Taxes are a problem regardless of the industry, putting pressure on retailers and consumers alike. The cannabis industry is no exception, constantly facing changes in regulations and increases in taxes. State and local governments aren’t limited to using only one type of cannabis tax and will stack sales tax on top of that. This is a tactic to discourage the use of cannabis. These taxes can be based on the price, weight, or potency of the product, depending on the government responsible.
A percentage-of-price tax is the most commonly used, where a percentage of the retail price, typically higher than the standard sales tax, is paid by the consumer, and then the retailer returns this amount to the government. Weight-based taxes are most commonly based on the ounce and calculated by the processor before being distributed, then built into the purchase price. And a potency-based tax, the least common, uses the amount of THC found in the cannabis product to determine the cost. These taxes are used to fund various programs, including public schools, healthcare, and infrastructure, depending on the local and state governments. More and more states are starting to allocate this money towards cannabis-related programs, including Oregon.
The revenue from cannabis taxes in Oregon is put towards substance abuse prevention, including mental health support and grants for local organizations to implement them, grants to support small cannabis businesses starting, support for the Oregon Medical Marijuana Program, research to further develop the hemp industry, and research on how cannabis affects mental and physical health.
The higher prices caused by the taxes impact small businesses, making it more difficult to open a new store and compete with larger chains. At the same time, the strict rules and regulations imposed are confusing and difficult to navigate. All of this ultimately raises the price for the consumer, driving them towards the illegal cannabis market. The biggest concern about this is the danger of unregulated cannabis, which has the potential to be laced with drugs, chemicals, or other dangerous substances. Local dispensary, Cannabis On Time, has found one way to fight back against rising prices. The owners choose to take on the cost of the taxes so they can offer medical prices to all of their customers, promoting wider access to the mental and physical benefits of cannabis.
Cannabis On Time, right off the intersection of 7th and Garfield, has been offering organic flower from their own farms since 2023, with plans to expand to a second location in Salem. The knowledgeable budtenders are just one aspect of the friendly atmosphere, which features music, seasonal decorations, a large and inviting space, and fun product displays. They even host events partnering with other local dispensaries and businesses to offer raffles with big prizes and huge sales for holidays like 4/20 or Black Friday.
They boast the best prices in town, not just by paying taxes on behalf of customers, but also by offering in-house options among their wide selection of products. Their in-house 100mg edibles come in six flavors and two different types: Slam Dunk, a generic blend of strains, and Stoner’s Choice, which has an indica, sativa, and hybrid option. They also have a large selection of pipes and bongs with some silicone options, but mostly glass, ranging from small bongs and rigs around six inches to massive pieces, and for pipes, they have smaller pocket pipes and larger ones around six inches. There are simple, clear glass bongs and rigs, fun colors or patterns (glow-in-the-dark cannabis leaves), pipes with swirling colors, multicolor abstract pipes, and bongs with strange shapes, bongs that look like fish, bongs shaped like cats, or really tall bongs with multiple chambers; lots to choose from alongside fun accessories like a skateboard-shaped battery with working wheels. Of course, they have more standard batteries, different kinds of rolling papers, grinders, lighters, dab tools, screens, and more. Next time you need to stock up on supplies, swing by Cannabis On Time to support a local dispensary that goes the extra mile to offer lower costs at their own expense. In the meantime, check out their website or socials.
