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Published 6:04 am Thursday, October 2, 2014
WARRENTON — After two special sessions, the Warrenton City commissioners decided they would do their best to keep marijuana outside of city limits.
It was suggested at the Commission meeting Sept. 23 for commissioners to consider implementing the ability to tax marijuana or marijuana-infused products before Measure 91 went to voters Nov. 4 in order for any ordinances to be grandfathered in. The text within the ballot measure which has prompted municipalities to enact tax ordinances reads: “No county or city of this state shall impose any fee or tax, including occupation taxes, privilege taxes and inspection fees, in connection with the purchase, sale, production, processing, transportation and delivery of marijuana items.”
Though to some this would seem to render any tax ordinance null and void, many city attorneys, including Warrenton’s Harold Snow, are reading the “shall” in the clause to mean “will after this measure is passed.”
Originally, Warrenton commissioners were eager to tax marijuana and related products at 100 percent for recreational uses. However, there are risks to that move.
“If we chose to make a political statement with a 100 percent tax and were sued, what are the costs associated?” Mayor Mark Kujala asked.
Instead, Snow urged commissioners to seek shelter under Ashland’s tax ordinance which would tax recreational marijuana at 10 percent and require no tax on medical marijuana.
City Manager Kurt Fritsch said this would remove Warrenton as a potential lawsuit target.
“That way we’re not exposing ourselves unnecessarily over a statement,” he said.
No business can apply for a license to sell marijuana until January 2016 in order to give the Oregon Liquor Control Commission enough time to get their ducks in a row.
During that waiting period, the local option for Warrenton could be to adopt a “reasonable time, place and manner regulation” or to file a petition posing the question of banning licensed premises. According to commissioners, this is the “ultimate arrow in our quiver.”
There are pros and cons to the situation though — if Warrenton refuses to allow any dispensaries within city limits, they receive none of the state tax revenues, which are based on the number of marijuana businesses in any one city.
The first reading of the new taxation ordinance was Monday and the second reading and adoption occurred Wednesday.