Follow the Money
Unanswered questions hang in the air
around Eugene's proposed pot sales tax
BY S A R A S A C K S
C
ontrary to Oregon’s generally retail-tax-
free-and-proud lifestyle, Eugeneans pay
sales tax on four common purchases: alco-
hol, tobacco, gasoline and pot.
Since recreational pot sales went legit
last year, Oregonians pay a whopping 25 percent state
sales tax on recreational marijuana.
Ballot Measure 91, the bill that originally approved
the sale of recreational marijuana, creates the Oregon
Marijuana Account and allots percentages of the taxes
from marijuana sales to the Common School Fund; men-
tal health, alcohol and drug abuse treatment programs;
state and local law enforcement; and the Oregon Health
Authority.
Come 2017, the state tax drops to 17 percent, and
Eugene then has the option to levy an additional three
percent local tax — meaning consumers could wind up
paying a combined 20 percent tax on their bud purchases.
This local tax is due for the ballot in November, when
Eugene voters will approve or deny the initiative.
Eugene joins Portland, Salem, Bend and a list of other
Oregon cities in considering a local tax.
“We’re even late to the conversation,” says Eugene City
Councilor Claire Syrett, who recently proposed the vote.
Syrett says even a small local tax on recreational mari-
juana could help heal a city still limping along after the
recession that started almost 10 years ago.
“During the recession in particular we had to make
some pretty hard choices,” Syrett says. As always, prior-
ity went to Eugene’s fire and police services, while depart-
ments like the Parks and Open Space Division bore the
brunt of the city’s austerity measures.
Even still, City Councilor George Brown gives the pro-
posed tax a thumbs-down, calling it a “sin tax.” Brown ar-
gues that it will push some consumers back to the black
market. Furthermore, taxing pot, Brown says, plays on
the continuing and misguided social stigma that surrounds
marijuana use.
Syrett says she didn’t propose this tax in order to target
anyone specifically. She urges recreational marijuana users
to “feel as if they’re contributing to something positive.”
Projections for yearly revenue from the local tax are all
over the board. The city's estimates start at $200,000. But
according to a cannabis industry representative with whom
Syrett spoke, the city could rake in $1 million annually,
she says.
Brown’s other concern is that it’s currently unclear
how the tax money will be spent. Unlike with Measure
91, the proposed marijuana tax does not specify revenue
distribution. What’s more, local law does not require tax
revenue to be spent on programs relating to the object of
taxation.
Mayor Kitty Piercy is in favor of the council’s deci-
sion to call for a vote but, like Brown, wants a clearer idea
of where the money would go.
The tax “needs to be clearly dedicated to specific com-
munity needs and purposes and held accountable, so that
the public can clearly know what it will pay for,” Piercy
says.
City councilors did not have time before their summer
recess to hammer out the distribution of funds, Syrett tells
EW. As it stands, revenue would flow directly into Eu-
gene’s General Fund, in the event that voters approve the
tax. The city would then have complete discretion over
the revenue, regardless of what voters want.
If the bill passes, the tax will go into effect January
2017, and will be on the books permanently. At that point,
the Eugene City Council could propose amendments spe-
cifically detailing the allotment of revenue.
Proposed sales taxes are typically a non-starter in Ore-
gon, but neither Brown nor Syrett would venture to guess
which way the wind will blow this November.
We provide
safe access to medicine
with the information
you need to make
empowered decisions
about your well-being.
Welcome to
The Greener Side
Eugene’s Oldest Dispensary
keepeugenegreen.org
1553 Oak St. Eugene, OR
(541) 345-8904
M-F 9am - 10pm • Sun 11am - 8pm
do not operate a vehicle under the influence of this drug - for use by adults 21 years of age or older - keep out of reach of children
For use by adults 21+. Do not drive or operate machinery under the influence of
Marijuana.
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A ugust 18, 2016 • eugeneweekly.com