Ordinance No. 16-15 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 16-�
AN ORDINANCE ESTABLISHING A TAX ON THE SALE OF MARIJUANA ITEMS BY A
MARIJUANA RETAILER IN THE CITY OF TIGARD
WHEREAS,Section 34a of House Bill 3400 (2015) (codified at ORS 475B.345) provides that a city
council may adopt an ordinance to be referred to the voters that imposes a tax on the sale of marijuana
items by a marijuana retailer in the area subject to the jurisdiction of the city;and
WHEREAS, the Tigard City Council wishes to exercise that power to tax the sale of marijuana items by
a marijuana retailer in the City of Tigard at the maximum rate allowed by law,which is currently three
percent
NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: Tigard Municipal Code is amended by adding a new Chapter 3.80,Marijuana Tax,
to read as attached in Exhibit A.
SECTION 2: Severability. The sections, subsections,paragraphs and clauses of this ordinance
or any intergovernmental agreement with any department or agency of the State
of Oregon are severable.The invalidity of one section, subsection,paragraph,or
clause shall not affect the validity of the remaining sections, subsections,
paragraphs and clauses.
SECTION 3: Savings. Notwithstanding any amendment/repeal,the City ordinances in existence at
the time any criminal or civil enforcement actions were commenced, shall remain
valid and in full force and effect for purposes of all cases filed or commenced
during the times said ordinance(s) or portions thereof were operative. This
section simply clarifies the existing situation that nothing in this Ordinance affects
the validity of prosecutions commenced and continued under the laws in effect at the
time the matters were originally filed.
SECTION 4: Intergovernmental Cooperation. After the effective date of this ordinance,the City
may enter into an agreement whereby the State of Oregon is responsible for the
administration,collection,distribution or enforcement of the tax authorized under
this chapter,either in full or in part,without needing to obtain voter approval.
SECTION 5: Tigard Municipal Code Chapter 3.70 is hereby repealed, as of the effective date of
this ordinance.
SECTION 6: This ordinance shall be referred to the electors of Tigard at the next statewide
general election on Tuesday,November 8,2016.
SECTION 7: This ordinance shall be effective upon certification by the County Elections official
that it has received voter approval at an election conducted on November 8,2016.
Ordinance No. 16- /S
Page 1
PASSED: By I#'/2itn-04S vote of all Council members present after being read by
number and title only this day of , 2016.
�3 B
Carol Krager, City Recorder
APPROVED: Approved by Tigard City Council this ?�day of ,2016.
ohn L. Cook,Mayor
Approved as t— VY
o fo
City Att ey
Page 2 - Ordinance No. 16- 15-
marijuana retailer by or on behalf of a
Chapter 3.80 MARIJUANA TAX consumer of the marijuana item.
Sections: D. "Marijuana item"has the meaning
given that term in ORS 475B.015(16).
3.80.010 Purpose
3.80.015 Definitions E. Person" means natural person,
3.80.020 Tax Imposed joint venture,)oint stock company,
3.80.025 Amount and Payment, partnership, association,club,company,
Deductions corporation,business,trust,organization,or any
3.80.030 Marijuana Retailer group or combination acting as a unit,including
Responsible for Payment the United States of America,the State of
of Tax Oregon and any political subdivision thereof,or
3.80.035 Penalties and Interest the manager,lessee,agent, servant,officer or
3.80.040 Appeal employee of any of them.
3.80.045 Refunds
3.80.050 Actions to Collect F. Retail sale" or"Sale" means the
3.80.055 Violation exchange,gift or barter of a marijuana item by
3.80.060 Confidentiality any person to a consumer.
3.80.065 Audit of Books,Records,
or Persons G. "Marijuana retailer"means any
3.80.070 Forms and Regulations person who is required to be licensed or
3.80.075 Intergovernmental registered or has been licensed or registered
Agreement by the State of Oregon to provide marijuana
items to consumers for money, credit,property
3.80.010 Purpose or other consideration.
The purpose of this chapter is to impose H. "Tax" means either the tax payable
a tax upon the retail sale of marijuana items by the marijuana retailer or the aggregate
by marijuana retailers in the City of Tigard. amount of taxes due from a marijuana retailer
during the period for which the marijuana
3.80.015 Definitions retailer is required to report collections under
this chapter.
As used in this ordinance,unless the
context. I. "Taxpayer"means any person
requires otherwise:
obligated to account to the Director for taxes
A. "Consumer"means a person who collected or to be collected,or from whom a
purchases,acquires,owns,holds or uses tax is due,under the terms of this chapter.
marijuana items other than for the purposes p
3.80.020 Tax Imposed
of resale.
B. "Director"means the Director of A tax is hereby levied and shall be paid by
Finance for the City of Tigard or his or her every marijuana retailer exercising the taxable
designee. privilege of selling marijuana items as defined
in this chapter. The Director is authorized to
C. "Retail sale price"means the price paid exercise all supervisory and administrative
for a marijuana item,excluding tax,to a powers with regard to the enforcement;
collection,and administration of the tax.
Exhibit A—Page 1
3.80.025 Amount and Payment,
Deductions C. At the time the return is filed,the full
amount of the tax collected shall be remitted to
In addition to any fees or taxes otherwise the City.
provided for by law,every marijuana retailer
engaged in the sale of marijuana items in the D. Payments shall be applied in the order of
City of Tigard shall pay a tax of three percent the oldest liability first,with the payment credited
(39/6) of the retail sale price paid to the first toward any accrued penalty,then to
marijuana retailer of marijuana items,or the interest,then to the underlying tax until the
maximum allowed by state law,whichever is payment is exhausted. Crediting of a payment
greater. The tax shall be collected at the point toward a specific reporting period will be first
of sale of a marijuana item by a marijuana applied against any accrued penalty,then to
retailer at the time at which the retail sale interest,then to the underlying tax.If the
occurs and remitted by each marijuana retailer Director,in his or her sole discretion,determines
that engages in the retail sale of marijuana that an alternative order of payment application
items. would be in the best interest of the City in a
particular tax or factual situation, the Director
3.80.030 Marijuana Retailer Responsible may order such a change. The Director may
for Payment of Tax establish shorter reporting periods for any
marijuana retailer if the Director deems it
A. Every marijuana retailer shall obtain a necessary in order to ensure collection of the
business license from the City of Tigard tax.The Director also may require additional
pursuant to TMC 5.04. The marijuana information in the return relevant to payment
retailer will indicate on the business license of the liability. When a shorter return period is
application whether the marijuana retailer is required,penalties and interest shall be
licensed by or registered with the State of computed according to the shorter return
Oregon to provide marijuana items to period. Returns and payments are due
consumers for money, credit,property or immediately upon cessation of business for any
other consideration. reason.All taxes collected by marijuana retailers
pursuant to this chapter shall be held in trust
B. Every marijuana retailer shall,on or for the account of the City until payment is
before the last day of the month following the made to the City.A separate trust bank account
end of each calendar quarter(in the months of is not required in order to comply with this
April,July,October and January)make a return to provision.
the Director,on forms provided by the City,
specifying the total sales subject to this chapter E. Every marijuana retailer must keep and
and the amount of tax collected under this preserve,in an accounting format established by
chapter.The marijuana retailer may request,or the Director,records of all sales made by the
the City may establish, shorter reporting periods marijuana retailer and such other books or
for any marijuana retailer if the marijuana accounts as may be required by the Director for
retailer or City deems it necessary in order to a period of three (3)years or until all taxes
ensure collection of the tax and the City may associated with the sales have been paid,
require further information in the return whichever is longer. The City shall have the
relevant to payment of the tax.A return shall right to inspect all such records at all
not be considered filed until it is actually reasonable times.
received by the Director.
Exhibit A—Page 2
3.80.035 Penalties and Interest modifying the determination. The findings of
the hearings officer shall be final and
A. Any marijuana retailer who fails to conclusive,and shall be served upon the
remit any portion of any tax imposed by this appellant in the manner prescribed in Chapter
chapter within the time required shall pay a 1.17. Any amount found to be due shall be
penalty of ten percent (10%) of the amount immediately due and payable upon the service
of the tax,in addition to the amount of the tax. of notice.
B. If the City determines that the 3.80.045 Refunds
nonpayment of any remittance due under this
chapter is due to fraud,a penalty of twenty-five A. Whenever the amount of any tax,
percent(25%) of the amount of the tax shall be interest or penalty has been overpaid or paid
added thereto in addition to the penalties stated more than once,or has been erroneously
in subparagraphs 1 and 3 of this section. collected or received by the City under this
chapter,it may be refunded as provided in
C. In addition to the penalties imposed,any subparagraph 2 of this section,provided a
marijuana retailer who fails to remit any tax claim in writing, stating under penalty of
imposed by this chapter shall pay interest at the perjury the specific grounds upon which the
rate of one percent (1%)per month or fraction claim is.founded,is filed with the Director
thereof on the amount of the tax,exclusive of within one (1) year of the date of payment.
penalties,from the date on which the remittance The claim shall be on forms furnished by the
first became delinquent until paid. City.
D. Penalties imposed,and such interest as B. The Director shall have twenty(20)
accrues for violation of this chapter are separate calendar days from the date of receipt of a claim
from,and in addition to,the tax imposed on the to review the claim and make a determination
sale of marijuana items. in writing as to the validity of the claim.The
Director shall notify the claimant in writing of
E. All sums collected pursuant to the
penalty provisions in this section shall be the Director's determination. Such notice shall
be mailed to the address provided by claimant
distributed to the City of Tigard General Fund on the claim form. In the event a claim is
to offset the costs of auditing and enforcement determined by the Director to be a valid claim,
of this tax. in a manner prescribed by the Director a
3.80.040 Appeal marijuana retailer may claim a refund, or take
as credit against taxes collected and remitted,
Any marijuana retailer aggrieved by any the amount overpaid,paid more than once or
decision of the Director with respect to the erroneously collected or received. The
amount of such tax,interest and penalties,if marijuana retailer shall notify Director,of
any,may appeal pursuant to the Appeals to claimant's choice no later than fifteen (15)
Civil Infractions Hearings Officer in Chapter days following the date Director mailed the
1.17 of this code, except that the appeal shall determination. In the event claimant has not
be filed within thirty (30) days of the serving or notified the Director of claimant's choice within
mailing of the determination of tax due.The the fifteen (15) day period and the marijuana
hearings officer shall hear and consider any retailer is still in business, a credit will be
records and evidence presented bearing upon granted against the tax liability for the next
the Director's determination of amount due, reporting period. If the marijuana retailer is no
and make findings affirming,reversing or longer in business,a refund check will be mailed
to claimant at the address provided in the claim
Exhibit A—Page 3
form. other person to:
1. Fail or refuse to comply as
required herein;
C. No refund shall be paid under the
provisions of this section unless the 2. Fail or refuse to furnish
claimant established the right by written any return required to be
records showing entitlement to such made;
refund and the Director acknowledged the
3. Fail or refuse to permit
validity of the claim.
inspection of records;
3.80.050 Actions to Collect
4. Fail or refuse to furnish a
Any tax required to be paid by any supplemental return or other
marijuana retailer under the provisions of data required by the City;
this chapter shall be deemed a debt owed by
the marijuana retailer to the City.Any such 5. Render a false or
tax collected by a marijuana retailer which fraudulent return or claim; or
has not been paid to the City shall be 6. Fail, refuse or neglect to
deemed a debt owed by the marijuana remit the tax to the city by the
retailer to the City. Any person owing due date.
money to the City under the provisions of
this chapter shall be liable to an action B. Filing a false or fraudulent
brought in the name of the City of Tigard return shall be considered a Class B
for the recovery of such amount. In lieu of misdemeanor, subject to Chapter
filing an action for the recovery,the City of 7.28.020 of this code, Unsworn
Tigard,when taxes due are more than 30 Falsification. The remedies provided
(thirty) days delinquent,can submit any by this section are not exclusive and
outstanding tax to a collection agency. So shall not prevent the City from
long as the City of Tigard has complied exercising any other remedy available
with the provisions set forth in ORS under the law,nor shall the provisions
697.105,in the event the City turns over a of this ordinance prohibit or restrict
delinquent tax account to a collection the City or other appropriate
agency,it may add to the amount owing an prosecutor from pursuing criminal
amount equal to the collection agency fees, charges under state law or City
not to exceed the greater of fifty dollars ordinance.
($50.00) or fifty percent (50%) of the
outstanding tax,penalties and interest
owing.
3.80.060 Confidentiality
3.80.055 Violation
Except as otherwise required by law,
A. Violation of this chapter shall it shall be unlawful for the City,any
constitute a Class 1 civil infraction which officer,employee or agent to divulge,
shall be processed according to the release or make known in any manner
procedures established in Chapter 1.16 of any financial information submitted or
this code, Civil Infractions. It is a violation disclosed to the City under the terms of
of this chapter for any marijuana retailer or this chapter. Nothing in this section shall
Exhibit A—Page 4
prohibit: that purpose, any books, papers, records;
or memoranda,including copies of
A. The disclosure of the names and marijuana retailer's state and federal income
addresses of any person who is operating a tax return,bearing upon the matter of the
licensed establishment from which marijuana retailer's tax return. All books,
marijuana items are sold or provided;or invoices, accounts and other records shall
be made available within the City limits
B. The disclosure of general statistics in and be open at any time during regular
a form which would not reveal an business hours for examination by the
individual marijuana retailer's financial Director or an authorized agent of the
information; or Director.
C. The disclosure of information to any B. If the examinations or
state agency related to the licensing or investigations disclose that any reports of
registration of the marijuana retailer or when marijuana retailers filed with the Director
required to carry out any part of this chapter. pursuant to the requirements herein have
shown incorrectly the amount of tax
D. Presentation of evidence to the accruing, the Director may make such
court, or other tribunal having jurisdiction changes in subsequent reports and
in the prosecution of any criminal or civil payments, or make such refunds, as may
claim by the City or an appeal from the City be necessary to correct the errors
for amount due the City under this chapter; disclosed by its examinations or
or
investigations.
E.. The disclosure of information when C. The marijuana retailer shall
such disclosure of conditionally exempt reimburse the City for reasonable costs of
information is ordered under public records the examination or investigation if the
law procedures;or action disclosed that the marijuana
F. The disclosure of records related to retailer paid 95 percent or less of the tax
owing for the period of the examination
a business' failure to report and remit the or investigation. In the event that such
tax when the report or tax is in arrears for examination or investigation results in an
over six(6) months or the tax exceeds five assessment by and an additional payment
thousand dollars ($5,000). The City Council due to the City, such additional payment
expressly finds and determines that the shall be subject to interest at the rate of 1
public interest in disclosure of such records percent per month, or the portion
clearly outweighs the interest in thereof, from the date the original tax
confidentiality under ORS 192.501(5). payment was due.
3.80.065 Audit of Books,Records, D. If any taxpayer refuses to
or Persons voluntarily furnish any of the foregoing
A. The City, for the purpose of information when requested,the City may
determining the correctness of any tax immediately seek a subpoena from the
return, or for the purpose of an estimate Tigard Municipal Court to require that the
of taxes due, may examine or may cause taxpayer or a representative of the
to be examined by an agent or taxpayer attend a hearing or produce any
representative designated by the City for such books, accounts and records for
examination.
Exhibit A—Page 5
E Every marijuana retailer shall keep
a record in such form as may be prescribed
by the City of all sales of marijuana items.
The records shall at all times during the
business hours of the day be subject to
inspection by the City or authorized officers
or agents of the Director.
F. Every marijuana retailer shall
maintain and keep, for a period of three (3)
years, or until all taxes associated with the
sales have been paid,whichever is longer,
all records of marijuana items.
3.80.070 Forms and Regulations
The Director 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 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 vendors;
and
B. The records which marijuana retailers
are to keep concerning the tax imposed by
this chapter.
3.80.075 Intergovernmental
Agreement
The City Council may enter into an IGA
with any department or agency of the State
of Oregon whereby the State is responsible
for the administration, collection,
distribution, or enforcement of the tax
authorized under this chapter, either in full
or in part The terms of that agreement shall
apply in lieu of and shall supersede
conflicting provisions of this chapter but
shall not be construed as repealing any
provision of this chapter.
Exhibit A—Page 6