File #: 21-1443    Version: 1 Name:
Type: Informational Report Status: Passed
File created: 9/28/2021 In control: Planning and Building
On agenda: 10/5/2021 Final action: 10/5/2021
Title: Recommendations from the Cannabis Ad Hoc Committee addressing needs of the Cannabis Industry
Attachments: 1. Staff Report, 2. Attachment 1 - Draft Letter, 3. Executed Letter to Director of Cannabis Control.pdf

To: Board of Supervisors

From: Planning and Building Department Cannabis Ad Hoc Committee

Agenda Section: Departmental (Cannabis Ad Hoc)

SUBJECT:
title
Recommendations from the Cannabis Ad Hoc Committee addressing needs of the Cannabis Industry
end

RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Direct the Treasurer-Tax Collector to not assess fees for late payment of October 2021 excise taxes and April 2022 payment of excise taxes if all taxes are paid by May 31, 2022.
2. Direct staff to develop options to provide tax incentives for water storage, solar power installation and road improvements which minimize sedimentation of streams.
3. Authorize the Chair to sign a letter to the state advocating regulatory changes to allow licensed cultivators to keep their license active and reduce their cultivation area with a corresponding reduction in state fees and taxes.

Body
SOURCE OF FUNDING:
Preparation of this report comes out of the Planning and Building Department Budget Unit 268.

DISCUSSION:

This report from the Ad Hoc committee seeks Board direction on actions which will put into motion actions to provide immediate relief from the condition of the cannabis market, initiate work on tax incentives to encourage water storage, switch to use of renewable power and to address sedimentation from roadways and direct that a letter be written asking the state to follow Humboldt County's model of allowing reductions in cultivation area and corresponding reduction in fees and tax obligations.

The current state of the cannabis community is characterized by prices below a sustainable level and the inability for many to move their product. At a meeting with the Ad Hoc Committee, 3 weeks ago several cultivators stated they will not be able to pay their Measure S taxes and will not be able to comply with their conditions of approval.

In bringing this forward, the Ad Hoc Committee seeks to be responsive to stated needs and help stabi...

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