It’s been a minute since we wrote concerning the new OLCC tax compliance guidelines for retailers. These short-term guidelines require all retailers to certify tax compliance by way of the Oregon Division of Income (DOR) as a way to renew or switch possession of a marijuana retailer license. OLCC has a reasonably good FAQ sheet here, as a part of its common overview web page on the topic here.
The short-term rule has been in impact for transfers in possession since June 16, 2023. (Transfers in possession are outlined as possession modifications of 51% or extra.) We’ve handled a couple of tax compliance points in these conditions already, together with individuals scrambling to wash up their dashboards forward of sale. For retail license renewals, the short-term rule has been in impact solely since September 15, 2023. We had one retailer consumer journey on this new requirement already, which is type of superb because the rule actually took impact on Friday.
From this week’s expertise, I’ve some excellent news to share. OLCC seems keen, as a matter in fact, to permit any retailer who has utilized for however not but obtained a certificates of tax compliance (“DOR Certificates”) to proceed to function beneath short-term authority, at the very least by means of the 30-day late renewal window. I’d like to emphasise the “has utilized for” bit in that final sentence. Additionally, it’s value mentioning that retailers (and their applicant house owners) mustn’t wait till the eleventh hour to submit DOR Certificates functions. We’re studying that the method isn’t at all times fast or straightforward– significantly if a person or entity is in arrears and angling for a fee plan with DOR.
One other merchandise of word is that these conditional letters are mechanically generated. They’re despatched inside 24 hours of renewal fee and submission to the e-mail deal with related to a licensee’s account. Because of this, I imagine the conditional letters don’t point out tax compliance or lack thereof, as of this writing. (I haven’t really seen one recently.)
So what ought to last-minute consumers take note? Nicely, anybody approaching a license renewal deadline ought to: 1) guarantee all DOR Certificates functions are submitted nicely earlier than the license expiration deadline (together with requisite functions of any “applicant” house owners); and a couple of) attain out to their OLCC investigator (i) with proof of any and all required DOR submissions, and (ii) to substantiate all the things that I’m saying is true. I’m not your lawyer. (Most likely. And if I’m, you must nonetheless attain out.)
In order that’s my PSA on a couple of finer factors on this newest program provision. Within the greater image, my colleague Jesse Mondry requested again in Might: “How Many Retailers Will Shut As a result of Governor Kotek’s New Tax Compliance Missive?” At that time, DOR reported that 9% of licensed cannabis retailers, or round 75 licensees, hadn’t absolutely paid their taxes. I’m guessing these numbers will drop a bit with OLCC now starting to implement this new rule— even with a little bit of wiggle room being afforded to sure licensees.
Lastly, please word that this stays a dynamic space. As I lately defined, the tax compliance guidelines are short-term in nature: OLCC will undertake everlasting guidelines this fall. The everlasting guidelines might evolve in any variety of methods, together with by requiring non-retail licensees to point out tax compliance. Watch this house.