HomeMy WebLinkAboutOrdinance 6362 01/17/2017 CITY OF SPRINGFIELD, OREGON
ORDINANCE NO. 6162 (GENERAL)
AN ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE SECTIONS
7.1001THROUGH 7.1006 AND 7.1010 THROUGH 7.1014 TO INCORPORATE STATE
MARIJUANA TAX PROVISIONS FOR THE COLLECTION, ENFORCEMENT, ADMINISTRATION
AND DISTRIBUTION OF THE LOCAL MARIJUANA GROSS RECEIPTS TAX, REPEALING
SECTIONS 7.1007-7.1009, AND CONTAINING A SEVERABILITY CLAUSE.
WHEREAS, in 2014, Oregon voters passed Ballot Measure 91, which allowed adults 21 and older to
use, grow, process, and sell limited amounts of marijuana for recreational purposes;
WHEREAS, in 2014, the Council adopted Ordinance No. 6329, imposing a gross receipts tax on the
sale of marijuana in the City of Springfield, the amount of tax to be set by Council Resolution;
WHEREAS, in 2015, the Oregon Legislature passed House Bill 3400, under which the City of
Springfield may impose a tax of up to 3% on the recreational sale of marijuana and marijuana items,
and passed House Bill 2041 imposing a 17% state tax on the recreational sale of marijuana and
marijuana items;
WHEREAS, House Bill 3400 requires a municipal tax on the sale of recreational marijuana to be
adopted by ordinance and referred to the electors of the City at a general election;
WHEREAS, the Council adopted Ordinance No. 6356, imposing a 3% tax on the recreational sale of
marijuana and marijuana items by a marijuana retailer within the City of Springfield;
WHEREAS, the Council adopted Resolution 2016-23, referring the measure of Ordinance No. 6356 to
the electors of the City at the November 8, 2016 general election, and the measure was approved by a
majority of votes cast;
WHEREAS, ORS 305.620 allows any state agency or department to enter into an agreement with a
local government for the collection, enforcement, administration and distribution of local marijuana
taxes;
WHEREAS, the Council has approved an Intergovernmental Agreement between the City and the
Oregon Department of Revenue that enables the Department of Revenue to collect, enforce,
administer, and distribute of Springfield's marijuana taxes under the Department of Revenue
procedures and requirements for state marijuana tax collection, enforcement, administration, and
distribution; and
WHEREAS, amendments to the Springfield Municipal Code are required to align the marijuana gross
receipts tax provisions with the Department of Revenue procedures and requirements for marijuana tax
collection, enforcement, administration, and distribution:
NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS:
Section 1. Chapter 7 BUSINESS of the Springfield Municipal Code, Sections 7.1001 through
7.1006 and 7.1010 through 7.1014 are hereby amended as more particularly described and set forth in
Attachment 1 attached hereto and incorporated herein by reference.
PAGE 1 of 2
Section 2. Chapter 7 BUSINESS of the Springfield Municipal Code, Sections 7.1007 through
7.1009 are hereby repealed.
Section 3. Except as specifically amended herein, Chapter 7 shall continue in full force and
effect.
Section 4. Severability Clause. If any section, subsection, sentence, clause, phrase or
portion of this Ordinance is, for any reason, held invalid or unconstitutional by a court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such
holding shall not affect the validity of the remaining portion hereof.
ADOPTED by the Common Council of the City of Springfield this 117thday of January 2017
by a vote of s for and o against. (1 Absent - Stoehr)
OLOAPPROVED by the Flagon ofrtYel%i n of Springfield this 17th day of January 2017
-M44 Council President
ATTEST:
City Rec der
REVIEWED &APPROVED
AS TO
DATE:
OFFICE OF I T RNEY
PAGE 2 of 2 ORDINANCE NO. 6362
Ordinance Exhibit A
7.1000 Purpose.
For the purposes of this chapter, every person who sells marijuana in the city of
Springfield is exercising a taxable privilege. The purpose of this chapter is to impose a gross
receipts tax upon the retail sale of marijuana.
7.1001 Definitions.
When not clearly otherwise indicated by the context, the following words and phrases as
used in this chapter shall have the following meanings:
Gross Taxable Sales. The total amount received in money, credits, property or other
consideration from sales of marijuana that is subject to the tax imposed by this chapter.
Marijuana. As defined in Section 7.1101 of this code.
Marijuana Items. As defined in Section 7.1101 of this code.
Marijuana Retailer. A person who sells marijuana items to a consumer in this state,
including but not limited to a marijuana licensed by the Oregon Liquor Control Commission who
sells marijuana items on or after January 4, 2016.
Person. Natural person, joint venture, joint stock company, partnership, association,
club, company, corporation, business, trust, organization, or any group or combination acting as
a unit, including the United States of America, the state of Oregon and any political subdivision
thereof, or the manager, lessee, agent, servant, officer or employee of any of them.
Purchase or Sale. The acquisition or furnishing for consideration by any person of
marijuana within the city.
Retail Sale. The transfer of marijuana or marijuana items in exchange for any valuable
consideration to a consumer.
Tax. Either the tax payable by the marijuana retailer or the aggregate amount of taxes
due from a marijuana retailer during the period for which the marijuana retailer is required to
report collections under this chapter.
Tax Collector. The Director of Finance for the City of Springfield or designee, which may
include an official of the Oregon Department of Revenue or Oregon Department of
Administrative Services.
7.1002 Levy of Tax.
(1) A tax is hereby imposed upon the retail sale of marijuana items in Springfield
and shall be paid by every seller exercising the taxable privilege of selling marijuana as defined
in this chapter.
(2) The amount of tax levied for recreational marijuana shall be 3% of the gross
taxable sales of marijuana items by a marijuana retailer.
7.1004 Deductions.
The following deductions shall be allowed against sales received by the marijuana
retailer providing marijuana:
(1) Refunds of sales actually returned to any purchaser;
ORDINANCE NO. 6362
Ordinance Exhibit A
(2) Any adjustments in sales which amount to a refund to a purchaser, providing
such adjustment pertains to the actual sale of marijuana and does not include any adjustments
for other services furnished by a marijuana retailer.
7.1005 Collection and Distribution.
(1) The tax shall be collected at the point of sale of a marijuana item by a
marijuana retailer at the time at which the retail sale occurs and remitted by each marijuana
retailer that engages in the retail sale of marijuana items in accordance with ORS 4756.710.(2)
Taxes, interest and penalties transferred to the City by the Oregon Department of Revenue will
be distributed to the City's general fund.
7.1006 Penalties and Interest.
(1) Interest shall be added to the overall tax amount due at the same rate
established under ORS 305.220 for each month, or fraction of a month, from the time the
return to the Oregon Department of Revenue was originally required to be filed by the
marijuana retailer to the time of payment.
(2) If a marijuana retailer fails to file a return with the Oregon Department of
Revenue or pay the tax as required, a penalty shall be imposed upon the marijuana retailer in
the same manner and amount provided under ORS 314.400.
(3) Every penalty imposed, and any interest that accrues, becomes a part of the
financial obligation required to be paid by the marijuana retailer and remitted to the Oregon
Department of Revenue.
7.1010 Actions to Collect.
If at any time a marijuana retailer fails to remit any amount owed in taxes, interest or penalties,
the Oregon Department of Revenue is authorized to enforce collection on behalf of the City of
the owed amount in accordance with ORS 4756.700 to 4756.755, any agreement between the
Oregon Department of Revenue and the City of Springfield under ORS 305.620 and any
applicable administrative rules adopted by the Oregon Department of Revenue.
7.1011 Violation Infractions.
(1) Violation shall constitute a civil infraction and shall be processed according to
the procedures established in sections 5.600 through 5.626 of this code, Civil Enforcement of
Code Infractions. It is a violation of this chapter for any marijuana retailer to:
(a) Fail or refuse to comply as required herein;
(b) Fail or refuse to furnish any return required to be made;
(c) Fail or refuse to permit inspection of records;
(d) Fail or refuse to furnish a supplemental return or other data required by
the director;
(e) Render a false or fraudulent return or claim; or
(f) Fail, refuse or neglect to remit the to the city by the due date.
ORDINANCE NO. 6362
Ordinance Exhibit A
7.1012 Confidentiality.
(1) Except as otherwise required by law, it shall be unlawful for the city, any
officer, employee or agent to divulge, release or make known in any manner any financial
information submitted or disclosed to the city under the terms of this chapter. Nothing in this
section shall prohibit:
(a) The disclosure of the names and addresses of any person who is operating
a licensed establishment from which marijuana is sold or provided; or
(b) The disclosure of general statistics in a form which would not reveal an
individual seller's financial information; or
(c) Presentation of evidence to the court, or other tribunal having jurisdiction
in the prosecution of any criminal or civil claim or an appeal from the Tax Collector for
amount due the city under this chapter; or
(d) Disclosure of information to and upon request of a local, state or federal
law enforcement official or by order of any state or federal court; or
(e) The disclosure of information when such disclosure of conditionally exempt
information is ordered under public records law procedures.
7.1013 Audit of Books, Records or Persons.
(1) The Tax Collector or other City official, for the purpose of determining the
correctness of any tax return, or for the purpose of an estimate of taxes due, may examine or
may cause to be examined by an agent or representative designated by the city for that
purpose, any books, papers, records, or memoranda, including copies of seller's state and
federal income tax return, bearing upon the matter of the seller's tax return.
(2) All books, invoices, accounts and other records shall be made available within
the city limits and be open at any time during regular business hours for examination by the
director or an authorized agent of the director.
(3) Refusal to voluntarily furnish any of the foregoing information when requested
is deemed a violation of this code per section 7.1011.
7.1014 Forms and Regulations.
(1) The Tax Collector is hereby authorized to prescribe forms and promulgate rules
and regulations to aid in the making of returns, the ascertainment, assessment and collection of
said medical marijuana tax and in particular and without limiting the general language of this
chapter, to provide for:
(a) A form of report on sales and purchases to be supplied to all marijuana
retailers;
(b) The records which marijuana retailers providing marijuana and marijuana
items are to keep concerning the tax imposed by this chapter.
ORDINANCE NO. 6362