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Oregon’s Marijuana Laws <br /> <br />2016, the Legislature clarified that medical marijuana cardholders and caregivers will not have to <br />pay the state tax on the retail sale of marijuana items. (SB 1511, § 17) <br />Of that state tax revenue, 10 percent will be transferred to cities to “assist local law enforcement <br />in performing its duties” under the Control and Regulation of Marijuana Act, i.e. the law <br />6 <br />regulating recreational marijuana.That 10 percent will be distributed using different metrics <br />before and after July 1, 2017. Before that date, tax revenues will be distributed proportionately <br />to all Oregon cities based on their population. After July 1, 2017, those revenues will be <br />distributed proportionately based on the number of licenses issued for premises located in each <br />city. Fifty percent of revenues will be distributed based on the number of production, processor <br />and wholesale licenses issued in the city, and the other 50 percent will be distributed based on <br />the number of retail licenses issued in the city. However, if a city adopts an ordinance <br />prohibiting the establishment of any registered or licensed marijuana activities, the city will not <br />be eligible to receive state marijuana tax revenues. <br />Registration and License Types <br />Taking into consideration both the medical system and the retail system, there are 10marijuana <br />7 <br />activities that require registration or a license from the state.The table on the next page <br />provides a summary of each type of activity and its registration/licensing requirements along <br />with a citation to the laws that governs those activities. <br /> <br />6 <br />The remaining tax revenues will be distributed as follows: 40 percent to the Common School Fund;20 percent to <br />the Mental Health Alcoholism and Drug Services Account; 15 percent to the State Police Account; and 10 percent to <br />counties. <br />7 <br /> <br />This guide focuses on regulation of those activities. In 2016, the Legislature preempted cities from prohibiting or <br />otherwise limiting homegrown marijuana production, processing, and storage as described in ORS 475B.245 and a <br />medical marijuana patient and caregiver’s possession of seeds, plants, and usable marijuana as allowed under state <br /> <br />law. (HB 4014, § 33). <br />Local Government Regulation of Marijuana in Oregon League of Oregon Cities | 8 <br /> <br />May 2016 (Third Edition) <br /> <br />