To: Board of Supervisors
From: County Administrative Office
Agenda Section: Departmental
Vote Requirement: 4/5th
SUBJECT:
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Introduction of an Ordinance Repealing Measure S Cannabis Excise Tax
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Introduce the ordinance (Attachment 1) repealing the county's Measure S cannabis cultivation excise tax; and
2. Set the date to adopt the ordinance to repeal Measure S for Feb. 10, 2026; and
3. Direct the Clerk of the Board, within 5 days of adopting the attached ordinance, to publish a pre-adoption summary of the ordinance (Attachment 2), and to post in the office of the Clerk of the Board of Supervisors a copy of the full text of the ordinance.
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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
On Oct. 28, 2025, the Board of Supervisors directed staff to repeal Measure S, the county's cannabis cultivation excise tax. This action implements that direction by adopting an ordinance that amends Humboldt County Code Chapter 719-9 to establish that no cannabis cultivation excise tax shall be due beginning Jan. 1, 2026. This does not impact any past due taxes owed by cultivators.
Background
Measure S was approved by voters in November 2016 and established tiered cultivation tax rates of $1 per square foot for outdoor cultivation, $2 per square foot for mixed-light, and $3 per square foot for indoor cultivation. Since its passage, Measure S has proven difficult to administer and has not generated anticipated revenue due to significant changes in the cannabis marketplace.
At the Oct. 28, 2025, meeting, the Board considered two options: (1) repeal Measure S entirely, or (2) engage a consultant to conduct a fiscal analysis and develop a replacement tax measure. The Board chose Optio...
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