By Dora Totoian • Of The News-Register • 

Mac council approves fee hikes, hears budget update

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Comments

Fletch

Go Adam! Great question With not such great answer.
Typical for the cannabis industry to be gouged for what I would say is "targeted income".
To me, it almost seems the increased rates for anything cannabis is unethical.
The industry provide an enormous tax benefit to the state. You would think the municipalities would be more constructive for emerging new cannabis business with this in mind.

Don Dix

So a business does what it can to make ends meet during difficult situations to stay afloat -- and the government raises taxes, fees, and fines to fill their revenue gap (except for hard drugs, of course)-- that seems a little self-serving --where does it stop?

McMinnville Planning Department

Planning staff per Councilor Garvin's request are researching the following three scenarios relative to permit fees for Land Use Compatibility Statement (LUCs) reviews for the cannabis industry in McMinnville: 1) annual permit fees; 2) change of ownership fees; and 3) initial start-up fees for processors, producers and retailers.

1) Annual Permit Fees - there is no requirement for a new LUCs annually for cannabis businesses in Oregon. This was a misunderstanding at the City Council meeting. The state requires LUCs for new businesses or locational changes. The City of McMinnville does not have an annual permit fee for cannabis businesses in McMinnville. Cannabis businesses are not being charged nor are they paying any annual permit fees to the City.

2) Change in Ownership - when a cannabis business changes ownership the state views it as a new business requiring a new LUCs application to the state. All LUCs need to be reviewed and approved by the City. The City only charges $60.00 - $70.00 for this review under the hourly rate provisions as described at the City Council meeting.

3) The LUCs Review Permit Fee for Processors, Producers and Retailers - When a business applies for a cannabis license with the state they need to provide a LUCs form as part of their application. This LUCs form is a certification from the City that the business is operating in compliance with City regulations. The review is more time intensive than some other LUCs forms due to the additional criteria in the city's codes for locations and spacing of cannabis retailers. However, the amount of time required could be different for producers and processors as pointed out by Councilor Garvin. The City is undertaking a new evaluation of the permit fees for cannabis business LUCs reviews separating out the three different types of businesses. When this is done it will be shared with City Council and fees will be adjusted if appropriate.

Don Dix

So, Fletch, do you think 'adjusting the fees if appropriate' will actually occur? IMO, not likely!

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