The City of Coquille voted to impose a 5% tax on medical marijuana and 10% on recreational marijuana sold within the city limits if and when the State legalizes marijuana dispensaries. Measure 91 legalizes the use and tightly regulated sale of marijuana to adults 21 and over if it passes in November. The city tax is purportedly to cover any costs incurred by the city should such a business locate and require additional policing, etc. Councilor Loren Wiese noted that the local pharmacy has never been burgled and doubts the dispensary would fare any worse but Mayor Matt Rowe and other council members are anticipating an increase in drug related police activity justifying the tax. The tax “will bring in more money for the city” and go direct to the general fund, according to Rowe. Unfortunately, no other local businesses or services are taxed by the city this way it may well be declared discriminatory. If the funds collected are in excess of the costs of allowing this new type of business then the city would be profiting and targeting one industry potentially opening up the city for a legal challenge.
Theoretically, it would seem that keeping the tax low would be to the benefit of the city as people might travel to Coquille to buy a safe, quality product for less than they pay elsewhere. Think how Californians and Washingtonians travel to Oregon to shop in order to avoid sales tax. Conversely, if the tax is set too high, the existing illegal pipelines for cannabis may continue to thrive.
