Following unanimous decision by the Portland City Council yesterday, city voters will decide this November whether or not to embrace a 3% tax hike on recreational cannabis products, KOIN 6 News reports.
There is a 25% statewide sales tax currently in effect, but that will drop to 17% beginning January 1. After that point, local municipalities across Oregon will have the option of adding a 3% local tax for up to a 20% total tax rate. This November’s ballot measure, if successful, would earmark the money for the city and keep it from entering the general fund.
The move was proposed by Commissioner Amanda Fritz, who said it could raise up to $3 million each year. According to Fritz, the extra tax money would go towards drug and alcohol treatment, public safety, and supporting small Portland businesses.
“There’ll be a robust conversation at council about, are these the right items to dedicate it to? There’s been some suggestions to not dedicate it at all or to put it to something that’s not related to marijuana use, and I think the taxes work best when there’s a clear nexus between the people who pay and the people who benefit and to make sure that that’s fair,” said Fritz.
Oregon does not tax the sales of medical cannabis.
Get daily news insights in your inbox. Subscribe