OLCC unanimously votes to enact temporary cannabis retailer tax rules

PORTLAND, Ore. (KOIN) -- The Oregon Liquor and Cannabis Commission voted unanimously to enact new temporary rules Thursday requiring cannabis retailers to pay their taxes in order to renew or obtain a license.

Moving forward, cannabis retailers must prove that they're in compliance with taxes to stay in business which means they have to either be all paid up, be on a payment plan or have an active appeal with the Department of Revenue.

Those requirements are already standard for several other industries in Oregon, including BOLI labor contractors, DHS childcare agencies, lottery contractors, ODOT grant recipients and private security through the Department of Public Safety and Security.

This latest action came at the request of Governor Kotek last month, following continued media coverage and a KOIN 6 investigation into the cannabis retailer La Mota which had millions of dollars in tax liens.

Cannabis retailers have a higher delinquency rate than other industries at 9% versus 3%, respectively, according to the Department of Revenue. However, 18 cannabis retailers are currently on a tax payment plan.

The new rules go into effect Friday and will be in effect for the remainder of the year.

The rules are subject to change as the Department of Revenue and OLCC continue crafting permanent regulations.

"I think it's important for everyone to understand this is an ongoing process. It that it will simply not stop at the retail level," said Marvin Révoal, OLCC Chair. "It is important that if you're in the business in our sphere that you need to pay your taxes."