To: Board of Supervisors
From: Supervisor Michelle Bushnell
Agenda Section: Consent
SUBJECT:
title
Letter of Support for SB 1074 (McGuire) Cannabis: Excise Tax: Cultivation Tax. (Supervisor Michelle Bushnell)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the Chair to sign the letter of Support
Body
SOURCE OF FUNDING:
N/A
DISCUSSION:
The Board of Supervisors would like to send a letter of support for SB 1074 sponsored by Senator Mike McGuire entitled Cannabis: Excise Tax: Cultivation Tax.
The Humboldt County Board of Supervisors have recently taken steps to help our cannabis cultivators by reducing our Measure S tax requirements for 2022 and by extending the payment dates for 2021. This effort is in our own local control. However, the cannabis community is reeling in state taxes and processes as well.
If passed, SB 1074 would adjust upwards the applicable retail excise tax based on calculations by the Department of Finance tied to estimates around weight-based cultivation taxes (as in effect on June 30, 2022). The bigger change though is that this bill completely eliminates the current cultivation tax as of July 1, 2022. These moves combined essentially shift the California cannabis tax burden to retailers assisting the farmers. This Senate Bill would further support our platform to assist the many cultivators struggling during this volatile time. Therefore, we support SB1074.
FINANCIAL IMPACT:
N/A
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by providing community-appropriate levels of service
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board discretion
ATTACHMENTS:
Letter of Support
SB 1074 for Reference
PREVIOUS ACTION/REFERRAL:
Board Order No.: N/A
Meeting of: N/A
File No.: N/A