To: Board of Supervisors
From: County Administrative Office
Agenda Section: Time Certain Matter
Vote Requirement: Majority
SUBJECT:
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10:30 am - Update on Cannabis Cultivation Excise Tax
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive an update on past due billings, suspension regulations, and estimated administrative costs;
2. Set the Tax Year 2025 tax rate for Measure S at 10% of the normal cost, or choose one of the alternatives discussed in the report;
3. Direct staff to take necessary actions to implement the direction of the Board; and
4. Take other action as necessary
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STRATEGIC PLAN:
This action supports the following areas of your Board's Strategic Plan.
Area of Focus: A Diverse, Equitable & Robust Economy
Strategic Plan Category: 2001 - Promote strong economic resiliency and growth
DISCUSSION:
Last October your Board took several actions related to local cannabis cultivation, including requiring cultivators with outstanding balances to enter into payment plans, develop regulations allowing for suspension of permits for unpaid fees and taxes, and reinstating the Measure S tax at 10% the normal cost for Tax Year 2025. This item provides an update on activity that has taken place since that meeting, and considerations for future actions, including whether to continue with a 10% tax rate next year, or consider another rate or tax structure.
Payment Plans and Revocation of Permits for Unpaid Taxes
Payment Plans/Unpaid Balances
One action your Board took last fall was to require cultivators to enter into a payment plan by June 30, 2024, with balances to be paid in full by March 31, 2025. Nearly half of cultivators with past due balances have signed up for payment plans, and less than 10% of the total balance has been paid since October 2023. Below is information on where the county stands in regard to accounts with a balance:
At the time your Board took this action, the county had 962 accoun...
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