Oregon is one of the most over-produced states in the nation, and the marijuana industry in the Beaver State isn’t helping the situation. It has more than enough weed and a surplus of it – but no one is sure how to manage it. There are two potential solutions. Oregon should consider passing Senate Bill 582, which would allow cannabis farmers to sell to consumers across state lines. The current law prohibits such exchanges, but many farmers and extractors see interstate sales as an attractive off-ramp.
The Newsom administration has a long way to go when it comes to taxing cannabis, and some of its initiatives have failed to achieve the results they sought. Earlier this year, the state passed a law to legalize medical marijuana, but its tax structure is more corporate-friendly. But the state hasn’t been aggressive enough in cracking down on the illicit market, and Newsom’s support for stabilizing the market has slowed. The Newsom administration’s vetoed the industry’s top priority last year – citing the need to protect children from marijuana exposure.
The cannabis industry wants broad tax relief for their operations. Farmers, for example, have asked for the suspension of cultivation taxes – a tax that recently increased to $10 per ounce – and for a switch from a flat rate to a percentage price. And social equity license holders have asked the state to remove the 15% excise tax, which would help them gain a foothold in the market. Meanwhile, regulators seem to be prioritizing the existing cannabis market, which is dominated by white-owned businesses. Despite their requests, assistance has been slow to reach the intended beneficiaries.
These two steps are necessary to protect the Oregon marijuana industry and control the tax burden on the industry. Both steps could result in an oligopoly within five to 10 years, with one chain dominating the state’s weed retail industry. Meanwhile, allowing local governments to tax cannabis sales will cut into state coffers. Finally, marijuana consumers are “extremely savvy” and could turn to the illicit market to find cheaper weed.
John Plummer, founder of Bull Run Craft Cannabis, was in prison for eight years for growing marijuana without a license. After serving time for cannabis offenses, he began applying for a license your domain name to grow it indoors. In addition to pursuing his dream, he was buying lumber for a temporary outdoor and indoor operation. This led to two new laws that would allow him to sell the crop.
If the state can pass these laws, more marijuana growers will become legal. But many of them are small operations, and even small farmers need the protection of an indoor-rated fan to grow cannabis. If seeds cannabis the market finally turns around, the homeowner’s calculations might have to be revised. But if the market does improve, he hopes to receive a tax rebate. But even a scaled-back crop feels like a risk.
One solution may be to implement a state-wide marijuana tax. But before a law is passed, a research study must be conducted. The results of this study are expected to be published soon. However, the state is still working on its marijuana laws to avoid a legalization scenario that could cause a large surplus of cannabis. In the meantime, it is important to ensure that Oregon has enough laws for the industry.
Both states plan to use marijuana revenue in different ways. New York will use the marijuana revenue to offset the decline in taxable cigarette consumption. Oregon has also enacted a recreational marijuana law in 2014. In October, retailers are required to charge a 17% retail tax on marijuana products. Oregon spends forty percent of marijuana tax revenue on education. There’s no way to determine the exact tax revenue, but the state has plans to use it for other purposes.
Legalizing marijuana is one way to deal with this oversupply. While many states have legalized marijuana, federal marijuana remains illegal. Its classification is still Schedule One, which means it’s classified as a drug with the same level of potency as heroin and methamphetamine. A new draft bill by three Democratic US Senators, called the Cannabis Administration and Opportunity Act, would make marijuana legal at the federal level and give the FDA the authority to regulate the industry and fund restorative justice programs.
The Senate’s marijuana tax revenue is currently being diverted to other purposes, but that may change. Measure 110 aims to fund drug addiction treatment by making marijuana tax revenue available to more programs. It would also require the Oregon Health Authority to create Addiction Recovery Centers (ARCs), which will be available twenty-four hours a day from October 1, 2021. This funding would allow drug treatment centers to provide much-needed services to the public.