City Marijuana Tax

About

On November 8, 2016, Eugene voters approved Ordinance No. 20566, imposing a three percent tax on the retail sales of recreational marijuana items. Under the Ordinance, marijuana retailers within the City of Eugene are responsible for collecting the tax from consumers at the time of purchase or sale beginning January 1, 2017.

On September 14, 2017, the City Manager issued Administrative Rule 44-17-02 (PDF), which amends Administrative Rule R-3.706-C by changing the City’s penalty and interest structure for the local marijuana tax so that it is different from the Department of Revenue’s penalty and interest schedule. The previously issued Order regarding the City’s marijuana tax is repealed and replaced with this new order. The unchanged portions of the previously issued Order remain in effect.


Tax Payments

The State of Oregon Department of Revenue (DOR) is providing tax collection and other administrative duties for the Eugene Retail Marijuana Tax. All marijuana tax payments owed to the City of Eugene should be sent to the Oregon Department of Revenue using the appropriate forms and payment procedures explained on the DOR website.

Marijuana retailers are required to submit taxes owed to the City of Eugene every month. Retailers can find information on how to make tax payments to the City of Eugene using the tax payment forms provided on the DOR website. 

  • The City of Eugene will not accept Retail Marijuana Tax payments directly. 
  • Marijuana retailers are not required to file tax returns with the City of Eugene directly.
  • All tax payments and quarterly tax returns should be completed through the DOR website.

For additional information on the following, read the Administrative Order 44-16-05, as well as the FAQ found at the bottom of this page:

  • tax payment deadlines
  • record keeping responsibilities
  • penalties and interest for late payment
  • customer receipt requirements  

Oregon Liquor Control Commission

All marijuana retailers selling recreational marijuana in the City of Eugene must have a license issued through the Oregon Liquor Control Commission (OLCC). Nothing in Eugene’s Administrative Rules or City Code affect or remove marijuana retailers of obligations under state laws, regulations, and rules.

  1. Who is responsible for paying Eugene’s local marijuana tax?
  2. Who is responsible for collecting the Eugene Marijuana Tax and remitting tax payments?
  3. Who is responsible for remitting taxes owed to the City of Eugene?
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