Or. Admin. Code § 150-475-4040

Current through Register Vol. 64, No. 1, January 1, 2025

Section 150-475-4040 - Psilocybin Tax: Liability for Unpaid Psilocybin Tax

(1) For purposes of this rule, "psilocybin service center operator" has the meaning given under OAR 150-475-4010 and includes, but is not limited to, an officer, member or employee of a corporation, partnership, or other business entity that makes retail sales of psilocybin items to consumers if, among other duties, that individual has:

(a) Authority to see that the psilocybin taxes are paid when due;

(b) Authority to prefer one creditor over another;

(c) Authority to hire and dismiss employees;

(d) Authority to set employees' working conditions and schedules;

(e) Authority to sign or co-sign checks;

(f) Authority to compute and sign psilocybin tax reports;

(g) Authority to make fiscal decisions for the business; or

(h) Authority to incur debt on behalf of the business.

(2) It is the duty of a psilocybin service center operator to hold in trust any amount of psilocybin tax collected from the sale of psilocybin products and to assume custodial liability for amounts to be paid to the department. Any psilocybin service center operator who fails to pay the psilocybin tax when due is subject to penalties, as provided by law, as any other taxpayer who fails to file a return or pay a tax when due.

(3) If a psilocybin service center operator fails to file returns or to pay any collected psilocybin tax when due, any or all officers, members, and employees may be held personally responsible, as provided in this rule, for the returns and payments together with any interest and penalties due.

(4) To be held personally liable for unpaid psilocybin tax under ORS 475A.674, a person must be a psilocybin service center operator. In addition, the person must be in a position to pay the psilocybin tax or direct the payment of the psilocybin tax at the time the duty arises to collect or pay over the psilocybin taxes. The person may be personally liable if the individual was, or should have been aware, that the psilocybin taxes were not paid to the department. A psilocybin service center operator cannot avoid personal liability by delegating their responsibilities to another.

(5) The following factors do not preclude a finding that an individual is liable for the payment of psilocybin taxes:

(a) Lack of willfulness in failing to pay over the required psilocybin tax;

(b) The individual's receipt of remuneration;

(c) Maintenance of full-time employment elsewhere;

(d) Another individual is also liable for the same psilocybin taxes;

(e) A corporate bylaw or partnership agreement position description to the contrary;

(f) Absence of signatory authority on a business bank account;

(g) Absence of bookkeeping or recordkeeping duties;

(h) Absence of authority to hire, fire, and to set working conditions and schedules; or

(i) Delegation to another person any functions indicating liability.

Or. Admin. Code § 150-475-4040

REV 36-2022, adopt filed 12/28/2022, effective 1/1/2023

Statutory/Other Authority: ORS 305.100 & 475A.702

Statutes/Other Implemented: ORS 475A.674