"We made a mistake", says the tax collectors.
Last week several dispensaries reported that an agent of the Oklahoma Tax Commission entered their local shops and demanded payment of Tobacco Taxes on some Marijuana Medicines; in addition to the Retail State & Local Sales Tax, and the Marijuana Excise Tax.
Noted Cannabis Industry Attorney, Ron Durbin, published the demands to consumers and shops across the state and asked citizens to express their input on the agency-created requirement.
Today Durbin posted the following update to his clients as well as the advocates, patients, and Cannabis business proprietors.
The voters directed that cannabis medicines would be subject to a 7% tax on retail sales. But the OTC perverted the intent by declaring that the text teally meant to call it an excise tax and then the OTC declared that a full state & local sales tax must also be charged. This more than doubled the effective tax rate.
Last Friday I posted about the OTC visiting dispensaries telling them in order to sell pre-rolls, a cigarette tax stamp is required. After contacting the OTC, we received a response today. This is YOUR victory because I know we got a response because you all blew up their phones and email. The community went after them, and that forced them to respond. The OTC ADMITTED THEY MADE A MISTAKE!!! I don’t like the wording of the email, so I’ve asked for further clarification. It’s nice when a government agency can admit they were wrong without it turning into a fight.
Attorney at Law
Durbin Law Firm
Ron Durbin says that Agent Steve Cousparis made the demand to one of his client businessmen. Durbin says that he immediately contacted Cousparis via text and made an open Records Request for the Statutory Orders from the Legislature, directing that Tobacco Taxes be imposed on Cannabis Medicine sales.
The Tobacco tax is over $2 per pack of 20 cigarettes and was created as a way to fund the medicaid expenses for treatment of lung cancer & heart disease caused by tobacco products.
Cannabis has not increased cancer rates in any govt. testing, to date.
Tobacco is not charged any other sales taxes. Cannabis is charged 2 other taxes, and subject to county and city taxes, by state law.