To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
SUBJECT:
title
Recommendation For the Board to Consider Implementation of a Cannabis Excise Tax Suspension/Waiver Program for Tax Year 2021 (collected in 2022) and Tax Year 2022 (collected in 2023)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Direct the County Administrative Office (CAO) to develop a Cannabis Excise Tax Suspension /Waiver program for Tax Year 2021 (collected in 2022) and Tax Year 2022 (collected in 2023) and bring back to the Board for final review and approval a resolution establishing and documenting the program; and
2. Provide additional direction as needed.
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SOURCE OF FUNDING:
Measure S Cannabis Excise Tax - General Fund (1100)
DISCUSSION:
This report seeks Board direction and possible action to create a Cannabis Excise Tax Suspension/Waiver program for Tax Year 2021 and 2022, billed and collected a year in arrears for calendar year 2022 and 2023. This recommendation is a continued response to the current state of the cannabis industry which is experiencing unsustainably low market pricing and an inability to sell existing cannabis inventory. Many cultivators have voiced concern that they will not survive current conditions. The Cannabis Ad Hoc Committee is concerned about the long-term viability of the Humboldt County cannabis industry, particularly those smaller farms who may have fewer financial resources. The county has provided significant resources and accommodations to support the cannabis industry (See Attachment 1).
In order to create immediate relief, the Cannabis Ad Hoc Committee met to discuss possible solutions to assist the cannabis cultivation community with excise tax relief. Proposed is a Tax Suspension/Waiver program that would allow cultivators to request or opt-in to the program and delay payment of the tax year 2021 and 2022 excise taxes until calendar year 2024. Under the pr...
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