It’s been a minute since we wrote concerning the new OLCC tax compliance guidelines for retailers. These momentary guidelines require all retailers to certify tax compliance through the Oregon Division of Income (DOR) with a view to renew or switch possession of a marijuana retailer license. OLCC has a reasonably good FAQ sheet here, as a part of its common overview web page on the topic here.
The momentary rule has been in impact for transfers in possession since June 16, 2023. (Transfers in possession are outlined as possession adjustments of 51% or extra.) We’ve handled a couple of tax compliance points in these conditions already, together with individuals scrambling to wash up their dashboards forward of sale. For retail license renewals, the momentary rule has been in impact solely since September 15, 2023. We had one retailer consumer journey on this new requirement already, which is sort of superb for the reason that rule actually took impact on Friday.
From this week’s expertise, I’ve some excellent news to share. OLCC seems keen, as a matter after all, to permit any retailer who has utilized for however not but obtained a certificates of tax compliance (“DOR Certificates”) to proceed to function below momentary authority, a minimum of by the 30-day late renewal window. I’d like to emphasise the “has utilized for” bit in that final sentence. Additionally, it’s price mentioning that retailers (and their applicant homeowners) mustn’t wait till the eleventh hour to submit DOR Certificates functions. We’re studying that the method isn’t at all times fast or simple– significantly if a person or entity is in arrears and angling for a cost plan with DOR.
One other merchandise of be aware is that these conditional letters are robotically generated. They’re despatched inside 24 hours of renewal cost and submission to the e-mail deal with related to a licensee’s account. Because of this, I imagine the conditional letters don’t point out tax compliance or lack thereof, as of this writing. (I haven’t really seen one currently.)
So what ought to last-minute consumers be mindful? Effectively, anybody approaching a license renewal deadline ought to: 1) guarantee all DOR Certificates functions are submitted effectively earlier than the license expiration deadline (together with requisite functions of any “applicant” homeowners); and a pair of) attain out to their OLCC investigator (i) with proof of any and all required DOR submissions, and (ii) to verify every thing that I’m saying is true. I’m not your lawyer. (In all probability. And if I’m, it’s best to nonetheless attain out.)
In order that’s my PSA on a couple of finer factors on this newest program provision. Within the larger image, my colleague Jesse Mondry requested again in Might: “How Many Retailers Will Close Due to Governor Kotek’s New Tax Compliance Missive?” At that time, DOR reported that 9% of licensed cannabis retailers, or round 75 licensees, hadn’t absolutely paid their taxes. I’m guessing these numbers will drop a bit with OLCC now starting to implement this new rule— even with a little bit of wiggle room being afforded to sure licensees.
Lastly, please be aware that this stays a dynamic space. As I recently explained, the tax compliance guidelines are momentary in nature: OLCC will undertake everlasting guidelines this fall. The everlasting guidelines might evolve in any variety of methods, together with by requiring non-retail licensees to point out tax compliance. Watch this area.