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THE DAILY ASTORIAN • THURSDAY, APRIL 21, 2016
420 surprise:
Oregon pot tax
revenue higher
than expected
Banking woes easing for
some legal pot businesses
By KRISTENA HANSEN
and GENE JOHNSON
Associated Press
By PARIS ACHEN
Capital Bureau
SALEM — Oregon’s Department of
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“Weed Day” Wednesday by announcing
another better-than-predicted return in rec-
reational marijuana revenue.
The state collected $6.84 million in taxes
from sales of recreational pot in January
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a 25 percent tax on the product took effect.
Tax collections exceeded state economists’
projection of $2 million to $3 million for
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The revenue represents nearly $27.4 mil-
lion in sales by about 320 dispensaries since
Jan. 4. Beginning Oct. 1, medical marijuana
dispensaries were authorized to sell up to a
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to anyone 21 or older under Oregon Health
Authority’s early start program. No tax was
collected on the product until Jan. 4. Medi-
cal marijuana remains tax-exempt.
The 25 percent tax ends when the Ore-
gon Liquor Control Commission takes over
the recreational sales program later this
year and will be replaced with a 17 percent
tax.
It’s unclear how much of the tax revenue
will be distributed to schools, drug, alcohol
and mental health services, state police and
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state’s legalized marijuana law, Measure
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startup and regulatory costs associated with
recreational marijuana before determining
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ries. Distribution is scheduled to begin in
late 2017.
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iday for smoking pot. The term — 420 —
was coined by a group of high school stu-
dents from San Rafael, California, who had
a smoke-out in 1971 in the Point Reyes for-
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timing of the revenue department’s report
on tax revenue Wednesday was uninten-
tional, said department spokeswoman Joy
Krawczyk.
The Capital Bureau is a collaboration
between EO Media Group and Pamplin
Media Group.
SALEM — In a once-empty
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created a mini-fortress.
Recently hired workers sit behind
bulletproof glass at a window inac-
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cers brought out of retirement roam
the building with handguns on their
hips. Security cameras monitor the
hallways.
The changes, paid for with a $3.5
million budget and prompted by the
state’s newly legal marijuana indus-
try, are similar to those that Colorado
and Washington made for accept-
ing huge cash payments of pot taxes
from businesses historically blocked
from banking.
Such security arrangements are a
necessity for safety reasons, but new
statistics suggest that could be start-
ing to change.
Federal data show that the num-
ber of banks and credit unions across
the country willing to handle pot
money under Treasury Department
guidelines issued two years ago has
jumped from 51 in March 2014 to
301 last month.
More than three years into Wash-
ington’s legal pot experiment, a large
majority of businesses are paying
taxes electronically, a sign of better
access to bank accounts. The state
is even poised to require electronic
payments unless the shops can show
a good reason to pay in cash.
“People don’t call me anymore
and say, ‘I’m opening a new business
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said Robert McVay, a Seattle mari-
juana business attorney.
Illegal under federal law
Marijuana’s prohibition under
federal law still presents a serious
hurdle for pot-related businesses,
which generally can’t accept credit
or debit cards due to card companies’
fears about liability for money laun-
AP Photo/Kristena Hansen
A Cash Transaction Unit, a high-security operation with bul-
let-proof payment windows set up specially for marijuana busi-
nesses paying their monthly taxes in cash, is installed in a retro-
fitted office space at the Oregon Department of Revenue.
dering or other offenses.
Many legal pot shops in Wash-
ington state, Colorado and Oregon
— the only states with legal recre-
ational sales so far — and dispen-
saries in medical marijuana states
keep ATMs on site to facilitate cash
transactions.
Most banking access has been
through local credit unions, which
limits options for the businesses. It’s
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some have been able to by putting up
real property, rather than inventory,
as collateral.
Two years ago, the Treasury
Department gave banks permission
to do business with legal marijuana
entities with conditions, including
trying to make sure the customers
are complying with regulations.
Under the guidance, banks must
review state license applications for
marijuana customers, request infor-
mation about the business, develop
an understanding of the types of
products to be sold and monitor pub-
licly available sources for any nega-
tive information about the business.
With that in mind, Washing-
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activity of licensed marijuana grow-
ers, sellers and processers online —
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issued to businesses caught out of
compliance.
Easier for banks
The idea was to make it eas-
ier for banks or credit unions to dis-
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illegal activity; such information is
not posted online in Oregon or Colo-
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provide a breakdown of how many
pot businesses pay their taxes in
cash.
Only two credit unions ser-
viced Washington’s legal marijuana
industry early on — Seattle-based
Salal and Spokane-based Numer-
ica — but now several others have
followed suit, and even big banks
seem more tolerant of pot-related
accounts, McVay said.
Last December, only 10 per-
cent of sales and business tax pay-
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Three-quarters of businesses pay-
ing special pot taxes to Washington’s
Liquor and Cannabis Board in the
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tronically or by check, according to
the state.
No one is suggesting that states
do away with their beefed up security
arrangements or new cash-counting
machines just yet.
Oregon, for instance, has col-
lected $6.84 million from the pot
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exceeding expectations for the entire
year — and more than half of the
state’s pot dealers paid that in cash.
Of the $15 million-plus Washing-
ton collected from marijuana sales
in February, roughly a quarter, or
nearly $4 million, was cash car-
ried through the lobby of the liquor
board’s headquarters in Olympia.
Volumes of cash
Oregon isn’t set up yet to accept
electronic payments, and the Depart-
ment of Revenue is even planning
to build out a bigger, permanent site
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volumes of pot cash. Washington,
however, is moving in a different
direction.
Language tucked into a budget
deal Washington lawmakers reached
last month allows the liquor board to
require tax payments in electronic
form, though it’s unclear how soon
it might do that.
Calling it a “public safety con-
cern,” board spokesman Brian Smith
said the agency wants to reduce the
amount of cash coming through the
lobby.
The marijuana industry remains
eager for a federal solution to their
banking problem, and many hope
that if California legalizes the recre-
ational use of marijuana this Novem-
ber it might put enough pressure on
Congress to change laws.
“Some sanity has to be brought into
this banking issue,” said Beau Whit-
ney, an industry economist in Port-
land who handles government affairs
for a local dispensary. “At some point
in time, this is going to be an industry
that’s going to be too big to ignore.”
Woman at scene of heroin overdose sentenced
also had multiple Later, she was arrested for
Peterson said.
baggies of meth and identity theft that occurred
Astoria Police
a small black-and- between November and Feb-
responded to a room
white
polka-dot ruary. In January, she was
at the Rivershore
bag belonging to caught driving a GMC pickup
Motel last August
Shufelt. The bag truck without the owner’s
and found Shufelt,
contained a digital consent. She failed to appear
who was six months
scale, four unused in court in February.
pregnant, uncon-
Defense lawyer Kirk Win-
carbon dioxide can-
scious from a her-
By KYLE SPURR
isters, two keys on termute said Saranpaa was
oin overdose. She
The Daily Astorian
was transported to Lacey Saranpaa a key ring, a bro- hesitant to admit she had a
ken marijuana pipe GUXJSUREOHPZKHQWKH\¿UVW
The 20-year-old woman Columbia Memorial
and four small bag- met.
who was arrested last year in Hospital where she
“I don’t think she is hesitat-
connection to the heroin over- was pronounced dead along gies of meth, according to the
ing any longer,” Wintermute
police report.
dose death of a woman and her with her unborn child.
Prior to the incident, said. “We know pretty clearly
Shufelt was in the room
unborn child was sentenced
Wednesday in Clatsop County with Saranpaa and a 54-year- Saranpaa was arrested for there is a serious issue.”
Her issues are not just with
old man, who was not charged stealing more than $100
Circuit Court.
worth of merchandise from her own addiction, Winter-
Lacey Saranpaa, of Astoria, with any crimes.
A detective on scene Goodwill in Warrenton. mute said, but with not having
will serve 90 days in jail with
credit for time served and three noticed a beer can that had
years probation. If she violates been cut in half in a trash can.
probation, she will face more The bottom half of the can
was missing. Drug users com-
than four years in prison.
OLNEY TEENAGE CLUB
She pleaded no contest to monly use the bottom of cans
OLNEY
GRANGE REUNION
unlawful delivery of metham- to heat up drugs before inject-
phetamine for having the drug ing or inhaling them, accord-
Saturday, April 23rd
and drug paraphernalia in her ing to the detective. When
purse at the scene of the over- the detective asked Saran-
POTLUCK LUNCH AT 1 PM
dose. The Clatsop County Dis- paa if he could look inside
QUESTIONS: Curt. 503-325-0003
WULFW $WWRUQH\¶V 2I¿FH ZDV her purse, she pulled out the
unable to prove Saranpaa was other half of the beer can and
Olney Grange Hall
the one who provided 35-year- a syringe, which gave prob-
Highway 202
old Torae Shufelt, of Astoria, able cause to arrest her. She
with drugs.
She also pleaded no con-
th
test to identity theft, unautho-
rized use of a vehicle, theft
and failure to appear in court
Assistance League® the Columbia Pacifi c’s 9 th Annual
from other incidents dating
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“She is very intelligent, very
forceful and really wants to
make a positive change.”
Judge Philip Nelson,
who oversees the coun-
ty’s drug court, said Saran-
paa is an ideal candidate.
He ordered that she enter
the drug court program
immediately following her
release from jail.
“I’m just ready to do this,”
Saranpaa said.
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good role models in her life.
Her father, Bryce William
Saranpaa, died two years ago
as a passenger in a car crash
where the driver was high on
meth and was later sentenced
to six years in prison.
Her brother, Cody Michael
Saranpaa, was convicted four
years ago for delivery of meth
and heroin.
“She is a smart young
woman,” Wintermute said.
Astoria Golf &
Country Club
Senator
Betsy Johnson
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