To: Board of Supervisors
From: County Administrative Office
Agenda Section: Time Certain Matter
SUBJECT:
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11:00 a.m. - Potential Updates to the Commercial Cannabis Cultivation Taxation Process
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive the staff report regarding potential updates to the commercial cannabis cultivation taxation process, and take action as appropriate.
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SOURCE OF FUNDING:
General Fund - Cannabis Excise Tax
DISCUSSION:
On December 18, 2018, your Board received a report from the Marijuana Ad Hoc Committee and directed staff to bring back options regarding potential modifications to the county's cannabis excise tax, including, without limitation, a possible amendment to land use permits and changes to the current billing cycles.
Background:
Legal Authority:
California Revenue and Taxation Code Section 31021.5 (formerly California Business and Professions Code Section 19348) allows counties to impose an excise tax, pursuant to existing law, on the privilege of cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling or distributing cannabis or cannabis products. In addition, California Revenue and Taxation Code Section 7284 allows the board of supervisors of any county to impose a license tax upon each and every kind of lawful business transacted in the unincorporated areas of the county.
Development and Approval of the Commercial Cannabis Cultivation Taxation Process:
In April 2016, Fairbank, Maslin, Maullin, Metz & Associates conducted a survey of likely voters in order to gain insight on the probability of a cannabis excise tax passing, and to gauge the priorities expressed by the citizens of Humboldt County. The highlights of that polling are as follows:
* 79 percent of those polled said there was a "great need" or "some need" for more local funding.
* Three-quarters of those polled supported a commercial cannabis cul...
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