On January 4, 2016, the Oregon Liquor Control Commission (OLCC) opened the online application system for recreational marijuana licenses. The OLCC is now offering a series of workshops to help recreational marijuana businesses operate correctly and effectively.
On March 3, Governor Brown signed House Bill 4014, lifting the two-year residency requirement for marijuana business license applicants.
Green Rush Consulting anticipates dispensaries will need a minimum of $250,000 in build-out costs, and recommends capitalization beginning at $500,000. Call us to discuss estimates that fit your specific business plans and other license types
• Producer: grows marijuana
• Processor: transforms raw marijuana into another product or extract, and/or is responsible for packaging and labeling recreational marijuana
• Wholesaler: buys in bulk and sells to resellers rather than to consumers
• Retail: sells directly to consumers
• Laboratory: tests marijuana for pesticides, cannabinoid content
• Research Certificate: performs research according to a specific proposal
Applications are compliance-based, not merit-based. However, even applications that meet all state and local requirements, including premises inspection and payment of fees, may be refused if the OLCC has reasonable grounds to believe there are sufficient licenses in an area.
Premises required for application
Applicants must have evidence of control of their proposed facilities, which must be at least 1,000 feet away from schools and abide by local restrictions and ordinances.
Before the OLCC will issue a license, applicants must obtain a Land Use Compatibility Statement (LUCS) from the local governing body. The local governing body will set fees for the LUCS.
Local compliance is a prerequisite for license approval, and some cities and counties have banned recreational facilities. Review the OLCC ban list before selecting premises, and actively engage your community to dissuade potential future bans during general elections.
Recreational marijuana taxation
• 25%: taxed on recreational sales at medical marijuana dispensaries under the temporary rules
• 17%: state taxes on recreational marijuana sales at OLCC-licensed recreational facilities
• 3%: maximum local taxes on recreational marijuana sales at OLCC-licensed recreational facilities
Where does the money go?
According to Measure 91, revenue after costs will be distributed to the following:
• 40%: Common School Fund
• 20%: Mental Health Alcoholism and Drug Services
• 15%: State Police
• 10%: Cities for enforcement of the measure
• 10%: Counties for enforcement of the measure
• 5%: Oregon Health Authority for alcohol and drug abuse prevention