SALEM, Ore.--As of December 31, 2016, the Department of Revenue has received $60.2 million in marijuana tax payments since the state began taxing recreational marijuana in January 2016. Additional marijuana tax data is available at www.oregon.gov/dor/stats.
For more information about state and local recreational marijuana taxes, visit www.oregon.gov/dor/marijuana or contact the Department of Revenue's Marijuana Tax Program by phone at (503) 947-2597 or email at firstname.lastname@example.org. For questions about licensing for recreational marijuana retailers, visit the Oregon Liquor Control Commission's (OLCC) website at www.oregon.gov/olcc/marijuana.
The year is just starting, but for many who sold recreational marijuana in October, November or December, there are already tax obligations they need to fulfill.
For medical marijuana dispensaries that were selling recreational marijuana products under the temporary early start provisions--which ended December 31--their final returns and tax remittances are due by January 31. For retailers who were licensed by the Oregon Liquor Control Commission (OLCC) during fourth-quarter 2016, their first returns are also due by the end of January. Dispensaries will file their final returns on paper, but retailers are required to file electronically using Revenue Online at www.oregon.gov/dor. Many businesses will be responsible for filing two returns for the fourth quarter: one on paper, and one online.
Businesses making payments in cash should schedule their payment appointments as soon as possible, as there are a limited number of appointments available throughout the month, and those for the end of the month tend to fill up quickly.
Additionally, with the end of early start, the permanent state tax rate of 17 percent is now in effect for all recreational marijuana sales, and those sales can only be made at licensed retail facilities. Consumers in many areas throughout Oregon may see an additional 3-percent local tax added to their recreational marijuana purchases.
The majority of municipalities with this additional local tax are entering into agreements authorizing the Oregon Department of Revenue to collect local marijuana taxes on their behalf. This will determine how businesses file and remit their local taxes. If the Department of Revenue is collecting for the municipality, businesses will file one quarterly return and make one monthly remittance for both state and local taxes. If the municipality is handling their own collections, businesses will have to work with the local government to determine local filing and remittance requirements. They'll still be responsible for filing and remitting state taxes as required by the Department of Revenue.
For more information about state and local recreational marijuana taxes, visit www.oregon.gov/dor/marijuana or contact the Department of Revenue's Marijuana Tax Program by phone at (503) 947-2597 or email at marijuanatax.DOR@oregon.gov. For questions about licensing for recreational marijuana retailers, visit the Oregon Liquor Control Commission's (OLCC) website at www.oregon.gov/olcc/marijuana.
The Oregon Department of Revenue and the IRS will begin processing tax returns when the 2016 tax season opens January 23. Taxpayers can submit their returns earlier, but processing won't start until the tax season officially begins. Once processing begins, returns will be processed in the order received.
As a reminder, the Oregon Department of Revenue won't be issuing personal income tax refunds until after February 15. This refund hold is part of the state's tax fraud prevention activities, and will allow confirmation that the amounts claimed on returns matches what employers report on forms W-2 and 1099. The IRS is also holding federal tax refunds until after February 15, but only for those taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit.
Here are a few things for taxpayers to keep in mind this tax season:
* E-filing is the fastest way to get your tax refund. On average, taxpayers who e-file their returns and request their refund via direct deposit receive their refund sooner than those who file paper returns and request paper refund checks.
* There are many free or low-cost preparation options available for both federal and Oregon tax returns.
o Some software companies offer free software use and e-filing for eligible taxpayers.
o AARP and CASH Oregon provide free and low-cost tax preparation services throughout local communities.
o All Oregon taxpayers preparing their own return can file electronically at no cost using Oregon's free fillable forms.
For more information visit www.oregon.gov/dor and search for "free tax preparation services."
* Anyone who needs a personal income tax return booklet can order it through the Department of Revenue. The booklet is available online at www.oregon.gov/dor/forms , or taxpayers can order a copy by calling (503) 378-4988 or (800) 356-4222, or by mailing their request--along with their name, phone number, and mailing address--to:
Oregon Department of Revenue
PO Box 14999
Salem, OR 97309-0990
* According to a report from the Oregon Center for Public Policy, one in five taxpayers who were eligible for the federal Earned Income Tax Credit didn't claim it in past tax years. For more information about the credit and eligibility, visit the IRS website at www.eitc.irs.gov.
* On the subject of tax credits: Oregon is offering a new refundable credit to low- and moderate-income families: the Working Family Household and Dependent Care (WFHDC) Credit. The new credit brings together benefits previously offered under Oregon's Working Family Child Care and Child and Dependent Care credits, and replaces both credits starting in tax year 2016. For more information on the WFHDC credit, including additional details on eligibility and supporting documentation requirements, visit www.oregon.gov/dor and look under "Popular Topics."
Visit www.oregon.gov/dor to get tax forms, check the status of your refund, or make tax payments; or call 1 (800) 356-4222 toll-free from an Oregon prefix (English or Spanish); (503) 378-4988 in Salem and outside Oregon; or email, email@example.com. For TTY (hearing or speech impaired), call 1 (800) 886-7204.