TO: Board of Supervisors
FROM: Supervisor Williams
MEETING DATE: May 11, 2021
DEPARTMENT CONTACT:
Supervisor Williams
PHONE:
4441
ITEM TYPE: Consent Agenda
TIME ALLOCATED FOR ITEM: N/A
AGENDA TITLE:
title
Direction to Staff to Begin Fully Assessing, Billing and Collecting Cannabis Business Tax, in the Current Calendar Year, to Initially Focus Expanded Application on Unlawful Cannabis Cultivation Sites that are Subject to Other Enforcement Action; Further to Direct Treasurer-Tax Collector, County Counsel and Code Enforcement to Provide a Report at the End of the Year with Recommendations
(Sponsor: Supervisor Williams)
End
RECOMMENDED ACTION/MOTION:
recommendation
Direct staff to begin fully assessing, billing and collecting Cannabis Business Tax, in the current calendar year, to initially focus expanded application on unlawful cannabis cultivation sites that are subject to other enforcement action; further to direct Treasurer-Tax Collector, County Counsel and Code Enforcement to provide a report at the end of the year with recommendations.
End
PREVIOUS BOARD/BOARD COMMITTEE ACTIONS:
None.
SUMMARY OF REQUEST:
The Mendocino County Cannabis Business Tax, as approved by voters, applies to commercial cannabis cultivation whether lawful or unlawful. However, unlawful cultivators have not yet been assessed or billed for this tax which is assessed and collected from cultivators participating in the County's Cannabis Program. The disparity in collection creates an unfair business practice, negatively impacting licensed and permitted cultivators. Uncollected revenue is in the millions of dollars per year, if not tens of millions of dollars per year. Beginning in the current calendar year, staff should be directed to begin assessing, billing, and collecting the existing Cannabis Business Tax from commercial cultivators whether they are lawfully or unlawfully operating. Current minimum tax calculations are based on permit types, so it...
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