Chapter 3.40
MARIJUANA TAX
Sections:
3.40.040 Accounting and records.
3.40.050 Penalties and interest.
3.40.055 Deficiencies, fraud, evasion, delay.
3.40.075 Security, collection, business registration revocation, lien.
3.40.080 Apportionment of tax revenue.
3.40.010 Definitions.
The following words and phrases as used in this chapter shall have the following meanings:
(1) “City” means the city of Veneta.
(2) “Tax administrator” means the city administrator of the city of Veneta, the city administrator’s designee, and/or another individual or entity designated by the city to collect the tax on behalf of the city.
(3) “Consumer” means a person who purchases, acquires, owns, holds or uses marijuana items other than for the purpose of resale.
(4) “Marijuana item” means marijuana, cannabinoid products, cannabinoid concentrates and cannabinoid extracts as defined in ORS 475B.015.
(5) “Marijuana retailer” means a person licensed under ORS 475B.110. For purposes of this chapter, “marijuana retailer” includes any individual who is a proprietor of or person responsible for a marijuana retailer in any capacity.
(6) “Person” means individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies.
(7) “Retail sale price” means the total consideration paid to a marijuana retailer for a marijuana item by or on behalf of a consumer, excluding any tax.
(8) “Tax” means either the tax payable by the consumer, or the aggregate amount of taxes due from a marijuana retailer during the period for which the marijuana retailer is required to report the marijuana retailer’s collections. (Ord. 541 § 1, 2017; Ord. 536 § 1, 2016)
3.40.015 Registration.
Every person engaging in business as a marijuana retailer in the city of Veneta shall register with the tax administrator on a form provided by the tax administrator within 15 calendar days after commencing operation as a marijuana retailer. Nonregistration under this section shall not relieve any person from the obligation to pay the tax. The registration shall set forth the name under which the marijuana retailer transacts or intends to transact business, the location of the marijuana retailer’s place or places of business, and such other information that the tax administrator requires to facilitate the collection of the tax. The registration shall be signed by an individual authorized to sign on behalf of the marijuana retailer. The tax administrator shall, within 10 days after the registration, issue without charge a certificate of authority to the registrant to collect the tax from the consumers of the marijuana retailer, together with a duplicate thereof for each additional place of business of the registrant. Such a certificate shall be nonassignable and nontransferable and shall be surrendered immediately to the tax administrator upon the cessation of business at the location named on the certificates or upon sale or transfer of the business. Each such certificate and duplicate thereof shall state the place of business to which it is applicable and shall be prominently displayed so as to come to the notice readily of all consumers and persons entering the marijuana retailer’s place of business. The certificate shall, among other things, state the following:
(1) The name of the marijuana retailer;
(2) The address of the marijuana retailer;
(3) The date when the certificate is issued;
(4) “This Marijuana Retailer Registration Certificate signifies that the person named on the face hereof has fulfilled the requirements of the marijuana tax ordinance of the City of Veneta by registration with the Tax Administrator for the purpose of collecting from consumers the City’s marijuana tax and remitting the tax to the Tax Administrator. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, or to operate as a marijuana retailer without strictly complying with all local applicable laws, including, but not limited to, those requiring a permit from any board, commission, department or office of the City. This certificate does not constitute a permit.” (Ord. 541 § 2, 2017)
3.40.020 Tax imposed.
The city of Veneta hereby imposes a tax on each marijuana item sold to a consumer within the city of Veneta by a marijuana retailer. The Veneta city council shall set the tax rate by resolution; however, the tax rate adopted by the city council shall not exceed three percent of the retail sale price for each marijuana item sold. The tax constitutes a debt owed by the consumer to the city and shall be extinguished only by payment to the marijuana retailer or to the city. (Ord. 536 § 1, 2016)
3.40.030 Collection.
The consumer shall pay the tax to the marijuana retailer at the time of the purchase or sale of the marijuana item. Every marijuana retailer shall collect the tax from the consumer at the time of the sale of a marijuana item. The tax collected by the marijuana retailer shall be held in trust by the marijuana retailer for payment to the city. The amount of the tax shall be separately stated upon the marijuana retailer’s records and on any receipt for the sale of marijuana items rendered by the marijuana retailer to the consumer. No marijuana retailer shall advertise that the tax or any part of the tax will be assumed or absorbed by the marijuana retailer, or that it will not be added to the sale price, or that when added, any part will be refunded. The marijuana retailer shall remit the tax to the tax administrator. If for any reason the tax due is not paid to the marijuana retailer, the tax administrator may require that the tax be paid directly by the marijuana retailer. The tax administrator is authorized to exercise all supervisory and administrative powers with regard to the administration, collection and enforcement of the tax authorized by this chapter. (Ord. 541 § 3, 2017; Ord. 536 § 1, 2016)
3.40.035 Remittance forms.
(1) All taxes collected by any marijuana retailer pursuant to this chapter are due and payable to the tax administrator on the fifteenth day of the month for the preceding month and are delinquent on the last day of the month in which they are due.
(2) On or before the fifteenth day of each month, the marijuana retailer shall file a remittance form for the taxes collected in the previous month with the tax administrator. The remittance shall be filed in such form as the tax administrator prescribes.
(3) A remittance form shall show the amount of tax collected or otherwise due for the period for which the remittance is filed; the total sales upon which the tax is collected or otherwise due; gross sales of the marijuana retailer for the period; the amount of any adjustments; and an explanation of any discrepancies in the amounts included in the remittance.
(4) The person required to file the remittance form shall deliver the remittance form, together with the amount of the tax due, to the tax administrator at the tax administrator’s office; either by personal delivery or by mail. If the remittance is mailed, the postmark shall be considered the date of delivery.
(5) The tax administrator may, for good cause, extend the time for making any remittance or paying any tax for a period not to exceed one month. No further extension may be granted, except by the city administrator. Any marijuana retailer to whom an extension is granted shall pay interest at the rate of one percent per month on the amount of tax due, without proration for a fraction of a month. If a remittance is not filed, and the tax and interest due is not paid by the end of the extension granted, then the interest shall become a part of the tax for computation of penalties prescribed in VMC 3.40.050.
(6) The tax administrator, if he or she deems it necessary in order to insure payment or facilitate collection by the city of the amount of taxes in any individual case, may require remittances and payment of the amount of taxes for other than monthly periods. (Ord. 541 § 4, 2017)
3.40.040 Accounting and records.
(1) Every marijuana retailer must keep and preserve, in a generally accepted accounting format used for reporting revenue and taxes due on business activity, detailed records of all sales made and all taxes collected. Every marijuana retailer must keep and preserve such records for a period of six years. The tax administrator shall have the right to inspect all such records at reasonable times.
(2) For purposes of determining the accuracy of any tax return or for the purpose of an estimate of taxes due, the tax administrator may examine any books, papers, records, or memoranda bearing upon the marijuana retailer’s tax returns, including copies of the marijuana retailer’s state and federal income tax returns and copies of the marijuana retailer’s state marijuana tax returns. All books, invoices and other records shall be made available within the city for examination by the tax administrator during regular business hours. (Ord. 536 § 1, 2016)
3.40.050 Penalties and interest.
(1) Any marijuana retailer who has not been granted an extension of time for remittance of tax due and who fails to remit any tax imposed by this chapter prior to delinquency shall pay a penalty of 10 percent of the amount of the tax due in addition to the amount of the tax.
(2) Any marijuana retailer who has not been granted an extension of time for remittance of tax due, and who fails to pay any delinquent remittance on or before a period of 30 days following the date on which the remittance first becomes delinquent shall pay a second delinquency penalty of 15 percent of the amount of the tax due plus the amount of the tax and the 10 percent penalty first imposed.
(3) If the tax administrator determines that the nonpayment of any remittance due under this chapter is due to fraud or intent to evade the provisions of this chapter, a penalty of 25 percent of the amount of the tax shall be added to the amount of the remittance due, in addition to the penalties stated in subsections (1) and (2) of this section.
(4) In addition to the penalties imposed, any marijuana retailer who fails to remit any tax imposed by this chapter shall pay interest at the rate of one percent per month or fraction thereof, without proration for portions of a month, on the amount of the tax due, exclusive of penalties, from the date on which the remittance first becomes delinquent, until paid in full.
(5) Every penalty imposed and any interest that accrues under the provisions of this chapter shall be merged with, and become a part of, the tax required to be paid. (Ord. 541 § 5, 2017; Ord. 536 § 1, 2016)
3.40.055 Deficiencies, fraud, evasion, delay.
(1) If the tax administrator determines that a tax remittance required by VMC 3.40.035 is incorrect, the tax administrator may compute and determine the amount required to be paid, upon the basis of the facts contained in the remittance or remittances or upon the basis of any information within the tax administrator’s possession. One or more deficiency determinations may be made of the amount due for one or more periods, and the amount so determined shall be due and payable immediately upon service of notice as provided in this chapter and shall be subject to penalties for deficiencies as set forth in VMC 3.40.050.
(a) In making a deficiency determination the tax administrator may offset overpayments, if any, against any underpayment for a subsequent period or periods, or against penalties and interest on the underpayment. The interest on underpayment shall be computed in the manner set forth in VMC 3.40.050.
(b) The tax administrator shall give to the marijuana retailer a written notice of the tax administrator’s determination. The notice may be served personally or by mail. If served by mail, the notice shall be addressed to the marijuana retailer at the marijuana retailer’s address as it appears in the records of the tax administrator and service shall be deemed complete at the time of deposit in the United States Post Office, postage prepaid.
(c) Except in the case of fraud or intent to evade this chapter or any rules or regulations promulgated pursuant to this chapter, every deficiency determination shall be made and notice of the deficiency determination shall be mailed within three years after the last day of the month following the close of the monthly period for which the deficiency is alleged, or within three years after the remittance is filed, whichever period expires later.
(d) Any deficiency shall become due and payable immediately upon service of notice by the tax administrator and a deficiency determination shall become final on the tenth calendar day after the date the tax administrator serves notice of the deficiency determination unless the tax administrator receives a written petition for redetermination before the tax administrator’s determination becomes final.
(2) If any marijuana retailer fails or refuses to collect the tax or to make any report required by this chapter, within the time required by this chapter, or to remit the tax or any portion thereof required to be remitted, or makes a fraudulent remittance or otherwise willfully attempts to evade the provisions of this chapter, the tax administrator shall proceed to obtain facts and information on which to base an estimate of the tax due and shall proceed to determine and assess against the marijuana retailer the tax, interest, and penalties provided for by VMC 3.40.020 and 3.40.050. In the event such a determination is made, the tax administrator shall give a notice, in the manner prescribed by subsection (1)(b) of this section of the amount so assessed. The determination and notice shall be made and mailed within three years after discovery by the tax administrator of any fraud, intent to evade, failure or refusal to collect the tax, or failure to file a required remittance. Any deficiency determination shall become due and payable immediately upon service of the notice and shall become final on the tenth calendar day after the date the tax administrator serves notice of the deficiency determination unless the tax administrator receives a written petition for redetermination before the tax administrator’s determination becomes final.
(3) If the tax administrator believes that the collection of any tax or any amount of tax required to be collected and paid to the city by this chapter or any deficiency determination made under this section is jeopardized by delay, the tax administrator shall make a determination of the tax or amount of tax required to be collected, noting that fact upon the determination. The amount so determined as provided in this section shall be immediately due and payable, and the marijuana retailer shall immediately pay the determined amount to the tax administrator after service of notice thereof. However, the marijuana retailer may petition in writing for redetermination and refund, if the petition is filed within 10 calendar days from the date of service of notice by the tax administrator. (Ord. 541 § 6, 2017)
3.40.060 Appeal.
(1) Any person aggrieved by any decision of the tax administrator may appeal to the city administrator by filing a notice of appeal with the tax administrator within 10 days of the date the notice of the decision is served or mailed. The tax administrator shall fix a time and place for hearing the appeal and shall give the appellant 10 days’ written notice of the time and place of the hearing.
(2) Any person aggrieved by any decision of the city administrator under subsection (1) of this section may appeal to the council by filing a notice of appeal with the tax administrator within 10 days of the date the city administrator’s decision is served or mailed. The tax administrator shall transmit the notice, together with the file of the appealed matter, to the council, who shall fix a time and place for hearing the appeal. The council shall give the appellant not less than 10 days’ written notice of the time and place of hearing the appeal. (Ord. 536 § 1, 2016)
3.40.065 Redeterminations.
(1) Any person against whom a determination is made under VMC 3.40.055 or any person directly interested in the determination may petition for a redetermination, and refund if applicable, within the time required in VMC 3.40.055. If a petition for redetermination is not filed within the time required in VMC 3.40.055, the determination shall become final at the expiration of the allowable time.
(2) If a petition for redetermination is timely filed the tax administrator shall reconsider the determination, and, if requested in the petition, the tax administrator shall grant the petitioner hearing and shall give the petitioner at least 10 days’ notice of the time and place of the hearing. The tax administrator may continue the hearing from time to time as necessary.
(3) Following receipt of the petition, and the hearing if applicable, the tax administrator may decrease or increase the amount of the determination, and if an increase is determined, the increase shall be payable immediately upon service of the tax administrator’s redetermination.
(4) The decision of the tax administrator upon a petition for redetermination shall become final 10 calendar days after service upon the petitioner of notice thereof, unless a written appeal of the tax administrator’s decision is filed with the city administrator pursuant to VMC 3.40.060 prior to the expiration of the 10-day period.
(5) No petition for redetermination or appeal therefrom shall be effective for any purpose unless the marijuana retailer first complies with the payment provisions of this chapter. (Ord. 541 § 7, 2017)
3.40.070 Refund.
Whenever the amount of any tax imposed under this chapter has been paid more than once or has been erroneously or illegally collected or received by the tax administrator, it may be refunded, provided a verified claim in writing therefor, stating the specific reason upon which the claim is founded, is filed with the tax administrator within three years from the date of payment. The claim shall be made on forms provided by the tax administrator. If the tax administrator approves the claim, the excess amount collected or paid may be refunded to, or may be credited on any amounts then due and payable from, the marijuana retailer from whom it was collected or by whom it was paid, and the balance may be refunded to the marijuana retailer or the marijuana retailer’s administrators, executors or assignees. (Ord. 536 § 1, 2016)
3.40.075 Security, collection, business registration revocation, lien.
(1) The tax administrator, whenever he or she deems it necessary to insure compliance with this chapter, may require any marijuana retailer subject to the tax imposed by this chapter to deposit with the tax administrator such security in the form of cash, bond, or other assets as the tax administrator may require. The amount of the security shall be fixed by the tax administrator but shall not be greater than twice the marijuana retailer’s estimated average monthly liability for the period for which the marijuana retailer files returns, or $5,000, whichever amount is the lesser. The amount of the security may be increased or decreased by the tax administrator subject to the limitations of this section.
(2) At any time within three years after any tax or any amount of tax required to be collected becomes due and payable, or at any time within three years after any determination by the tax administrator under this chapter becomes final, the tax administrator may bring an action in the courts of this state, or any other state, or of the United States, in the name of the city, to collect the amount of delinquent tax, together with any penalties and interest.
(3) At any time within three years after any tax or any amount of tax required to be collected becomes due and payable, or at any time within three years after any determination by the tax administrator under this chapter becomes final, the tax administrator may contract with a collections agency to collect the amount of delinquent tax, together with any penalties and interest.
(4) At any time after a determination by the tax administrator under this chapter becomes final, the city administrator may revoke a marijuana retailer’s city of Veneta business registration for nonpayment of delinquent tax. The business registration shall not be reinstated unless and until the city receives payment for the amount of delinquent tax, together with any penalties and interest.
(5) The tax imposed by VMC 3.40.020, together with the interest and penalties provided by VMC 3.40.050 and the filing fees paid to the department of deeds and records of Lane County, Oregon, and advertising costs which may be incurred when the tax becomes delinquent shall be, and until paid shall remain, a lien from the date of its recording with the department of deeds and records of Lane County, Oregon, and superior to all subsequent recorded liens on all tangible personal property used in the retail establishment of marijuana retailer within Veneta and may be foreclosed on and sold as necessary to discharge the lien. Notice of the lien may be issued by the tax administrator whenever the marijuana retailer is in default in the payment of the tax, interest, or penalties, and shall be recorded with the department of deeds and records of Lane County, Oregon, with a copy mailed to the delinquent marijuana retailer at the marijuana retailer’s address as it appears in the records of the tax administrator. The personal property subject to the lien and seized by the tax administrator may be sold by the tax administrator at public auction after 10 days’ notice thereof published in a newspaper in the city.
(6) Any such lien shall, upon the payment in full to the city of the taxes, penalties, and interest for which the lien has been imposed, be released by the tax administrator. The marijuana retailer or person making the payment shall receive a receipt stating that the full amount of the taxes, penalties, and interest has been paid and that the lien is thereby released and the record of lien satisfied. (Ord. 541 § 8, 2017)
3.40.080 Apportionment of tax revenue.
The net proceeds collected from the tax imposed by this chapter shall be allocated in equal shares to the city’s law enforcement fund and the city’s park and recreation fund. For the purpose of this section, net proceeds means the revenue received by the city from the tax and penalties imposed by this chapter, after providing for the cost of administration and any refunds and credits. (Ord. 536 § 1, 2016)
3.40.085 Administrative fee.
A marijuana retailer liable for the collection and remittance of the tax imposed by this chapter may withhold five percent of the net tax due to cover the marijuana retailer’s expenses related to the collection and remittance of the tax. (Ord. 541 § 9, 2017)
3.40.090 Administration.
(1) The city shall keep records related to the payment of the tax confidential to the extent those records are exempt from disclosure by ORS 192.502(18). Nothing in this subsection shall prevent, however:
(a) The disclosure to or the examination of records by another city of Veneta official, employee, or tax-collecting agent for the sole purpose of administering or collecting the tax.
(b) The disclosure, after the filing of a written request to that effect, to the taxpayer or the taxpayer’s receivers, trustees, executors, administrators, assignees, and guarantors, if directly interested, of information as to any such tax paid, any such tax unpaid or the amount of any such tax required to be collected, together with interest and penalties thereon provided the city attorney approves each such disclosure. The tax administrator may refuse to make any such disclosures referred to in this subsection when in the tax administrator’s opinion the public interest would suffer thereby.
(c) The disclosure of the names and addresses of any persons to whom marijuana retailer registration certificates have been issued.
(d) The disclosure of general statistics regarding taxes collected or business done in the city.
(2) Every person engaging in business as a marijuana retailer of a marijuana retailer in the city of Veneta shall comply with the business registration requirements of Chapter 5.05 VMC. (Ord. 541 § 10, 2017)
3.40.095 Violations.
No marijuana retailer or other person subject to the provisions of this chapter shall:
(1) Fail or refuse to register as required by VMC 3.40.015;
(2) Fail or refuse to furnish any remittance form or payment required to be made under this chapter or to furnish a supplemental return or other data required by the tax administrator;
(3) Render a false or fraudulent remittance form under this chapter; or
(4) Render, sign, or verify any false or fraudulent report regarding the city’s marijuana tax. (Ord. 541 § 11, 2017)