Two years ago, the Treasury Department gave banks permission to do business with legal marijuana entities with conditions, including trying to make sure the customers are complying with regulations.
Bryan M. Vance / OPB
Starting in 2017, the Oregon state tax on marijuana is dropping to 17 percent and cities can add their own local taxes of up to 3 percent if voters approve.
The Portland City Council will debate a 3 percent tax on cannabis Wednesday, and Commissioner Amanda Fritz has put together a proposal for spending the tax that could appeal to both law enforcement and marijuana advocates.
She's proposed dedicating those dollars to public safety and drug treatment programs, and for people who were disadvantaged by marijuana prohibition.
"For instance, helping with expunging people's records who were convicted of cannabis-related crimes that wouldn't be a crime now," Fritz said.
Fritz estimates the tax will generate about $3 million per year.
The commissioner said conversations with marijuana industry lobbyists convinced her to advocate for people who'd been disadvantaged by prior drug laws.
The tax would only apply to recreational marijuana. If the City Council approves it, it will go to the November ballot for the voters to decide.
Cities across western Oregon, including Astoria and Cottage Grove, are weighing local cannabis taxes. In eastern Oregon, cities like Pendleton are asking voters whether they want to lift local bans on cannabis.
Here's a full rundown of how Fritz has proposed allocating a Portland marijuana tax: