JUSTIFICATION OF TEMPORARY FILING:
(1) The Oregon Liquor and Cannabis Commission is planning to adopt a temporary rule to require applicants for new
and renewal cannabis retail licenses to provide a certificate of tax compliance to the commission pursuant to the May
16th, 2023 Governor’s Directive to OLCC related to the regulation of cannabis retailers and state tax compliance for
new or renewed cannabis retail licenses. Certificates of tax compliance will also be required for changes of ownership
and certain changes in business structures. If the Department of Revenue does not promptly amend the rule to include
the provisions regarding obtaining a certificate of tax compliance, applicants will be seriously prejudiced by having no
guidance on the process or the circumstances under which the department will approve or deny a request for a tax
compliance certificate. There are also other state programs that require a certificate of tax compliance, and the
department needs to provide guidance on the tax certification process and criteria for those programs as well. In
addition, the rule amendment is needed to clarify the process for a taxpayer to provide a self-certification regarding
their tax compliance under the Public Contracting Code and ORS 305.385.
(2) Cannabis retailers, along with other program applicants required to obtain a certificate of tax compliance, will suffer
if they are unable to operate due to their inability to obtain a tax compliance certificate through failure to understand
the process or criteria for obtaining the certificate.
(3) If the department fails to amend the rule, cannabis retailers would be required to seek a certification of tax
compliance, pursuant to OLCC requirements, but would not have a clearly laid out process and guidance on how they
can qualify as being in tax compliance.
(4) The proposed rule amendment will provide clear guidelines to applicants on how and when the department will issue
a tax compliance certificate and when the department will not certify tax compliance.