State tax revenue for Oregon’s recreational marijuana sales have hit $60.2 million for 2016.
According to the state Department of Revenue, Cannabis sellers collected a 25 percent sales tax for much of last year.
To make this tax revenue, total retail sales of marijuana-laced products and pot in 2016 would have had to equal about $241 million.
According to senior economist for the Oregon Legislative Revenue Office, Mazen Malik, the cannabis tax revenues are better than what he expected. Earlier, Malik had predicted that the cannabis sales for last year would produce $44 million.
He feels that higher prices for cannabis edibles and extracts played a huge role in the higher than projected tax revenues. For instance, before Oregon’s legalization of recreational pot, products such as marijuana brownies didn’t have a market.
He said that, “Usually, people would not buy them from cornerside dealers.”
During the last three months of 2016, some marijuana sellers collected less than the 25 percent sales tax and this is probably why pot sales were higher than the estimated $241 million.
A requirement of 25 percent tax on recreational pot is needed by the Oregon Health Authority.
On Jan. 1, the cities of Springfield and Eugene approved local recreational pot sales taxes after voter approval in November.
Lane County requires a 3 percent sales tax for recreational pot retailers in unincorporated areas. Six cities in the county have local taxes, they include: Westfir, Dunes City, Veneta, Florence, Cottage Grove and Oakridge.
