Marijuana retailers in Oregon must adhere to new regulations by becoming tax compliant or forfeiting their business licenses, as per the latest guidelines, according to a report by KLCC.
Additionally, the aforementioned requirement now extends to cannabis businesses seeking a change of ownership.
Effective from September 15th, cannabis enterprises are required to maintain a favorable standing with state tax collectors to ensure license renewal, says KLCC. This may entail settling any outstanding taxes or establishing a payment arrangement.
The Oregon Liquor and Cannabis Commission’s (OLCC) Recreational Marijuana Program spokesperson, Mark Pettinger, noted that businesses are grappling with payment difficulties due to narrow profit margins and limited banking access.
Pettinger emphasized the primary objective of encouraging compliance among these businesses, aiming for partial or full payments to be made, reported KLCC. He further clarified that these regulations are intended to be temporary, with plans for revision later this year, incorporating feedback from local cannabis advocates.
As Global Cannabis Times reported in February, the OLCC’s 2023 Recreational Marijuana Supply and Demand Legislative Report found the state’s cannabis supply again surpassed demand for another year. The commission said the imbalance has put Oregon’s recreational marijuana market in “arguably the weakest economic position it has been in since the inception of the program in 2016.”
According to the Oregon Department of Revenue, the cannabis industry exhibits the lowest level of tax compliance among all business sectors in the state. Approximately 9% of the sales tax revenue owed remains uncollected.