Notice
Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. Internal and external Dutchie compliance documentation has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Dutchie provides tools that assist in compliance in many optional configurations. Merchants should consult their own tax, legal and compliance advisors to determine how best to configure Dutchie compliance settings and, in general, how best to operate within the cannabis industry.
In Oregon, hemp products must be tracked in Metrc. Unlike other tracked cannabis (marijuana) products, however, hemp products are not subject to any purchase limit or cannabis tax. This means these products require a unique configuration in Dutchie POS, as outlined in this article.
Before you begin
- Note that Oregon operators should have only two tax categories: Cannabis and Non-cannabis. A non-cannabis tax category is required for setting up tracked hemp products.
- Hemp products are defined very specifically by the OLCC. For this reason, you should consult the OLCC and review their product categorization guide to make sure a hemp product is exempt from tax and purchase limits before setting it up in Dutchie POS as outlined in this article.
Create a product category for tracked hemp products
- Go to Products > Configure.
- Click Add category.
- Enter a Category name.
- Optionally, enter a Master category.
- Leave Purchase limit category blank.
- Leave Available for set as All enabled customer types selected.
- In the Tax categories dropdown, select your non-cannabis tax category.
- Click Add.
Create a tracked hemp product in your Dutchie POS Catalog
- Go to Products > Catalog.
- Click Add product.
- In the Category dropdown, select the product category you created for tracked hemp products.
- In the External category dropdown, select the category that matches the package’s category in Metrc.
- Set Cannabis product to Yes. This tells Dutchie POS that this product must be tracked in Metrc.
- Set Taxable to No.
- Fill in the other fields as needed/required.
- Click Save.
You may notice that, like product categories, individual products also have dropdown menus for Tax categories. This product-level tax category is only used as an override for single products that should be taxed differently than other products in the same product category. So, as long as you’ve assigned the non-cannabis tax category to your hemp product categories, this product-level setting can be left blank.
Hemp products in the Oregon Tax Report by Tax Category
When you run the Oregon Tax Report by Tax Category, hemp products will be included in the [Uncategorized] Metrc Tax Category, for which Taxable Sales and Total Tax Collected should be zero.
If these amounts are not zero, this indicates either that some of your hemp products/categories have incorrect tax settings or that some of your taxable marijuana products are incorrectly categorized as hemp.