For a little over a year, Oregon has been a recreational marijuana state, and as grand as it has been, this new opportunity hasn’t come without growing pains. From constant changes in regulations to the switch from Oregon Health Association rule to Oregon Liquor Control Commission rule, it’s been difficult for growers, processors, and sellers to keep up. And it’s about to become even costlier with the introduction of a new “compliance fee” for concentrates, edible, and flower testing.
For whatever reason, dispensary customers are well informed of the cannabis tax dropping to 18% but completely in the dark about the new, massive compliance fee that will inevitably affect the price of cannabis products. The new compliance fee varies depending on product, weight, quantity, and company. For example: Edible companies were paying $100 to get their edibles tested so dispensaries could sell them. As of October 1st of this year, edible companies will now have to pay a whopping $1,200 to test each product. That’s a $1,000+ increase to their processing costs, requiring them to boost their prices when selling to dispensaries in order to be able to make any sort of profit from that product. Dispensaries then have to raise the retail price of the product so they can manage a profit as well.
At the dispensary I work at, our first compliant edible went from being $6.25 retail before October 1st to $10 retail pretty much overnight. The prices are going up and the THC levels are going down (but that’s for another article).
While the idea and intent behind legalizing is to help those in need get access to natural medicine without it going on their record, it seems as though the OLCC have ulterior motives. With one of their board members/lawyers conveniently owning the only lab to be completely compliant for new testing procedures on October 1st, they’ve taken no time in paving themselves a path to a shady and greedy reputation.