To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
SUBJECT:
title
Consumer Price Index Increases on Cannabis Excise Tax Bills
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive the staff report on the consumer price index increases on cannabis excise tax bills, and direct staff accordingly; and
2. Take other action as appropriate.
Body
SOURCE OF FUNDING:
General Fund
DISCUSSION:
On March 3, 2020, your Board had a discussion concerning the county's legal cannabis industry and the concerns raised by cannabis business owners and farmers that the burden of local taxes imposed on their industry disincentivizes compliance and encourages continued illegal cultivation. Your Board considered a stay of the consumer price index (CPI) increase for the 2020 tax bills, because a stay on collection of the CPI increase would provide tax relief and planning capabilities to those who are struggling to establish a sustainable business model. Your Board directed staff to bring back general information concerning the county's use of CPI, and the impact of CPI on budgetary practices, and options to provide relief to cultivators as it relates to CPI increases.
The CPI represents changes in prices of all goods and services purchased for consumption by urban households, such as food, housing, transportation, medical care, and education. User fees (such as water and sewer service) and sales and excise taxes paid by the consumer are also included. CPI is the most widely used measure of inflation and is commonly used to ensure that revenues keep pace with cost increases. The Bureau of Labor Statistics (BLS) publishes Consumer Price Indexes for the Unites States and various geographic areas. The County of Humboldt includes a CPI factor in calculating revenues such as fees and charges, tax assessments, property taxes and cannabis excise taxes, among others.
Effective January 1, 2017, Chapter 9, ...
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