EDITORIAL: Should the Legislature allow cities to raise taxes on marijuana?

Feb. 7—Ontario in Malheur County has a problem with a business boom. Ontario is a stone's throw away from Idaho, where a lot of people live around Boise.

In Oregon, recreational marijuana is legal. In Idaho, recreational marijuana is not.

Malheur County had $104 million in cannabis sales in 2022. That's 10% of the total cannabis sales in Oregon. It's No.1 in sales.

Much of the business is from visitors from Idaho. The local newspaper, The Malheur Enterprise, has had story after story about new dispensaries opening up to satisfy demand.

All that business has meant more traffic in Ontario. It has meant more demands on other infrastructure. It likely contributes to more police cases for Ontario in proportion to its size than other cities in Oregon, state Sen. Lynn Findley, R-Vale, says.

The challenges in Ontario, of course, are not just the booming marijuana business. Ontario has struggles with homelessness, with the changes in the enforcement of drug laws from Ballot Measure 110. Like any town, the government has to find ways to balance the city's needs between many competing priorities. The mayor, councilors and police chief had to work hard to look for money just to hire one additional police officer.

But clearly Ontario is in a unique border position with marijuana sales. The Ontario City Council just reaffirmed earlier this month it wants to try again to get help from the state.

Findley and Rep. Mark Owens, R-Crane, propose to create a new option for Oregon cities with House Bill 2505. If cities decide, they could increase the city tax on marijuana up to 10% from the 3% where it is set now. Some of the tax collected by the city, 20%, would be transferred to the county where the retail establishment is located.

The new tax is not automatic. It would require public hearings. It would require a vote of the city government. It would require a vote of the people in that town.

It wouldn't raise taxes everywhere. It would raise it only in places where cities made that choice and voters approved it.

Marijuana businesses are opposed to the bill. They say it will hurt struggling businesses and make it harder for their customers to afford the product. They say it will lead to more people seeking marijuana on the black market.

The businesses and business groups that testified against the bill in the Legislature last week, though, did not challenge the needs of Ontario or Malheur County.

So if this bill isn't the solution, what is?

Similar legislation has died in the past.