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File #: 24-0821    Version: 1 Name:
Type: Ordinance Status: Consent Agenda
File created: 8/22/2024 In control: County Counsel
On agenda: 9/10/2024 Final action:
Title: Introduction and Waive First Reading of an Ordinance Amending Section 6.32.050 of the Mendocino County Code to Provide, for Cannabis Cultivation and Nursery Operations, a Reduction in the Cannabis Business Tax for Tax Years 2025 and 2026
Sponsors: County Counsel
Attachments: 1. Ordinance Summary, 2. Ordinance - Cannabis Tax Amendment (Clean), 3. Ordinance - Cannabis Tax Amendments (redline)

To:  BOARD OF SUPERVISORS

From:  County Counsel

Meeting Date:  September 10, 2024

 

Department Contact:  

Jared Schwass

Phone: 

707-234-6885

 

Item Type:   Consent Agenda

 

Time Allocated for Item: N/A

 

 

Agenda Title:

title

Introduction and Waive First Reading of an Ordinance Amending Section 6.32.050 of the Mendocino County Code to Provide, for Cannabis Cultivation and Nursery Operations, a Reduction in the Cannabis Business Tax for Tax Years 2025 and 2026

End

 

Recommended Action/Motion:

recommendation

Introduce and waive the first reading of an ordinance amending Section 6.32.050 of the Mendocino County Code to provide, for cannabis cultivation and nursery operations, a reduction in the Cannabis Business Tax for tax years 2025 and 2026.

End

 

Previous Board/Board Committee Actions:

On June 26, 2024, during the General Government Committee meeting, Supervisors Haschak and McGourty approved referring and recommending this item to the full Board of Supervisors.  On July 23, 2024, the Board of Supervisors considered and provided staff direction to prepare this ordinance amendment.                     

 

Summary of Request

Two years ago, when the Board first considered a reduction of the Cannabis Business Tax, (on April 19, 2022), the Board then expressed a desire to reduce the Cannabis Business Tax for cultivation and nurseries on a temporary basis for two years while the initial State and local licensing process was occurring and because of current market conditions. At that time, the Board approved a 50% reduction in Cannabis Business Tax for 2023 and 2024. Per the discussion at the June 26, 2024, General Government Committee meeting, cannabis cultivators continue to struggle with both market conditions and the cost of local and state regulations.  To reduce this strain and allow a larger number of cultivators to enter, and remain in, the regulated market through the local permit program, the General Government Committee recommended this item to the full Board.  On July 23, 2024, the Board directed County Counsel to draft an ordinance amendment extending the Cannabis Business Tax reduction for 2025 and 2026 in the amount of 40% and 35% respectively.

 

Alternative Action/Motion:

Provide alternate direction.                     

 

Strategic Plan Priority Designation: A Thriving Economy

 

Supervisorial District:  All

                                          

Vote Requirement:  Majority

                                          

 

 

Supplemental Information Available Online At: N/A

 

Fiscal Details:

source of funding: N/A

current f/y cost: N/A

budget clarification: N/A

annual recurring cost: N/A

budgeted in current f/y (if no, please describe): N/A

revenue agreement: N/A

AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: Yes

CEO Liaison: Executive Office                                                               

CEO Review: Yes                                            

CEO Comments:

 

FOR COB USE ONLY

Executed By: Atlas Pearson, Senior Deputy Clerk

Final Status: Approved

Date: September 10, 2024