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Oregon Will Hit Recreational Users With a 25% Tax Starting Monday

Recreational marijuana consumers in Oregon should prepare for sticker shock starting Monday when a 25 percent sales tax kicks in.

The Oregon Legislature this year signed off on allowing medical marijuana dispensaries to sell recreational pot to anyone 21 and older. Those sales, which began Oct. 1, have been tax free. But that holiday comes to an end Jan. 4, when the state will impose a sales tax that extends until the end of 2016.

The Oregon Liquor Control Commission, the agency regulating the recreational marijuana industry, isn’t expected to open stores until late 2016. Once the liquor commission’s program is up and running, the 25 percent tax will be replaced with a permanent 17 percent sales tax.

Meanwhile, Oregon Department of Revenue officials said Tuesday they are prepared to deal with the influx of large cash sums from dispensaries paying the new tax. Cameras have been added, employees have received training on security and a new “cash handling location” has been set up to accept large payments. [Read more at the Portland Oregonian]

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