Border Wars: Oregon's Legal Cannabis Program Threatens Washington's

Oregon Washington Border Wars Chalice FarmsChalice Farms built its new marijuana dispensary in the midst of Oregon wine country, largely in anticipation of recreational marijuana sales. Credit Ruth Fremson/The New York Times

Oregon’s recreational marijuana taxes paid by consumers will be among the lowest in the nation. Washington tacks on a 37 percent tax, compared with 17 percent in Oregon and a 3 percent local, optional add-on.

That raises the possibility here in the Northwest, at least, of a border war, if marijuana consumers start crossing into Oregon for lower prices. (They already do for many other purchases, since Oregon has no regular state sales tax, either.) But Oregon officials say their main motive in tax policy is to better compete with the still-illegal unregulated market at home, offering prices closer to what people are used to but with products and producers now inspected and monitored.

Oregon also rejected ideas tried in Washington and Colorado about how to monitor and license new industry participants. Washington, for example, created a set number of licenses and held a lottery to distribute them; Oregon is setting no limits on how many businesses can enter the industry. Likewise, Oregon has no barriers to so-called vertical integration ownership, in which one company can control the product from growth to sale, a practice Washington also restricts.

Read “Oregon’s Legal Sale of Marijuana Comes With Reprieve” by Kirk Johnson:


Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

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