Council passes provisional tax on marijuana

On a 4-0 vote Thursday the Sisters City Council passed a preemptive 15-percent tax on the sale of legal recreational marijuana in the city - even though the sale of recreational marijuana in the city, state, and the nation is currently illegal.

This unusual tactic was adopted ahead of the November 4 election in case Measure 91 passes. Measure 91 would legalize the sale of recreational marijuana in the state. Sale and possession would remain a federal crime.

The council - absent McKibben Womack - was acting on advice from City Attorney Steve Bryant. Bryant was in turn acting on input from the League of Oregon Cities and other discussions he has had with contacts within the state legislature and with other Oregon city attorneys.

It is Bryant's belief that if Measure 91 passes, local municipalities may be prohibited from taxing the sale of recreational marijuana. Further, he believes that a value-specific sales tax imposed before Measure 91's passage may stand up to a court challenge. A number of cities in Oregon are staking out similar positions.

Speaking at the hearing Thursday, local resident Gary Miller questioned the council's approach.

Miller said, "I have a problem with the political drive to implement this tax. Does the city need the revenue?"

Miller went on to describe the wording in Measure 91 that specifically prohibits local taxation of recreational marijuana sales. Through OLCC, the state itself is imposing taxes on the marijuana sales. Twenty percent of the taxes collected statewide are to be returned to the cities where the marijuana sales occurred. These funds are to be earmarked for local enforcement, education, and rehab issues.

"The cities seem like a bunch of hyenas," said Miller, "trying to grab whatever revenue they can even though the potential law specifically prohibits local taxation. Is this good governance?"

Bryant took issue with the "clearly stated" taxation issues in Measure 91. He suggested that if the measure passes there will be significant litigation due to the differences in interpretation of the language of the law.

Mayor Brad Boyd shared his understanding that if the city did not pass the tax now they would never have the opportunity to tax local sales in the future, but if the council did pass a tax measure now, they would at least have the option to enforce the tax or revoke it in the future.

Other municipalities have indicated that they were passing a high local tax rate to discourage recreational sales within their city limits.

It should be noted that this tax is not in any way related to the issue of medical marijuana. The issue of allowing medical marijuana sales in Sisters is on the November 4 ballot for local residents to decide. The consensus opinion of the council is that if the electorate chooses to allow medical marijuana dispensaries in the city, as a prescribed medicine, medical marijuana should not be taxed locally.

In other council business, the council approved a modification to the city building code that will allow the building of higher-density developments of single-family homes in designated areas within the city. There were two types of developments approved: they are cluster homes and cottage homes.

Both designations represent the building of smaller homes in a planned community environment that is designed to promote community within the development. There is a minimum of four homes for each development.

The cottage approach allows smaller (1,200-square-foot) homes that are designed with senior couples or singles in mind. The houses face each other rather than the street. They look onto a common area with community paths. Both private and community landscaping are required as part of the design. Large porches and open floor plans are featured.

Foot traffic is encouraged by the plot plan layout. It is anticipated that there will be much less focus on vehicle use, so garages are not included, and most plans will have only on-street parking.

The parking issue, especially for the cluster housing designation, remains an open topic, with the planning commission requesting to revisit the concept. Earlier in the month, Commissioner Bob Wright made a significant issue of requiring off-street parking and garages for this type of development.

Wright's view is not endorsed by the planning commission for the cottage development designation but remains an open discussion for the cluster designation.

Also on Thursday, community gardens stalwart Marvin Benson convinced the council to grant his request for a community fund grant to help offset the cost of a stick-built greenhouse for the gardens. The council grant was $800.

In light of last year's expensive collapse of the hoop-type greenhouse at Sisters Middle School, the community gardens group decided to upgrade their already-funded hoop greenhouse plans to a more substantial stick-built version.