To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
Direction on Future of Measure S Cannabis Cultivation Tax
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive the staff report on the history and current status of Measure S; and
2. Provide direction to staff on one of the following options:
a. Repeal Measure S and direct staff to return with an agenda item effectuating the Board's direction; or
b. Authorize the CAO to contract with HdL Companies (HdL) to conduct a fiscal analysis of the county's cannabis cultivation tax and develop a new tax ordinance to replace Measure S for placement on the November 2026 ballot, at a cost not to exceed $52,800, and return with a supplemental budget to fund HdL's services;
c. If your Board chooses to contract with HdL, direct whether County Counsel should develop the ordinance or if it should be done in coordination with HdL.
3. Provide direction on cannabis excise taxes for cultivation year 2026/tax year 2027.
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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:
Executive summary
This report seeks Board direction on the future of Measure S, the county's cannabis cultivation excise tax. Since its passage in November 2016, Measure S has proven difficult to administer and has not generated the anticipated revenue due to significant changes in the cannabis marketplace. The Board has two primary options to consider: repeal the tax entirely or engage a consultant to conduct an analysis that would later come back to your Board an inform future action, which could include development a replacement tax measure for the November 2026 ballot. If your Board wishes to pursue a replacement measure, you could also decide whether to d...
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