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Retailers’ Marijuana Taxes in Oregon
Nobody likes taxes, and in Oregon cannabis dispensary sales are subject to retail sales tax of 17% and up. If you have ever been surprised at your tax bill, are behind on your taxes, or need someone to help sift through your data, Taxnexus is here to help.
As with all specialty taxes, taxes on marijuana sales can be difficult to follow. Performing accurate tax calculations at point of sale and on-time filings are keys to compliance. Taxnexus transaction-to-treasury tax compliance service gives Oregon marijuana retailers access to a complete tax database, audit-grade sales ledger analysis, and automated filing services for a low monthly fee.
Currently, cannabis retailers licensed by the Oregon Liquor Control Commission (“OLCC”) must charge a tax of 17% on recreational marijuana they sell to consumers. The 17% retail marijuana tax applies to the retail sales price of marijuana leaves, marijuana flowers, immature marijuana plants, cannabinoid edibles, cannabinoid concentrate, cannabinoid extract, cannabinoid skins products and any other cannabinoid products. (2017 ORS 475B.705 (1)-(2)). This tax must be collected at the point of sale.
After collecting these taxes, marijuana retailers, as the taxpayers, must file payment vouchers every month and remit the appropriate amount owed. In addition, they must file a return with the Department of Revenue (“DOR”) on a quarterly basis — that is, on or before the last day of January, April, July and October of each year for the previous calendar quarter — and remit the taxes owed. Even if no taxes are owed, marijuana retailers are still required to file a return with DOR. (2017 ORS 475.B.710 (1)-(4)).
In addition to the state’s marijuana tax obligations, some municipalities have imposed their own tax of up to 3% on marijuana sales, with which retailers must comply. However, marijuana retailers are left to find out if they have to pay local taxes, and if so, who they have to file with and pay.
Retailers’ Difficulties with Marijuana Tax Compliance
Cannabis entrepreneurs are inundated with regulatory compliance obligations that do not exist in other types of businesses. With more urgent matters taking up their time to keep the business alive and successful, they often put tax compliance on their growing to-do list but many fail to check it off on a monthly and quarterly basis as required. Even those that do their best to be compliant still have difficulties with correctly calculating their taxes.
Most financial professionals, such as CPA’s, do not have the bandwidth, access to an automated software as they do to prepare taxes in other industries, or even the interest to deal with marijuana retail taxes.
Pursuing what makes the most business sense for them, accountancies prefer to stick to income, payroll, and 280E tax preparation. To manually calculate and prepare marijuana transactional returns is not a scalable business for CPA’s. Even if they chose to do it, performing the work based on their hourly rates would cost marijuana businesses so much to make it financially unfeasible. As a result, marijuana retailers have no professionals to turn to for help.
Taxnexus is the only cannabis tax compliance solution in the industry that provides automated transaction-to-treasury tax compliance services to marijuana retailers in Oregon (and other states). All that is required for Taxnexus to accurately calculate and file your marijuana taxes with DOR is your METRC User API Key.
Taxnexus provides its Oregon customers with daily balances on all tax obligations, free monthly payment vouchers, access to the Taxnexus Taxpayer Portal and a tax calendar to ensure timely compliance.
Every quarter, Taxnexus files accurate and timely marijuana tax returns with DOR on behalf of its customers. Using an automated solution, marijuana retailers avoid assessment of past-due taxes and associated late fees, penalties, and interests.
Taxnexus even helps with accurately calculating and filing back taxes so that marijuana retailers can become tax compliant and remain that way!
What’s the Cost?
We know that for any business owner, the bottom line matters. The goal of Taxnexus is to help marijuana businesses become tax compliant so that the industry thrives and we all succeed. We take pride in our low prices so that businesses can afford to be compliant. We gladly offer our services at a fraction of what financial professionals would charge and the hard price of non-compliance.
Limited-Time Offer to Oregon Retailers
If you operate a marijuana dispensary in Oregon, sign up with Taxnexus by June 15, 2019 to take advantage of our limited-time offer to waive your $500 onboarding fee*. Call us today to discuss how we can help you become tax compliant! Phone: 510-679-1900 www.Taxnexus.net
*Terms and conditions apply.