NORTHWEST
East Oregonian
Page 2A
Friday, November 23, 2018
Pot tax revenue grows as consumption booms
By CLAIRE WITHYCOMBE
Capital Bureau
SALEM — Oregonians
are buying more legal pot
than expected.
That means they are also
poised to pay more taxes on
it — about $12.5 million
more in the current budget
than state economists pro-
jected several months ago.
The average price of a
gram of cannabis on the
retail market has dropped
from about $10 in late 2016
to just above $4 in mid-2018,
according to state figures.
But tax collections con-
tinue to grow.
Altogether, Oregon con-
sumers are projected to pay
$176 million in state mari-
juana taxes during the cur-
rent budget cycle, which
ends in mid-2019.
“Since Oregon lev-
ies its recreational mari-
juana tax based on the price
of the product, the fact that
actual tax collections have
exceeded expectations is all
the more impressive given
the ongoing drop in prices,”
state economists said in a
revenue forecast report last
week. “For every ounce
sold, or every edible pur-
chased, Oregon is receiving
less tax revenue per item due
to the price decline.”
Staff photo by E.J. Harris
Kind Leaf was the first marijuana store to open its doors in Pendleton. This photo
was taken on June 21, 2017.
Wholesale prices have
also decreased in that period,
but less dramatically.
Consumers are turning
away from other sources,
like the black market and
medical marijuana, and
toward recreational retail,
state economists say.
And more Oregonians are
using cannabis, according to
the forecast.
Nationally, the Substance
Abuse and Mental Health
Services
Administration
says the percentage of adults
who report using marijuana
in the past month has grown
to 7.9 percent in 2017, com-
pared with 6.5 percent in
2015.
In August, recreational
marijuana consumers bought
more than $52.5 million
worth of cannabis, accord-
ing to the Oregon Liquor
Control Commission, which
tracks sales data.
The OLCC says in that
month alone, recreational
and medical consumers
in Oregon bought at least
16,000 pounds of usable
marijuana, about 400,000
units of edibles and tinctures
and more than 600,000 units
of marijuana extracts and
concentrates.
State economists say
that the spate of local mea-
sures passed in November to
allow cannabis in certain cit-
ies and counties aren’t likely
to nudge tax collections up
further, though.
Six cities voted to allow
recreational marijuana, four
of them repealing existing
bans. Nearly 30 measures
related to marijuana were on
local ballots this November.
“In terms of recent elec-
tions, the places today vot-
ing on (marijuana) are all
small and won’t have that
much of an impact on state-
wide sales,” said state econ-
Forecast for Pendleton Area
TODAY
SATURDAY
SUNDAY
MONDAY
TUESDAY
Mostly cloudy,
afternoon showers
Partly sunny
Mostly cloudy
Considerable
cloudiness
Cloudy, chance of
a little rain
49° 36°
47° 28°
PENDLETON TEMPERATURE FORECAST
45° 31°
45° 39°
51° 41°
HERMISTON TEMPERATURE FORECAST
51° 37°
50° 28°
45° 31°
42° 37°
OREGON FORECAST
52° 42°
PENDLETON
through 3 p.m. yest.
HIGH
LOW
TEMP.
Olympia
50/40
46/33
47/25
Longview
Kennewick Walla Walla
49/36
Lewiston
51/40
53/34
Astoria
52/41
Pullman
Yakima 46/26
49/36
50/35
Portland
Hermiston
51/40
The Dalles 51/37
Salem
Corvallis
51/36
Yesterday
Normals
Records
La Grande
44/31
PRECIPITATION
John Day
Eugene
Bend
52/37
49/26
45/31
Ontario
44/32
Caldwell
Burns
44°
24°
47°
32°
73° (1974) 6° (2013)
24 hours ending 3 p.m.
Month to date
Normal month to date
Year to date
Last year to date
Normal year to date
Albany
51/37
Trace
0.01"
0.84"
6.46"
8.56"
8.12"
WINDS (in mph)
44/32
40/16
Trace
0.10"
1.03"
8.25"
14.70"
11.02"
through 3 p.m. yest.
HIGH
LOW
TEMP.
Pendleton 43/29
52/37
24 hours ending 3 p.m.
Month to date
Normal month to date
Year to date
Last year to date
Normal year to date
HERMISTON
Enterprise
49/36
47/38
52°
27°
46°
31°
71° (1933) -5° (1985)
PRECIPITATION
Moses
Lake
50/34
Aberdeen
42/29
41/30
Tacoma
Yesterday
Normals
Records
Spokane
Wenatchee
50/40
Today
Boardman
Pendleton
Medford
54/37
Sat.
SW 6-12
SSW 7-14
WSW 6-12
WSW 6-12
SUN AND MOON
Klamath Falls
47/27
Forecasts and graphics provided by AccuWeather, Inc. ©2018
Sunrise today
Sunset tonight
Moonrise today
Moonset today
7:05 a.m.
4:17 p.m.
5:08 p.m.
7:20 a.m.
Last
New
First
Full
Nov 29
Dec 6
Dec 15
Dec 22
NATIONAL EXTREMES
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By AUBREY WIEBER
Oregon Capital Bureau
A conservative think tank is suing two
Oregon labor unions, saying they are col-
lecting union dues in violation of a U.S.
Supreme Court decision last June.
The class-action lawsuit, Anderson et
al. v. SEIU et al, was filed on Wednesday
in U.S. District Court in Portland.
In June, the Supreme ruled in Janus v.
AFSCME that forcing all employees to
pay dues and fees when they aren’t union
members under “fair share” provisions
violated the First Amendment.
The decision was considered by some
to be a strong blow for organized labor.
But in Oregon, where unions have deep
roots, the effect has been minimal. Some
union leaders reported an increase in
membership.
In the months since, thousands of
workers in Oregon have asked to with-
draw from the unions, according to Aaron
Withe, Oregon director of Freedom Foun-
dation, which filed the case this week.
About one-fourth was told they could
withdraw from their unions, but would
have to pay dues through an extended
date set by the labor contract. According
to the lawsuit, most have about another
year to pay.
Freedom Foundation is contesting that
extended assessment.
Withe said that since they signed the
agreement without knowing about the
Janus decision, those agreements aren’t
valid.
Freedom Foundation sued on behalf
of 10 plaintiffs, but claimed in the filing
there are hundreds more.
Plaintiffs who were assessed by Ser-
vice Employees International Union
Local 503 include Loriann Anderson, an
employee of Western Oregon University;
Rene Layton, an employee of the Wal-
lowa County District Attorney’s Office;
Dennis Richey, an employee for Jackson
County; and Melinda Wiltse, who works
for Marion County.
Plaintiffs represented by American
Federation of State, County and Munici-
pal Employees Council 75 are Kerrin Fis-
cus, employed by the Oregon Board of
Parole; Kenneth Hill, employed by the
Oregon Military Department; Michael
Miller, employed by the Oregon Depart-
ment of Corrections; Bernard Perkins,
who works for Lane County; Kathie Sim-
mons, employed by the city of Portland
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Circulation Manager:
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vide detailed regional data
on marijuana sales taxes.
“Many areas only have
a few businesses operat-
ing within their limits,” Joy
Krawczyk, a spokeswoman
for the tax agency, said in
an email. “Providing infor-
mation about how much
was collected in that area —
along with the use of other
publicly-available informa-
tion or knowledge held by
one of the other taxpayers in
that area — could allow for
the determination of specif-
ics of individual tax returns.”
Disclosing the particulars
of a return is illegal, Kraw-
czyk said.
In the years to come, col-
lections from recreational
marijuana are likely to grow,
although there are signif-
icant risks attendant with
the marijuana industry, state
economists said.
A significant possible
downside: cannabis remains
illegal under federal law,
leaving the industry open to
risk in the event of a federal
crackdown. Oregon U.S.
Attorney Billy Williams has
expressed concerns about
the illegal shipment of Ore-
gon marijuana across state
lines. Williams also believes
the state is producing far
more cannabis than its resi-
dents can consume.
Freedom Foundation
takes its latest shot at
Oregon unions
ALMANAC
Shown is today’s weather. Temperatures are today’s highs and tonight’s lows.
Seattle
omist Josh Lehner in an
email to the Oregon Capital
Bureau. “It’s not like there is
another big population juris-
diction out there that has yet
to legalize, I don’t think.”
Lehner said certain cit-
ies and counties could actu-
ally see declines in mari-
juana tax revenues now that
more of them have voted to
allow recreational marijuana
within their boundaries.
“The border effect of
where sales are legal and
how consumers access them
is important,” Lehner said.
“So a neighboring town may
see some losses as more
towns legalize.”
Recreational marijuana
retailers must charge a 17
percent state tax on sales.
Cities and counties can
charge local taxes of up to
3 percent on sales, too, but
state economists focus their
projections on state mari-
juana taxes.
Sales to consumers with
medical marijuana patient
cards aren’t taxed.
The tax money, minus
administrative costs, goes to
a dedicated state marijuana
account that in turn goes
to K-12 education, mental
health services, police and
cities and counties.
The
state
Revenue
Department couldn’t pro-
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and Kent Wiles, who works for North-
West Senior and Disability Services.
The suit names the two unions, the
employers and Katy Coba, the director of
the Oregon Department of Administrative
Services, as defendants.
Both unions declined to comment, as
did the Oregon Department of Adminis-
trative Services.
Withe said the Freedom Foundation
found the plaintiffs by helping workers
opt out of their unions, and offering legal
services to those still told they had to pay
dues.
Peter Starzynski, executive director
of the Northwest Accountability Proj-
ect, said filing the lawsuit the day before
Thanksgiving when people are less likely
to be at work was purposeful. The North-
west Accountability Project is a pro-union
organization aimed at shedding light on
right-wing organizations.
“Their litigation tactics are as political
as anything else they do,” he said.
The accountability group has long
dealt with the Freedom Foundation,
Starzynski said.
“The Freedom Foundation is a politi-
cal organization that is trying to destroy
unions in the northwest on behalf of
their out-of-state billionaire funders,”
Starzynski said. “Part of their strategy is
to file frivolous lawsuits to try to waste
unions’ time and money.”
But Withe said this isn’t about destroy-
ing unions, it’s about exposing union
tactics.
“I think this is just a money-making
scheme by the unions,” he said.
While the class-action suit only has 10
members, Withe said the Freedom Foun-
dation has helped 6,500 Oregonians opt
out of their union.
Reporter Aubrey Wieber: aubrey@
salemreporter.com or 503-575-1251.
Wieber is a reporter for Salem Reporter
who works for the Oregon Capital
Bureau, a collaboration of EO Media
Group, the Pamplin Media Group, and
Salem Reporter.
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