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Dispatches from public radio's correspondent at the Oregon Legislature. This is a venue for political and policy coverage of the state government in Salem and its impact on the people of Oregon.

Initial Oregon Cannabis Tax Distribution: $85 Million

Austin Jenkins
Northwest News Network
The Oregon Department of Revenue is set to distribute $85 million in cannabis tax revenue

The Oregon Department of Revenue is getting ready to distribute $85 million in cannabis tax revenue to cities, counties and several state agencies. It’s the first distribution since a tax on recreational cannabis kicked in last year.

The formula for how the money is divided up was first approved by voters and then adjusted by state lawmakers. The largest single amount—some $34 million—will be deposited in the State School Fund. That totals 40 percent of the overall amount.

Another large chunk goes to mental health, alcoholism and drug treatment programs. Some will find its way to cities and counties. That formula is based in part on how many recreational cannabis license-holders are in each location.

Municipalities that ban cannabis sales and production will get a lot less than those that allow it.