TO: GENERAL GOVERNMENT STANDING COMMITTEE
FROM: Supervisor Haschak
MEETING DATE: June 26, 2024
DEPARTMENT CONTACT:
Supervisor Haschak
PHONE:
707-463-4221
TIME ALLOCATED FOR ITEM: 45 Minutes
AGENDA TITLE:
title
Discussion and Possible Action Including a Recommendation to the Board of Supervisors to Consider a Reduction in the Cannabis Business Tax for Calendars Year 2025 and 2026
(Sponsor: Supervisor Haschak)
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RECOMMENDED ACTION/MOTION:
recommendation
Recommend the Board of Supervisors consider a reduction in the Cannabis Business Tax of 40% for calendar year 2025, and 35% for calendar year 2026.
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PREVIOUS BOARD/BOARD COMMITTEE ACTIONS:
Ordinance No. 4361 adopted Chapter 6.32 - Cannabis Business Tax on August 2, 2016. March 2, 2022, the Board directed staff to prepare Amendments to the Cannabis Business Tax to create a procedure where cultivation sites could be fallowed with relief from the minimum tax requirements; this was brought back to the Board on May 17, 2022. April 19, 2022, the Board directed staff to return with an action to reduce Cannabis Business Tax Collection, including the minimum business tax, by 50% for two years starting in Tax Year 2022/23 and require tax compliance for Cannabis Permit Renewal. February 27, 2023, the General Government Committee recommended the Board take action to approve the Cannabis Business Tax reduction, a limited penalty and interest amnesty program, and create a tax payment plan. March 28, 2023, the Board adopted an Ordinance amending the Cannabis Business Tax to reduce Cannabis Business Taxes by 50% for calendar years 2023 and 2024.
SUMMARY OF REQUEST/REFERRAL:
The voter-passed Cannabis Business Tax was established in 2016. This tax was reduced 50% by the Board effective April 19, 2022 for Tax Years 2023 and 2024. While it is difficult to recommend the continuation of a tax cut at a time the County is facing a major deficit, cannabis farmers in the regulated system continue to...
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