HomeMy WebLinkAbout2016-02 Submitting Marijuana Tax to the Voters
RESOLUTION NO. 2016- 0),
RESOLUTION OF THE CITY OF ASHLAND TO SUBMIT TO THE
VOTERS AT THE NOVEMBER 8, 2016, GENERAL ELECTION AN
ORDINANCE ESTABLISHING A TAX ON THE SALE OF
RECREATIONAL MARIJUANA AND MARIJUANA-INFUSED
PRODUCTS IN THE CITY OF ASHLAND.
RECITALS:
A. The voters of the State of Oregon in November 2014 approved ballot measure 91, which
legalized the possession, cultivation and sale of marijuana by adults aged 21 and older.
B. The Oregon Legislature in its 2015 session approved House Bi11204 1, which gives
Oregon cities the right to impose a general sales tax of 3% on the sale of marijuana by
OL,CC-licensed retail outlets, if such tax is approved by the voters in a general election.
C. The Ashland City Council has approved an ordinance to impose such a tax and now seeks
voter approval, as required by Oregon law.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. The City Council submits to the qualified voters of the City the Question of
approving or rejecting "An Ordinance Establishing a Tax on the Sale of Marijuana and
Marijuana-Infused Products in the City of Ashland," as approved by the City Council on
February 16, 2016, and which shall become effective only upon its passage by the electorate.
SECTION 2. The City Recorder shall cause to be delivered to the Elections Officer of Jackson
County, Oregon, the attached Ballot Measure Notice, not later than 61 days prior to the elections.
The Election Officer is requested to give the electorate of the City notice that the election shall
be conducted by mail pursuant to Oregon law; and
SECTION 3. The City Recorder shall give notice of the election as provided in the laws of the
State of Oregon and the charter and ordinances of the City of Ashland.
SECTION 4. The ballot title for this measure is set forth in Exhibit A, attached.
SECTION 5. The City Attorney is authorized to alter the text of the ballot to comply with any
rules, procedures or practices of the Elections Officer of Jackson County to implement the
requirement of Oregon law.
The resolution is effective upon signing by the Mayor.
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PASSED and ADOPTED this A5 day of 2016:
A rll~ ~
Barbara Christensen, City Recorder
SIGNED and APPROVED "PHIS day oflo4o 2016:
T F
_ I
44n Stromberg, Mayor
Revi ed as to form :
David Lohman, Ci y Attorney
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EXHIBIT A
City of Ashland, Ballot Measure, November 8, 2016. General Election
Approval of an ordinance establishing a tax on the sale of recreational marijuana and
marijuana-infused products in the City of Ashland.
Caption:
Approving a 3% Ashland sales tax on recreational marijuana
Total 9 words (10 words permitted per ORS 250.035)
Question:
Shall Ashland voters enact a Council-approved ordinance establishing a 3% tax on
recreational marijuana sold by a licensed marijuana retailer?
Total 20 words (20 words permitted per ORS 250.035 20)
Summary:
The Ashland City Council approved an ordinance establishing a tax of 3% on the sale of
recreational marijuana and recreational marijuana-infused products by OLCC-licensed
retail outlets within the city limits. Under state law, this ordinance does not become
effective unless approved by the voters.
The 3% tax rate is the maximum a city can assess under state law. The tax applies only
to the sale of recreational marijuana and recreational marijuana-infused products in
OLCC-licensed retail outlets. It does not apply to sales of medical marijuana in
dispensaries licensed by the Oregon Health Authority. The local tax is over and above
the 17% state tax that will be applied to sales of recreational marijuana effective October
1, 2016.
Total 117 words (175 words permitted per ORS 250.035)
Explanatory Statement:
Passage of this ballot measure enacts an ordinance approved by the Ashland City Council
imposing a 3% tax on the sale of recreational marijuana and recreational marijuana-
infused products in OLCC-licensed outlets in the city.
The voters of the State of Oregon in November 2014 approved ballot measure 91
legalizing the possession, cultivation and sale of marijuana by adults aged 21 and older.
The Oregon Legislature in 2015 approved House Bill 2041 imposing a state tax of 17%
on recreational marijuana sales effective October 1, 2016 and giving Oregon cities the
right to impose a sales tax of up to 3% on the sale of recreational marijuana and
marijuana-infused products by OLCC-licensed retail outlets, if such tax is approved by
the voters in a general election. This tax revenue, if approved, would go into the City's
General Fund, which pays for services such as Police, Fire and Parks. These taxes apply
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only to recreational marijuana and not to medical marijuana, which is sold in dispensaries
licensed by the Oregon Health Authority.
It is unknown how much money would be generated by a local marijuana tax, as the tax
is dependent on the number of licensed retail outlets in Ashland, the price of the
marijuana sold and the volume of sales. The City's 2015-17 biennial budget includes a
placeholder figure of $1,000 for marijuana tax collections, with the money going to the
City's General Fund.
Result of a "No" Vote
If this measure does not pass, Ashland will be unable to impose a tax on the sale of
recreational marijuana and recreational marijuana-infused products at OLCC-licensed
retail outlets in the City at this time. The 17% state tax would continue to be imposed
after October 1. 2016.
Total 288 words (500 words permitted per ORS 246.150, 251.305 & 251.325 500)
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