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Home»Business & Industry»Oregon Cannabis Businesses Must Now Prove Tax Compliance Before Licensing Process
Business & Industry

Oregon Cannabis Businesses Must Now Prove Tax Compliance Before Licensing Process

May 19, 2023No Comments2 Mins Read
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Oregon Cannabis Businesses Must Now Prove Tax Compliance Before Licensing Process
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Oregon Gov. Tina Kotek (D) on Tuesday introduced that anybody looking for to open a hashish dispensary within the state might be required to show they’ve paid their state taxes earlier than receiving a license or having an present license renewed. 

Information from state Division of Income exhibits that hashish retailers have a better non-compliance price in Oregon for cost of taxes (9%) than different tax packages administered by the company (3%). The Oregon Liquor and Hashish Fee (OLCC) has indicated that there are roughly 823 licensees that would want to acquire the tax compliance certificates in any given 12 months. 

The change comes following reviews that embattled hashish firm La Mota was allowed to broaden throughout the state whereas owing greater than $1.5 million in unpaid state taxes. La Mota is the corporate that had employed former Secretary of State Shemia Fagan as a enterprise advisor. Fagan in the end give up the consulting gig and resigned as secretary of state.  

In an announcement, Kotek stated the brand new guidelines “will assist make sure that all companies are working below the identical guidelines and never getting any aggressive benefit in the event that they haven’t paid their taxes.”  

“I’m grateful to the present management on the OLCC and the Division of Income for working collaboratively to resolve this long-standing want for equal tax compliance throughout hashish and liquor sectors.” — Kotek in a press release   

Kotek is one in every of two authorities officers, together with Fagan, named in a letter despatched to U.S. Legal professional for Oregon Natalie Okay. Wight by two state lawmakers who’re asking Wight to open a proper investigation into corruption within the state capitol associated to marketing campaign donations from hashish operators within the state. The letter gives no proof of wrongdoing by the governor or others named within the report however claims the officers accepted “giant money (marketing campaign) donations” in extra of $10,000 from “federally unlawful drug operations.”   

In an announcement, Craig Prins, OLCC interim government director, described Oregon’s hashish trade as “vital to the state’s economic system.”  

“…The gross sales tax it generates is important to the state’s finances,” Prins stated. “That’s why it’s critically vital for us to get this group of licensees into compliance and paying their fair proportion.” 

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