Current through Register Vol. 61, No. 4, April 1, 2022
(a) Except as otherwise specifically defined
in this rule, the definitions in ORS
475B.015 apply to the same terms
as used in this rule.
pre-roll" means a combination of buds and shake/trim in some sort of plain,
non-infused wrapping, and which is designed for smoking.
(c) "Buds" are included within the definition
of "marijuana flowers" in ORS
(d) "Capsule" means a small soluble
container, usually made of gelatin that encloses a dose of a cannabinoid
product, concentrate, or extract intended for human ingestion.
(e) "Combined product" means any product that
combines buds and shake/trim with concentrate and/or extract, or combines
concentrate with extract.
"Infused pre-roll" means usable marijuana combined with one or more other
marijuana items other than plain, non-infused wrapping or filter/tips, and
which is designed for smoking.
"Marijuana retailer" means a marijuana retailer licensed by the Oregon Liquor
Control Commission, or any employee or representative of a marijuana retailer,
who sells marijuana items on or after January 4, 2016.
(h) "Medical marijuana card" means a registry
identification card held by either a patient or a designated primary caregiver,
as described in ORS 475B.415.
(i) "Shake" and "trim" are included within
the definition of "marijuana leaves" in ORS
(j) "Suppository" means a small soluble
container designed to melt at body temperature within a body cavity other than
the mouth, especially the rectum or vagina containing a cannabinoid product,
concentrate, or extract.
"Tincture" means a solution exempt from the Liquor Control Act under ORS
471.035 that combines alcohol
and cannabinoid concentrate or extract. A tincture may or may not include other
ingredients intended for human consumption or ingestion.
(l) "Topical" means a cannabinoid product
intended to be applied to skin or hair.
(m) "Transdermal patch" means an adhesive
substance applied to human skin that contains a cannabinoid product,
concentrate, or extract for absorption into the bloodstream.
The following classifications
apply to sales in tax periods beginning on or after January 1, 2020. A
marijuana retailer must charge tax on products purchased by an individual that
does not present a valid medical marijuana card at the following rates:
(a) Shake/trim, buds, and blended pre-rolls
are taxed at the rate in ORS
(b) Seeds and immature marijuana plants are
taxed at the rate in ORS
(c) Edibles and tinctures are taxed at the
rate in ORS 475B.705(2)(c).
(d) Concentrates are taxed at the rate in ORS
(e) Extracts are taxed at the rate in ORS
(f) Topicals and transdermal patches are
taxed at the rate in ORS
(g) Capsules, suppositories, and combined
products, including infused pre-rolls, are taxed at the rate in ORS
If a marijuana retailer sells a marijuana
item that is not listed in Section 2 of this rule, then the business must make
a determination about which tax category applies to the item. In making the
determination, a marijuana retailer should take into account how items with a
similar method of consumption are taxed, and may request guidance from the
Department of Revenue under those circumstances.
1: John, a marijuana retailer, sells pre-rolls containing
shake/trim wrapped in a plain paper wrapping designed for smoking. These
pre-rolls will be taxed as usable marijuana under ORS
and reported on Schedule 1 by weight of usable marijuana included in the
Example 2: Joil, a
marijuana retailer, sells pre-rolls containing buds wrapped in a paper
wrapping, infused with a marijuana concentrate, and designed for smoking. These
infused pre-rolls will be taxed as a combined marijuana item under ORS
and reported by units sold on Schedule 1.