Bulletin file photoConflicts between medical marijuana growing sites and neighbors have been over odors and where greenhouses are located. Some neighbors are just opposed to the practice altogether.

La Pine and Redmond this week joined several other Oregon cities by considering a tax on marijuana in anticipation of voters passing Measure 91 in November and moratoriums on medical dispensaries being lifted in May.

Both cities will prepare ordinances that would tax recreational and medical marijuana. The city councils will decide on the taxes at upcoming meetings later this month.

The La Pine City Council agreed Wednesday to draft an ordinance that would tax the gross sales of recreational marijuana at 12 percent and medical marijuana at 5 percent.

“There’s no real downside, in a sense,” said interim City Manager Rick Allen.

He added that the issue will likely be back in the future if legalization in Oregon doesn’t pass this time. “Recreational marijuana and legalization of marijuana would appear to be moving forward across the country.”

The city councilors agreed that the issue was something the city had to move forward on and be prepared for regardless of whether they think legalization is a good idea for the state.

The local tax on marijuana can be amended in the future, but has to be on the books before Measure 91 would take effect if it passes in November. The ballot measure does not allow for local governments to put an additional tax on marijuana within their jurisdictions. But many municipalities believe their tax can be “grandfathered” in if an ordinance is pre-emptively passed.

Councilor Stu Martinez said he looked at it like other business wanting to operate within the city and paying for a business license.

“If they want to do business inside the city, then I think they need to pay for it,” he said.

Allen reminded councilors that a tax on the substance shouldn’t be considered as a deterrent to keep marijuana from being sold in La Pine.

“That’s not what you’re doing with the tax,” he said. “You have to be careful if you start doing that.”

Allen acknowledged that the City Council might perceive a tax as sending a mixed message to residents, since a moratorium was passed on medical dispensaries. The councilors will consider the proposed ordinance at their next meeting on Oct. 22.

In Redmond, a Tuesday night workshop ended with a consensus among the City Council to prepare an ordinance taxing marijuana sales. The council meets Oct. 14 and authorized city staff to draft an ordinance that would collect 15 percent from recreational marijuana sales and 5 percent from medical marijuana, should either be allowed inside city limits.

Redmond adopted a one-year moratorium on marijuana dispensaries earlier this year. The decision to authorize a pre-emptive tax on marijuana — or the amount — was not unanimous and required extensive discussion.

“I don’t want it in our cities at all,” said Councilor Jay Patrick. “If someone wants it that bad, they can drive to Bend. I’m OK losing their business.”

City Attorney Steve Bryant told the City Council if Measure 91 passes, he thinks it may phase out medical marijuana dispensaries because it may be simpler for users to buy it from whatever nearby retail outlet exists.

Councilors discussed the potential of city costs such as administration and public safety that may increase with dispensaries or stores and agreed some kind of tax to mitigate that was important.

Councilors Ed Onimus and Joe Centanni strongly disagreed on the parity of rates, with Centanni initially advocating for an identical tax rate for recreational and medical marijuana, saying “it’s not medicine, it’s medical marijuana.”

Onimus replied, “Tell that to the cancer patient who’s suffering.”

Eventually, the majority of councilors agreed to consider a lower rate for medical marijuana. City Manager Keith Witcosky reminded the City Council that the subject will be an ongoing one for both cities and the state.

“I don’t know if local legislation will stand, but we have to be very active and engaged,” he said. “If the measure passes, I expect that the next legislative session will be the most interesting one Oregon has ever had.”

— Reporter: 541-617-7820, tshorack@bendbulletin.com

— Reporter: 541-548-2186, lpugmire@wescompapers.com