elections. The completed Notice of Measure Election, which includes the explanatory statement, is available here.