For the purposes of this chapter, any seller of marijuana, medical marijuana, or marijuana-infused products in the City is exercising a taxable privilege. The purpose of this chapter is to impose a tax upon the retail sale of marijuana, medical marijuana, and marijuana-infused products and not on the business of producing marijuana.
(Ord. 505 §1, 2014)
When not clearly otherwise indicated by the context, the following words and phrases, as used in this chapter, have the following meanings:
"Director"
means the City's Recorder or designee.
"Gross taxable sales"
means the total amount received in money, credits, property, or other consideration from sales of marijuana, medical marijuana, and marijuana-infused products that are subject to the tax imposed by Section 8.05.030.
"Marijuana"
means all parts of the plant of the Cannabis family Moraceae, whether growing or not; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant or its resin, as may be defined by Oregon Revised Statutes as they currently exist or may from time to time be amended. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
"Oregon Medical Marijuana Program"
means the office within the Oregon Health Authority that administers the provisions of ORS 475.300 through 475.346, the Oregon Medical Marijuana Act, and all policies and procedures pertaining thereto.
"Person"
means natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or any group or combination acting as a unit, including the United States of America, the State, and any political subdivision thereof, or the manager, lessee, agent, servant, officer, or employee of any of them.
"Purchase or sale"
means the retail acquisition or furnishing for consideration by any person of marijuana within the City and does not include the acquisition or furnishing of marijuana by a grower or processor to a seller.
"Registry identification cardholder"
means a person who has been diagnosed by an attending physician with a debilitating medical condition and for whom the use of medical marijuana may mitigate the symptoms or effects of the person's debilitating medical condition, and who has been issued a registry identification card by the Oregon Health Authority.
"Retail sale"
means the transfer of goods or services in exchange for any valuable consideration and does not include the transfer or exchange of goods or services between a grower or processor and a seller.
"Seller"
means any person who sells marijuana or marijuana-infused products to purchasers for money, credit, property, or other consideration within the City.
"Tax"
means either the tax payable by the seller or the aggregate amount of taxes due from a seller during the period for which the seller is required to report collections under Section 8.05.050.
"Taxpayer"
means any person obligated to account to the Director for taxes collected or to be collected, or from whom a tax is due, under the terms of this chapter.
(Ord. 505 §1, 2014)
(A) 
Every seller exercising the taxable privilege of selling marijuana and marijuana-infused products, as defined in Section 8.05.020, is subject to and must pay a tax for exercising that privilege.
(B) 
The amount of tax levied is as follows:
(1) 
Five percent of the gross taxable sale amount paid to the seller of marijuana and marijuana-infused products by a person who is a registry identification cardholder.
(2) 
10% of the gross taxable sale amount paid to the seller of marijuana and marijuana-infused products by persons who are purchasing marijuana and marijuana-infused products but are not doing so under the provisions of the Oregon Medical Marijuana Program.
(Ord. 505 §1, 2014)
The following deductions are allowed against sales received by the seller providing marijuana:
(A) 
Documented refunds of sales actually returned to any purchaser.
(B) 
Documented adjustments in sales that amount to a refund to a purchaser, providing such adjustment pertains to the actual sale of marijuana or marijuana-infused products and does not include any adjustments for other services furnished by a seller.
(Ord. 505 §1, 2014)
(A) 
Every seller must, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October, and January), make a return to the Director, on forms provided by the City, specifying the total sales subject to Section 8.05.030 and the amount of tax collected under Section 8.05.030. The seller may request, or the Director may establish, shorter reporting periods for any seller if the seller or Director deems it necessary in order to ensure collection of the tax. The Director may require further information in the return relevant to payment of the tax. A return is not considered filed until it is actually received by the Director.
(B) 
At the time the return is filed, the seller must remit to the City the full amount of the tax collected. Payments received by the City for application against existing liabilities will be credited toward the period designated by the taxpayer under conditions that are not prejudicial to the interest of the City. A condition considered prejudicial is the imminent expiration of the statute of limitations for a period or periods.
(C) 
The City will apply non-designated payments in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax, until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax.
(D) 
If the Director, in his or her sole discretion, determines that an alternative order of payment application would be in the best interest of the City in a particular tax or factual situation, the Director may order such a change. The Director may establish shorter reporting periods for any seller if the Director deems it necessary in order to ensure collection of the tax. The Director also may require additional information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest will be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. Sellers must hold in trust all taxes collected pursuant to Section 8.05.030 for the City's account until the seller makes payment to the City. A separate trust bank account is not required in order to comply with this provision.
(E) 
Every seller required to remit the tax imposed by Section 8.05.030 is entitled to retain five percent of all taxes collected and due to the City to defray the costs of bookkeeping and remittance.
(F) 
Every seller must keep and preserve, in an accounting format established by the Director, records of all sales made by the seller and such other books or accounts as the Director may require. Every seller must keep and preserve for a period of three years all such books, accounts, and other records. The Director has the right to inspect all such records at all reasonable times.
(Ord. 505 §1, 2014)
(A) 
Any seller who fails to remit any portion of any tax imposed by Section 8.05.030 within the time required must pay a penalty of 10% of the amount of the tax, in addition to the amount of the tax.
(B) 
If any seller fails to remit any delinquent remittance on or before a period of 60 days following the date on which the remittance first became delinquent, the seller must pay a second delinquency penalty of 10% of the amount of the tax, in addition to the amount of the tax and the penalty first imposed.
(C) 
If the Director determines that the nonpayment of any remittance due under Section 8.05.030 is due to fraud, a penalty of 25% of the amount of the tax will be added thereto, in addition to the penalties stated in subsections A and B.
(D) 
In addition to the penalties imposed, any seller who fails to remit any tax imposed by Section 8.05.030 must pay interest at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
(E) 
Every penalty imposed, and any interest that accrues under the provisions of subsection D, becomes a part of the tax required to be paid.
(F) 
All sums collected pursuant to the penalty provisions in subsections A through C will be distributed to the City's general fund.
(G) 
Penalties for certain late tax payments may be waived or reduced pursuant to policies and processes adopted by the Director. However, the Director is not required to create a penalty waiver or reduction policy. If the Director does not create a policy for waivers or reductions, no waivers or reductions are allowed.
(Ord. 505 §1, 2014)
(A) 
If any seller fails to make any report of the tax required by Section 8.05.030 within the time provided in Section 8.05.050, the Director will proceed to obtain facts and information on which to base the estimate of tax due. As soon as the Director procures such facts and information upon which to base the assessment of any tax imposed by Section 8.05.030 and payable by any seller, the Director will determine and assess against such seller the tax, interest, and penalties provided for by Section 8.05.060.
(B) 
If the Director makes a determination as outlined in subsection A, the Director must give notice to the seller of the amount assessed. The notice must be personally served on the seller or deposited in the United States mail, postage prepaid, addressed to the seller at the last known place of address.
(C) 
The seller may appeal the determination as provided in Section 8.05.080. If no appeal is timely filed, the Director's determination is final and the amount assessed is immediately due and payable.
(Ord. 505 §1, 2014)
(A) 
Any seller aggrieved by any decision of the Director with respect to the amount of tax owed, along with interest and penalties, if any, may appeal the decision to the City Council.
(B) 
The seller must file the appeal within 30 days of the City's serving or mailing of the determination of tax due. The seller must file using forms provided by the City.
(C) 
Upon receipt of the appeal form, the City Council will schedule a hearing to occur within 20 business days. The City Council will give the seller notice of the time and date for the hearing no less than seven days before the hearing date. At the hearing, the City Council will hear and consider any records and evidence presented bearing upon the Director's determination of amounts due and make findings affirming, reversing, or modifying the determination. The Director and the appellant may both provide written and oral testimony during the hearing. The findings of the City Council are final and conclusive. The City will serve the findings upon the appellant in the manner prescribed above for service of notice of hearing. Any amount found to be due is immediately due and payable upon the service of notice.
(Ord. 505 §1, 2014)
(A) 
The City may refund to the seller any tax, interest, or penalty amount under any of the following circumstances:
(1) 
The seller has overpaid the correct amount of tax, interest, or penalty;
(2) 
The seller has paid more than once for the correct amount owed; or
(3) 
The City has erroneously collected or received any tax, interest, or penalties.
(B) 
The City may not issue a refund under subsection A unless the seller provides to the Director a written claim under penalty of perjury stating the specific grounds upon which the claim is founded and on forms furnished by the City. The seller must file the claim within one year from the date of the alleged incorrect payment to be eligible for a refund.
(C) 
The Director has 20 calendar days from the date of the claim's receipt to review the claim and make a written determination as to its validity. After making the determination, the Director will notify the claimant in writing of the determination by mailing notice to the claimant at the address provided on the claim form.
(D) 
If the Director determines the claim is valid, the claimant may either claim a refund or take as a credit against taxes collected and remitted the amount that was overpaid, paid more than once, or erroneously received or collected by the City. The claimant must notify the Director of the claimant's choice no later than 15 days following the date the Director mailed the determination, and the claimant must do so in a manner prescribed by the Director.
(E) 
If the claimant does not notify the Director of the claimant's choice within the 15-day period and the claimant is still in business, the City will grant a credit against the tax liability for the next reporting period. If the claimant is no longer in business, the City will mail a refund check to claimant at the address provided in the claim form.
(F) 
The City will not pay a refund unless the claimant establishes by written records the right to a refund and the Director acknowledges the claim's validity.
(Ord. 505 §1, 2014)
Any tax required to be paid by any seller under the provisions of Section 8.05.030 is a debt owed by the seller to the City. Any tax collected by a seller that has not been paid to the City is a debt owed by the seller to the City. Any person owing money to the City under the provisions of Section 8.05.030 is liable to an action brought in the name of the City of Yamhill for the recovery of the amount owing. In lieu of filing an action for recovery, the City, when taxes due are more than 30 days delinquent, may submit any outstanding tax due to a collection agency. So long as the City has complied with the provisions set forth in ORS 697.105, if the City turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees, not to exceed the greater of $50.00 or 50% of the outstanding tax, penalties, and interest owing.
(Ord. 505 §1, 2014)
(A) 
All violations of Sections 8.05.030 and 8.05.050 are punishable as set forth in City Code Chapter 1.36. It is a violation of Sections 8.05.030 and 8.05.050 for any seller or other person to:
(1) 
Fail or refuse to comply as required herein;
(2) 
Fail or refuse to furnish any return required to be made;
(3) 
Fail or refuse to permit inspection of records;
(4) 
Fail or refuse to furnish a supplemental return or other data required by the Director;
(5) 
Render a false or fraudulent return or claim; or
(6) 
Fail, refuse, or neglect to remit the tax to the City by the due date.
(B) 
The remedies provided by Sections 8.05.060, 8.05.100, and subsection A of this section are not exclusive and do not prevent the City from exercising any other remedy available under the law.
(C) 
The remedies provided by this section do not prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under State law or City ordinance.
(Ord. 505 §1, 2014)
Except as otherwise required by law, it is unlawful for the City, any officer, employee, or agent to divulge, release, or make known in any manner any financial information submitted or disclosed to the City under the terms of Section 8.05.050. Nothing in this section prohibits any of the following:
(A) 
The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana is sold or provided;
(B) 
The disclosure of general statistics in a form which would not reveal an individual seller's financial information;
(C) 
Presentation of evidence to the court, or other tribunal having jurisdiction, in the prosecution of any criminal or civil claim by the City or an appeal from the City for amounts due the City under Section 8.05.030;
(D) 
The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or
(E) 
The disclosure of records related to a business' failure to report and remit the tax when the report or tax is in arrears for over six months or when the tax exceeds $5,000.00. The City Council expressly finds that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5).
(Ord. 505 §1, 2014)