JOHN DAY – Working against an election countdown, the John Day City Council adopted a tax on marijuana last week.

The city’s ordinance passed by a 5-0 vote at the Oct. 24 council meeting.

The city joins more than two dozen Oregon cities that have either adopted a tax or were considering one as of last week.

Cities needed to act on tax ordinances before this Tuesday’s general election, which included a vote on a measure to legalize recreational marijuana. Results of that vote were not available at press time, but will be posted online at MyEagleNews.com.

Cities are looking to tax revenue to offset possible costs that may result from marijuana-related businesses.

Mayor Ron Lundbom said the council was trying to be prepared, and the action is in keeping with the attorney’s report on their options. Members saw the tax ordinance as a way to make the best of a bad situation if the measure passes, he said.

The timing was important because Measure 91 includes a clause prohibiting municipalities from enacting local taxes on pot.

City Attorney Jeremy Green noted in an analysis provided to the council that the prohibition on local taxes may not hold up to legal challenge. However, it still made sense to adopt the ordinance before the election so that the taxes are a done deal before Dec. 4, when Measure 91 will kick in if approved by the voters.

The measure approved in John Day sets a 5 percent sales tax on marijuana or marijuana infused products sold as medical marijuana and a 10 percent tax on sales of those products sold outside of the Oregon Medical Marijuana Program.

The tax rate puts them in the middle of the pack among cities imposing taxes, according to a statewide data provided to the council. The cities with the highest tax rates on pot include Fairview, at 15 percent for medical marijuana and 40 percent for recreational, and Sandy and Scappoose, both adopting 20 percent for both types of marijuana.

At the other end of the scale, Ashland and Cornelius were reported to be setting 10 percent for recreational pot, but no tax on medical marijuana.

The John Day ordinance sets the tax on gross sales, and requires the sellers to pay the tax quarterly to the city.

The Prairie City City Council took up the issue at an Oct. 29 city council meeting, where the vote was split, so the measure to establish a tax failed.

Councilors Carole Garrison and Georgia Patterson and Mayor Gary Waterhouse voted yes, with Councilors Kevin Dahlen, Les Church and Viola Rose voting no. Councilor Henry Goslin was absent.

Officials in several other Grant County cities, including Long Creek, Canyon City and Dayville, have discussed the issue in general but haven’t considered ordinances.