Bulletin CE2017-05

Sales to Medical Cardholders

Sales to medical cardholders are not taxed

If you are a licensed retailer selling a marijuana item to an Oregon Medical Marijuana Program (OMMP) cardholder you may not change a tax.   Instead enter the OMMP card number in your Point of Sale system, or the Metrc Cannabis Tracking System, to verify the reason tax was not charged. 

Only retailers that have completed the form “Registration for Sale of Recreational Marijuana for Medical Purposes” are allowed to sale medical grade products.  Medical grade products come from OLCC licensed processors, but contain medical concentration limits; medical grade products can only be sold to OMMP cardholders.  Retailers that are registered for medical sales may also allow an OMMP cardholder, 18 years of age or older, inside their retail establishment. 

Discounting Marijuana Items

OLCC licensed retailers may discount marijuana items. 

Example: a retailer may offer a 20% discount for top shelf product.

The discount rules do not allow a marijuana item to be discounted in correlation with the purchase of another item.  Buy One, Get One Free (BOGO) and customer loyalty cards linked to marijuana products  are NOT allowed. 

Example: A retailer cannot offer buy 2 get 1 for free.

Example: A retailer cannot have a customer loyalty punch card where the customer buys 10 ounces of marijuana and receives the 11th ounce for free.  If a retailer wants to offer a loyalty punch card, it could be,"buy 10 ounces of marijuana and get a t-shirt or hat for free", because the free product is not marijuana. 

For More Information:

Compliance Education Bulletins can be found on the OLCC Recreational Marijuana website.