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The city council must adopt an ordinance repealing its earlier ordinance which prohibited one or more of the six activities listed above, and that ordinance of repeal must be referred to the voters at a statewide general election, meaning an election in November of an even-numbered year. The general election date for 2016 is November 8. The next available election date to opt in will be November 6, 2018. As soon as the council adopts the ordinance, it must submit it to the Oregon Health Authority (OHA) for medical marijuana activities and the Oregon Liquor Control Commission (OLCC) for recreational marijuana activities. Those agencies will beginregistering and licensing on the first business day of the January immediately following the date of the statewide general election. This date was chosen to provide an opportunity for cities and counties to adopt local time, place or manner restrictions, business license ordinances and forms and to take other action required to address issues and concerns relating to the addition of marijuana businesses in the city. LOCAL TAX Can my city tax recreational marijuana? Yes, as long as the city has not adopted an ordinance under ORS 475B.800 prohibiting marijuana activities in the city. Under ORS 475B.345, cities may imposeup to a 3 percent tax on sales of marijuana items made by those with recreational retail licenses by referring an ordinance to the voters at a statewide general election, meaning an election in November of an even-numbered year. Can my city tax medical marijuana? It is unclear whether a city can tax medical marijuana. ORS 475B.345 provides that authority to “impose a tax or fee on the production, processing or sale of marijuana itemsin this state is vested solely in the Legislative Assembly,” and a city may not adopt or enact ordinances imposing a tax or fee on those activities except for the 3 percent tax on recreational activities discussed above. The legal question is whether that section applies to medical marijuana. Cities interested in taxing medical marijuana should work closely with their city attorney. My city enacted a tax on medical and recreational marijuana before ORS 475B was enacted. Can we continue to impose that tax now? The status of taxes enacted prior to ORS 475B is an open question. ORS 475B.345 provides that, except as provided by law, the authority to “impose” a tax or fee on the production, processing or sale of marijuana items is vested solely in the Legislative Assembly, and a city may not “adopt or enact” ordinances imposing a tax or a fee on those activities. Arguably, cities that have already adopted or enacted a tax prior to the effective date of ORS 475B.345 are grandfathered in. However, the issue is not free from doubt, and cities that decide to collect on pre-ORS475B345 taxes should be prepared to defend their ability to do so against legal challenge. Consequently, cities that plan to continue to collect taxes imposed prior to the passage of ORS475B.345 should work closely with their city attorney to discuss the implications and risks of that approach. My city requires all businesses to obtain a license and pay a fee. Does that fee count as part of the 3 percent tax or fee that the city can impose under HB 3400? Frequently Asked Questions About Local Regulation of Marijuana 6 May 24, 2016