To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
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Recommended Actions to Address Cannabis Permit Holders and Applicants with Delinquent Excise Taxes and Unpaid Application Costs
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors direct staff to take the following actions
1. Implement the Proposed Actions listed below (a-d) for cultivation sites with delinquent taxes; and
2. Implement the Proposed Actions listed below (a-d) for applicants and permit holders who have not paid their permit processing fees.
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SOURCE OF FUNDING:
Current Planning (1100277) and allocated General Fund contribution.
DISCUSSION:
At the Board of Supervisors meeting of Oct. 3, 2023, staff was directed to develop an approach to address cannabis permit holders who were delinquent in paying their Measure S taxes, not paying the cost associated with processing their permit or not paying for the required annual inspection. This report includes a proposal to provide opportunities for cannabis applicants and permit holders to come current on their taxes and permit costs and to provide consequences if this is not accomplished.
1. Measure S Taxes
At the Oct. 3 meeting a list was provided showing 962 permit holders owing a total of $14,193,000. This list has not been thoroughly examined but it is known that many of these tax bills were associated with Interim Permits and are no longer active cultivation sites. One such example, the first entry, is for $481,109.20. This property was illegally expanded, fined, continued to cultivate, was raided by the Sheriff, and ultimately the applicant left, and the property reverted to the lien holder. This is a tax that is owed but is unlikely to be paid.
Information from the Treasurer-Tax Collector shows there are approximately 307 approved cannabis cultivation permits owing $4,058,763.61 in unpaid Measure S taxes. There are also 78 ...
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