Cannabis Permits & Licenses in Eugene, OR

Required for all LLCs; annual report required separately

Applies to all LLCs

Renewal every 2 years; required if using trade name

Prerequisites include land use compatibility, security plan, zoning approval. Effective rules as of 2023 updates.

Requires commercial kitchen compliance, extraction plan, lab testing protocols

Requires video surveillance, seed-to-sale tracking (CTS), local land use approval

Mandatory for all transfers between licensees except direct producer-to-retailer

All licensees must use OCCS/Biotrack CTS for seed-to-sale tracking

Background check required; 21+ age minimum. Applies to all workers at licensed premises.

All businesses, including cannabis, must register with the Oregon Secretary of State to form an LLC. This is a prerequisite for all tax registrations. Fee as of 2023 for domestic LLC filing.

All cannabis businesses selling tangible goods must register for sales tax. Cannabis products are subject to state sales tax unless specifically exempt. However, note that most cannabis sales are wholesale-only and taxed differently; retail sales to consumers may be subject to sales tax depending on license type. See OAR 150-315-0105.

The CAT applies to businesses with $1 million or more in Oregon taxable revenue in the prior year. Cannabis businesses are not exempt. Rate is 0.517% on revenue over $1 million. Filing frequency: quarterly. Due dates: 20th day of the month following the close of each quarter (April 20, July 20, October 20, January 20).

Required for all employers in Oregon, including cannabis businesses. Employers must withhold state income tax from employee wages. Filing frequency depends on liability: monthly or quarterly. Due dates: 15th day of the month following the reporting period.

All employers in Oregon must register for unemployment insurance (UI) tax. Cannabis businesses are not exempt. Employers pay UI tax on first $54,500 of each employee’s wages (2024 rate varies by experience rating, minimum 0.3%, maximum 3.4%). Filing frequency: quarterly. Due dates: last day of the month following each quarter (April 30, July 31, October 31, January 31).

All cannabis businesses must register for the Oregon cannabis excise tax. Tax is imposed on the first sale of cannabis from a licensed producer to a processor or wholesaler at $1.00 per gram for flower, $0.50 per gram for leaf, and $2.00 per seed. Alternatively, 17% of market value for recreational cannabis. Filing frequency: monthly. Due date: 20th day of the following month.

Some jurisdictions, including Portland, Multnomah County, and Eugene, impose a local business license tax or commercial activity tax. For example, Portland's Business License Tax is $75 base plus $1.20 per $1,000 of taxable revenue over $100,000. Registration is typically through the Oregon Department of Revenue if administered statewide, or directly with the city. Verify local requirements based on business location.

All Portland businesses must register; cannabis subject to OLCC state license verification. Fees per Portland City Code Chapter 7.02.

Required for OLCC licensure per Portland Zoning Code 33.439. Specific zones allowed (e.g., IG1, IR). Effective zones updated 2023.

Cannabis operations must also comply with county land use; see MCC 7.08.

FTC enforces truth-in-advertising laws. Cannabis businesses must avoid deceptive claims (e.g., unsubstantiated health benefits). Even though cannabis is federally illegal, FTC has taken action against companies making false CBD claims. Applies to all consumer-facing marketing, including websites and social media.

All U.S. employers must verify identity and work eligibility. Cannabis businesses face unique challenges due to federal illegality, but I-9 is still mandatory. Use of E-Verify is not required unless mandated by state or contract, but increasingly common.

Required for grow facilities, retail fit-outs per Portland Building Code (CBC 2021 edition).

High-hazard occupancy; PFB Code 105.6. Specific to cannabis per IFC Chapter 38.

Required post-construction per PCC 24.10.

Cannabis signs restricted (no leaves, 33.430.040). PCC Chapter 32.48.

Required per IFC 907 for Group M/R occupancies.

Cannabis-specific per Salem Revised Code 6.05; OLCC verification required.

Required under Eugene Code 9.4280. Updated 2022.

Rare; county-specific zoning per Title 40 CCC.

Applies if handling non-exempt edibles; OHA/OLCC overlap. MCC 10.300.

Required for all employers with one or more employees in Oregon, including part-time and family members over 18. Sole proprietors may elect out if no employees. Cannabis businesses are not exempt. Coverage must be obtained through the State Accident Insurance Fund (SAIF) or a licensed private carrier approved by Oregon.

OLCC Rule 845-025-2010 requires applicants to maintain general liability insurance of at least $1 million per occurrence. Required for all licensed cannabis businesses in Oregon. Not a general business mandate, but mandatory for cannabis licensees.

A $20,000 surety bond is required for all OLCC cannabis license types (producer, processor, wholesaler, retailer). The bond ensures compliance with ORC Chapter 475B and OLCC rules. Must be issued by a surety company licensed in Oregon. Bond remains in effect for the license term and must be renewed annually.

Oregon law (ORS 806.010–806.370) requires all motor vehicles registered to a business to carry liability insurance meeting minimum limits: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage. Applies to cannabis businesses using vehicles for transport of product, equipment, or staff.

Not explicitly mandated by Oregon law or OLCC rules, but strongly recommended for cannabis processors and retailers due to product liability risks. General liability policies often include product liability coverage, but separate endorsement may be needed. Oregon's product liability laws (ORS 30.920) hold sellers strictly liable for defective products.

Not required by Oregon law or OLCC for cannabis businesses. May be advisable for consultants or testing labs, but not mandated for standard cannabis operations (grow, process, sell). Considered a risk management best practice, not a legal requirement.

Not required for cannabis businesses in Oregon, as cannabis is not alcohol. Liquor liability insurance is only relevant for businesses holding an OLCC liquor license for alcoholic beverages, which is separate from cannabis licensing. Cannabis businesses do not serve or sell alcohol under standard licenses.

While all businesses may need an EIN, cannabis businesses are particularly subject to IRS scrutiny under Section 280E, making EIN essential for tax compliance. Required even if no employees exist if excise taxes apply.

Cannabis businesses often meet FLSA coverage due to interstate commerce implications (e.g., equipment, packaging, or digital transactions crossing state lines). Must comply with minimum wage, overtime, and recordkeeping rules. Applies despite federal illegality.

FMLA provides eligible employees with unpaid, job-protected leave. Cannabis businesses with sufficient employee counts must comply, even if state-legal. Federal courts have upheld FMLA applicability regardless of cannabis's Schedule I status.

No federal license exists for cannabis cultivation or sale due to Schedule I status under the Controlled Substances Act. FDA does not approve cannabis for general sale; marketing unapproved drug claims violates FD&C Act. ATF has no role unless alcohol is involved. FCC applies only if using radio spectrum. DOT applies only if operating commercial motor vehicles. Most federal licensing is inapplicable or prohibited for cannabis businesses.

Mandatory under the Controlled Substances Act (CSA), even though cannabis is illegal federally. Registration is required for all commercial cannabis operations in Oregon.

Cannabis businesses are prohibited from claiming most business deductions under IRC Section 280E, even if state-legal. Only cost of goods sold (COGS) is deductible. This creates a significantly higher effective tax rate. Applies specifically to federally illegal businesses, including state-legal cannabis operations.

Federal OSHA covers most private employers with employees. Cannabis businesses must maintain safe workplaces, report fatalities and serious injuries, post OSHA 300 logs, and provide employee training. Specific hazards include extraction processes (solvents), mold exposure, and security risks. Not specific to cannabis but enforced rigorously in high-risk sectors.

Cannabis dispensaries are considered "public accommodations" under Title III of the ADA. Must ensure physical access, effective communication, and reasonable modifications. Applies regardless of federal illegality. Includes website accessibility under recent DOJ guidance.

Cannabis extraction using solvents (e.g., butane, ethanol) may generate hazardous waste regulated under RCRA. Businesses must comply with storage, labeling, and disposal rules. Must register with EPA if generating more than 220 lbs/month of hazardous waste. Specific to certain cannabis operations, not all.

Separate from license renewal fee. Required for all licensed cannabis producers in Oregon. Paid directly to OLCC.

While cannabis is federally illegal, FinCEN requires financial institutions to report suspicious activity. Cannabis businesses must cooperate with banks and maintain AML programs to avoid enforcement.

Required for all Oregon LLCs, including cannabis businesses. Must be filed with the Oregon Secretary of State. Online filing available.

All OLCC cannabis licenses (Tier 1, 2, 3, 4) must be renewed annually. Renewal application and fee must be submitted by December 31. Failure to renew results in automatic expiration.

Many cities and counties in Oregon require separate local cannabis business licenses. Renewal deadlines and fees are set locally. Examples: Portland, Eugene, Medford. Must check with local planning or licensing department.

Cannabis businesses with employees must file federal employment tax forms. Form 941 (quarterly) due by the 15th day of the month following each quarter. Form 940 (FUTA) due January 31. IRS Form 1099-NEC due January 31 for contractors.

All Oregon cannabis businesses must register for a BIN and file sales tax returns. Sales tax return due dates depend on assigned schedule (e.g., monthly filers: due by the 20th of the following month).

Cannabis businesses must collect and remit state sales tax. Filing frequency (monthly/quarterly) is assigned by DOR based on expected revenue.

Cannabis excise tax of 17% is imposed on wholesale value of cannabis transferred to retailers. Must be reported and paid monthly using Form OCC-1000.

All cannabis businesses must maintain detailed records of inventory, sales, transfers, and waste using the Cannabis Tracking System (CTS). Records must be retained for at least 3 years and be available for inspection.

Retailers must display their OLCC cannabis license and required consumer education materials (e.g., health effects, legal possession limits) in a visible location for customers.

Required under Oregon Fire Code (OFC). Inspections ensure compliance with egress, fire suppression, and hazardous material storage rules. Cannabis businesses often store flammable solvents (in extraction), triggering stricter scrutiny.

Local jurisdictions conduct building code inspections to ensure structural safety, accessibility (ADA), and compliance with zoning. Required at startup and periodically thereafter.

Employers must display current BOLI posters including Minimum Wage, Oregon Family Leave Act, anti-discrimination laws, and Workers’ Compensation. Available for free download from BOLI website.

All employers in Oregon must carry workers’ compensation insurance through the State Accident Insurance Fund (SAIF) or a private carrier. Coverage must be maintained continuously.

All cannabis waste must be recorded in the Cannabis Tracking System (CTS) at time of disposal. Waste must be rendered unusable and non-recoverable per OLCC rules.