Chapter 3.25
RETAIL SALE OF RECREATIONAL MARIJUANA TAX
Sections:
3.25.010 Title.
This chapter shall be known as the Josephine County Retail Sale of Recreational Marijuana Tax Ordinance. [Ord. 2016-005 § 1.]
3.25.020 Purpose and intent.
The purpose of this chapter is to impose a tax on the retail sale of recreational marijuana and marijuana products within the unincorporated areas of Josephine County. [Ord. 2016-005 § 2.]
3.25.030 Definitions.
The following are definitions for the purpose of this chapter and for the purpose of any agreement entered into pursuant hereto and for any actions taken as authorized pursuant to this chapter and otherwise:
“Consideration” means anything of value that is given or received either directly or indirectly, whether through sales, barter, trade, fees, charges, dues, contributions, donations, or reimbursements, whether financial or otherwise.
“Consumer” means a person who purchases, acquires, owns, holds or uses recreational marijuana or marijuana products other than for the purposes of resale to a “business owner.”
“Distribute” means to deliver, convey, transfer, sell, consign or otherwise give to another, recreational marijuana or marijuana products. Outright gifts are excluded from the meaning of “distribute,” “distributed” or “distribution.” Any transfer for financial consideration, however received, is a distribution. “Distribution” also includes, but is not limited to, any transfer that is accompanied by or results in a reciprocal gift, donation, reimbursement, trade, or any other form or transfer for financial consideration.
“Gross Taxable Sales” means the total amount received in money, credits, property or any other consideration from the sale of recreational marijuana or marijuana products.
“Marijuana” has the definition found in ORS 475.005(16). “Marijuana” does not include industrial hemp, as defined in ORS 571.300.
“Marijuana Product” means any and all products of whatever type that contain any element, salt, compound, derivative, mixture, resin, or other preparation of marijuana and that is intended for us or consumption by any means.
“Owner of Business” or “Business Owner” means that person or entity holding the license from the Oregon Liquor Control Commission (OLCC) to sell recreational marijuana or marijuana products.
“Person” includes any natural person, any corporation, professional corporation, nonprofit corporation, cooperative corporation, any profit or nonprofit unincorporated association, business trust, limited liability company, general or limited partnership, joint venture, any legal entity, and any unincorporated group acting in common.
“Retail” and “Retail Sale” includes any distribution of recreational marijuana or marijuana products, and does not include transactions that are authorized under the Oregon Medical Marijuana Program.
“Sale” or “Sell” means the transfer of recreational marijuana or marijuana products from one person to another for consideration. A transfer of recreational marijuana or marijuana products is a “sale” if the person transferring the marijuana received any type of consideration as described herein, whether directly or indirectly, whether at the time of the transfer or at some other time.
“Tax” means the tax imposed by this chapter on the sale or transfer of recreational marijuana or marijuana products. [Ord. 2016-005 § 3.]
3.25.040 Authority.
A. The Board of County Commissioners of Josephine County recognizes, declares and establishes the authority of the Board of Commissioners to tax the sale of recreational marijuana and marijuana products within Josephine County, and to assess, calculate, collect and enforce a tax on all such activities.
B. This chapter does not apply to premises located within the city limits of incorporated cities within Josephine County, nor to activities conducted solely within such city limits. [Ord. 2016-005 § 4.]
3.25.050 Taxation.
A. There is hereby levied and shall be paid by every business owner a tax on the privilege of retail distribution or sales of recreational marijuana and marijuana products to consumers as defined in this chapter.
B. The tax shall be in the amount of three percent of the total amount of the gross taxable sales of recreational marijuana and marijuana products to consumers per calendar quarter. Every business owner shall be responsible for the collection of the tax from the consumer at the time of the sale, and shall be responsible for the payment of the tax to the Josephine County Tax Collector. Any tax owing to Josephine County through the office of its Tax Collector shall be a debt owed to the County by the business owner. The County may undertake any action permitted by law to collect the debt.
C. Every business owner shall be entitled to a deduction against the tax of the amount in the form of refunds actually returned to the purchaser.
D. Every business owner shall file a notice of operation with the Josephine County Tax Collector within 30 days of passage of this chapter, or upon establishment of the business, whichever is sooner.
E. Every business owner shall make a return to the Josephine County Tax Collector on the fifteenth day of January, April, July, and October, reporting the total amount of gross sales for the immediately preceding three-month period. The return on January 15th shall report the gross sales for the preceding months of October, November and December: the return on April 15th shall report the gross sales for the preceding months of January, February and March; the return on July 15th shall report the gross sales for the preceding months of April, May and June; and the return on October 15th shall report the gross sales for the preceding months of July, August, and September.
F. Every return listed in subsection (E) of this section shall be accompanied by payment of the total amount of the tax for that quarter. Payment of the tax is due at the time the return is filed. The return is filed when the Josephine County Tax Collector actually receives it.
G. A business owner aggrieved by any action or decision of the Board of County Commissioners may appeal the decision by filing a writ for judicial review with the Circuit Court of the State of Oregon for Josephine County.
H. Every person engaged in the retail sale of recreational marijuana and marijuana products shall keep accurate records detailing the revenue and expenses incurred. Such records shall specify the time period for which they apply, which shall be not less than one week and not more than one month. Such records shall be kept and maintained upon the premises where the activity is conducted, and such records shall be available for inspection by County authorities during business hours upon 24 hours’ notice. [Ord. 2016-005 § 5.]
3.25.060 Enforcement.
A. Enforcement of the provisions of this chapter is the join responsibility of the Josephine County Sheriff and the Josephine County Tax Collector. Each of those officers is authorized by the adoption of the ordinance codified in this chapter to take any and all actions necessary to enforce the provisions of this chapter, consistent with the provisions of the Constitutions, statutes and rules of the State of Oregon and the United States.
B. Notice of noncompliance with this chapter shall be by written notice, delivered by certified mail to the occupant or person in charge of the premises where the violation occurred, by certified mail to the owner of the business, and by posting of the written notice in a prominent place at or on the front door of the premises.
C. The owner of the business may contest the notice of noncompliance by delivering a written statement to the Board of County Commissioners no more than 21 calendar days after the date of the notice of noncompliance. The Board of County Commissioners shall then schedule a public hearing regarding the violation as soon as practicable, and shall provide the business owner with an opportunity to be heard and to present relevant evidence.
D. After the Tax Collector notifies noncompliant persons pursuant to the process set forth in this chapter, the Board of County Commissioners may impose penalties through a written order consistent with JCC 3.25.070. Such an order may be approved no fewer than 21 calendar days after the Tax Collector provides a notice of noncompliance to all persons that the Tax Collector finds to be in violation, or after a public hearing to contest the notice of noncompliance, whichever is later.
E. An aggrieved business owner may appeal the imposition of any penalty imposed under this chapter by filing a writ for judicial review with the Circuit Court of the State of Oregon for Josephine County. [Ord. 2016-005 § 6.]
3.25.070 Penalties.
A. Failure to pay the tax in the full amount at the time it is due is a violation of the provisions of this chapter. Any business owner who fails to pay the total amount of the tax at the time it is due shall pay a penalty of 10 percent of the unpaid portion of the tax. If the balance due is not paid within 30 days of the due date, the business owner shall pay an additional penalty of 30 percent of the unpaid balance.
B. If a business owner fails to make the return required by JCC 3.25.050 when due, the Josephine County Tax Collector shall estimate the tax due. Within 45 days after the due date of the tax, the Tax Collector shall assess against the business owner the estimated tax and notify the business owner in writing of the assessment pursuant to JCC 3.25.060. The Tax Collector shall also notify in writing the Sheriff, the Board of County Commissioners and the Oregon Liquor Control Commission of the noncompliance. If the business owner fails to file the return and pay either the estimated tax and associated penalties or the actual tax based upon the return and the associated penalties, the Sheriff, the Tax Collector, and the Board of County Commissioners shall take any action permitted by law to collect the tax and to secure the cessation of the business owner’s activities until payment is made.
C. Failure to maintain the records required by this chapter or failure to make such records available for inspection is a violation of this chapter and shall subject the violator to a penalty of $1,000.
D. All fines, penalties and unpaid taxes imposed or assessed under the provisions of this chapter shall become liens against the real and personal property of the owner of the business. Josephine County may use any legal means to facilitate the collection of all such fines and penalties, as well as the taxes imposed by this chapter. [Ord. 2016-005 § 7.]
3.25.080 Effect of adoption.
A. Upon its effective date, this chapter imposes a tax upon the privilege of engaging in the retail sale of recreational marijuana or marijuana products within the unincorporated areas of Josephine County, and imposes restrictions and regulations upon persons engaging in such activities.
B. This chapter is not retroactive. Transactions conducted prior to the effective date of the ordinance codified in this chapter are not affected and are not subject to the tax. All transactions conducted on or after the effective date of the ordinance codified in this chapter are subject to the tax.
C. The revenue from this tax shall be used for public health, education and treatment related to marijuana and marijuana products, and public safety. [Ord. 2016-005 § 8.]