The purpose of this chapter is to impose a tax upon the retail sale of marijuana items by marijuana retailers in the City of Tigard.
(Ord. 16-15 §1)
As used in this chapter, unless the context requires otherwise:
means a person who purchases, acquires, owns, holds or uses marijuana items other than for the purposes of resale.
means the Director of Finance for the City of Tigard or designee.
means the price paid for a marijuana item, excluding tax, to a marijuana retailer by or on behalf of a consumer of the marijuana item.
has the meaning given that term in ORS 475B.015(16).
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 of Oregon and any political subdivision thereof, or the manager, lessee, agent, servant, officer or employee of any of them.
means the exchange, gift or barter of a marijuana item by any person to a consumer.
means any person who is required to be licensed or registered or has been licensed or registered by the State of Oregon to provide marijuana items to consumers for money, credit, property or other consideration.
means either the tax payable by the marijuana retailer or the aggregate amount of taxes due from a marijuana retailer during the period for which the marijuana retailer is required to report collections under this chapter.
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. 16-15 §1)
A tax is hereby levied and shall be paid by every marijuana retailer exercising the taxable privilege of selling marijuana items as defined in this chapter. The director is authorized to exercise all supervisory and administrative powers with regard to the enforcement, collection, and administration of the tax.
(Ord. 16-15 §1)
In addition to any fees or taxes otherwise provided for by law, every marijuana retailer engaged in the sale of marijuana items in the City of Tigard shall pay a tax of three percent of the retail sale price paid to the marijuana retailer of marijuana items, or the maximum allowed by state law, whichever is greater. The tax shall be collected at the point of sale of a marijuana item by a marijuana retailer at the time at which the retail sale occurs and remitted by each marijuana retailer that engages in the retail sale of marijuana items.
(Ord. 16-15 §1)
A.
Every marijuana retailer shall obtain a business license from the City of Tigard pursuant to TMC 5.04. The marijuana retailer will indicate on the business license application whether the marijuana retailer is licensed by or registered with the State of Oregon to provide marijuana items to consumers for money, credit, property or other consideration.
B.
Every marijuana retailer shall, 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 this chapter and the amount of tax collected under this chapter. The marijuana retailer may request, or the city may establish, shorter reporting periods for any marijuana retailer if the marijuana retailer or city deems it necessary in order to ensure collection of the tax and the city may require further information in the return relevant to payment of the tax. A return shall not be considered filed until it is actually received by the director.
C.
At the time the return is filed, the full amount of the tax collected shall be remitted to the city.
D.
Payments shall be applied 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. 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 marijuana retailer 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 shall be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. All taxes collected by marijuana retailers pursuant to this chapter shall be held in trust for the account of the city until payment is made to the city. A separate trust bank account is not required in order to comply with this provision.
E.
Every marijuana retailer must keep and preserve, in an accounting format established by the director, records of all sales made by the marijuana retailer and such other books or accounts as may be required by the director for a period of three years or until all taxes associated with the sales have been paid, whichever is longer. The city shall have the right to inspect all such records at all reasonable times.
(Ord. 16-15 §1)
A.
Any marijuana retailer who fails to remit any portion of any tax imposed by this chapter within the time required shall pay a penalty of 10% of the amount of the tax, in addition to the amount of the tax.
C.
In addition to the penalties imposed, any marijuana retailer who fails to remit any tax imposed by this chapter shall 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.
D.
Penalties imposed, and such interest as accrues for violation of this chapter are separate from, and in addition to, the tax imposed on the sale of marijuana items.
E.
All sums collected pursuant to the penalty provisions in this section shall be distributed to the City of Tigard General Fund to offset the costs of auditing and enforcement of this tax.
(Ord. 16-15 §1)
Any marijuana retailer aggrieved by any decision of the director with respect to the amount of such tax, interest and penalties, if any, may appeal pursuant to the Appeals to Civil Infractions Hearings Officer in Chapter 1.17 of this code, except that the appeal shall be filed within 30 days of the serving or mailing of the determination of tax due. The hearings officer shall hear and consider any records and evidence presented bearing upon the director's determination of amount due, and make findings affirming, reversing or modifying the determination. The findings of the hearings officer shall be final and conclusive, and shall be served upon the appellant in the manner prescribed in Chapter 1.17. Any amount found to be due shall be immediately due and payable upon the service of notice.
(Ord. 16-15 §1)
A.
Whenever the amount of any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously collected or received by the city under this chapter, it may be refunded as provided in subsection B of this section, provided a claim in writing, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the director within one year of the date of payment. The claim shall be on forms furnished by the city.
B.
The director shall have 20 calendar days from the date of receipt of a claim to review the claim and make a determination in writing as to the validity of the claim. The director shall notify the claimant in writing of the director's determination. Such notice shall be mailed to the address provided by claimant on the claim form. In the event a claim is determined by the director to be a valid claim, in a manner prescribed by the director a marijuana retailer may claim a refund, or take as credit against taxes collected and remitted, the amount overpaid, paid more than once or erroneously collected or received. The marijuana retailer shall notify the director of claimant's choice no later than 15 days following the date the director mailed the determination. In the event claimant has not notified the director of claimant's choice within the 15-day period and the marijuana retailer is still in business, a credit will be granted against the tax liability for the next reporting period. If the marijuana retailer is no longer in business, a refund check will be mailed to claimant at the address provided in the claim form.
C.
No refund shall be paid under the provisions of this section unless the claimant established the right by written records showing entitlement to such refund and the director acknowledged the validity of the claim.
(Ord. 16-15 §1)
Any tax required to be paid by any marijuana retailer under the provisions of this chapter shall be deemed a debt owed by the marijuana retailer to the city. Any such tax collected by a marijuana retailer which has not been paid to the city shall be deemed a debt owed by the marijuana retailer to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the City of Tigard for the recovery of such amount. In lieu of filing an action for the recovery, the City of Tigard, when taxes due are more than 30 days delinquent, can submit any outstanding tax to a collection agency. So long as the City of Tigard has complied with the provisions set forth in ORS 697.105, in the event 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. 16-15 §1)
A.
Violation of this chapter shall constitute a Class 1 civil infraction which shall be processed according to the procedures established in Chapter 1.16 of this code, Civil Infractions. It is a violation of this chapter for any marijuana retailer 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 city;
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.
Filing a false or fraudulent return shall be considered a Class B misdemeanor, subject to Section 7.28.020 of this code, Unsworn Falsification. The remedies provided by this section are not exclusive and shall not prevent the city from exercising any other remedy available under the law, nor shall the provisions of this chapter prohibit or restrict the city or other appropriate prosecutor from pursuing criminal charges under state law or city ordinance.
(Ord. 16-15 §1)
Except as otherwise required by law, it shall be 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 this chapter. Nothing in this section shall prohibit:
A.
The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana items are sold or provided; or
B.
The disclosure of general statistics in a form which would not reveal an individual marijuana retailer's financial information; or
C.
The disclosure of information to any state agency related to the licensing or registration of the marijuana retailer or when required to carry out any part of this chapter; or
D.
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 amount due the city under this chapter; or
E.
The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures; or
F.
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 the tax exceeds $5,000.00. The City Council expressly finds and determines that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5).
(Ord. 16-15 §1)
A.
The city, for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due, may examine or may cause to be examined by an agent or representative designated by the city for that purpose, any books, papers, records, or memoranda, including copies of marijuana retailer's state and federal income tax return, bearing upon the matter of the marijuana retailer's tax return. All books, invoices, accounts and other records shall be made available within the city limits and be open at any time during regular business hours for examination by the director or an authorized agent of the director.
B.
If the examinations or investigations disclose that any reports of marijuana retailers filed with the director pursuant to the requirements herein have shown incorrectly the amount of tax accruing, the director may make such changes in subsequent reports and payments, or make such refunds, as may be necessary to correct the errors disclosed by its examinations or investigations.
C.
The marijuana retailer shall reimburse the city for reasonable costs of the examination or investigation if the action disclosed that the marijuana retailer paid 95% or less of the tax owing for the period of the examination or investigation. In the event that such examination or investigation results in an assessment by and an additional payment due to the city, such additional payment shall be subject to interest at the rate of one percent per month, or the portion thereof, from the date the original tax payment was due.
D.
If any taxpayer refuses to voluntarily furnish any of the foregoing information when requested, the city may immediately seek a subpoena from the Tigard Municipal Court to require that the taxpayer or a representative of the taxpayer attend a hearing or produce any such books, accounts and records for examination.
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 years, or until all taxes associated with the sales have been paid, whichever is longer, all records of marijuana items.
(Ord. 16-15 §1)
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.
(Ord. 16-15 §1)
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.
(Ord. 16-15 §1)