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Oregon Rec. Market Nets $60M in First Five Months of 2016

Oregon cannabis dispensaries have sold $60 million worth of recreational marijuana from the launch of 2016 through May 30, Eugene’s Register-Guard reports.

Lawmakers instituted the state’s temporary, early-access recreational cannabis marketplace last October. The state’s official recreational market is undergoing an extensive licensing process but should be fully functional by the end of 2016.

During its earliest months, Oregon’s recreational marketplace went untaxed; since January, however, recreational cannabis sales have been subject to a 25 percent excise tax. According to the Oregon Department of Revenue, the state had logged $14.9 million in recreational tax payments as of May 30, though about half of the state’s 319 dispensaries currently participating in the early recreational marketplace had as of last week failed to file their latest quarterly taxes.

“This is a new program, and some dispensaries are still learning about their tax obligations,” said John Galvin, who manages the Department of Revenue’s cannabis tax program. “We want them to be aware of what they need to do before they end up facing penalties for not filing or paying as they’re required,” Galvin said.

After the state’s official recreational marketplace comes online, the statewide excise tax will be lowered to 17 percent and localities will be allowed to vote for an additional 3 percent tax to help municipalities handle the regulatory costs of legal cannabis.

Oregon cannabis sales almost certainly spiked this month when on June 2 concentrates and edible products became available on the temporary recreational market.

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