A partial tax holiday for struggling cannabis growers won approval from the Sonoma County Board of Supervisors Tuesday.
The board's action, after lengthy debate, temporarily cuts cultivation taxes by nearly half through the middle of next year. And, the cut is retroactive to last July.
Cultivation taxes vary widely, ranging from $1.12 per square foot to more than ten times that amount, depending on size and whether plants are and grown indoors or outside. A three percent tax on manufacturers and two percent on dispensaries were not impacted by the move.
Local growers have complained long and vociferously that over-production since legalization has sent wholesale prices plummeting. That's while costs to comply with regulations, and steep taxes leave their harvests uncompetitive with clandestinely produced marijuana.
The board intends to revisit the county's taxes on square footage devoted to cannabis grows, possibly replacing it with a tax based on gross receipts.
Back on January 25, 2022 the Board of Supervisors approved a resolution to extend the January 31, 2022 Cannabis Tax Payment Deadline to April 30, 2022. As a result, operators will have until April 30, 2022 to pay the 1st installment/2nd quarter without penalties or interest. The 2nd installment/3rd quarter tax deadline is April 30, 2022.
Both payments will be due on April 30, 2022 if the Board of Supervisors does not take further action before April 30, 2022.
The California Department of Cannabis Control (DCC) is proposing to readopt emergency regulations that consolidate all commercial cannabis regulations. This readoption would allow the emergency regulations to remain in place while DCC completes the regular rulemaking process, which began on Friday, March 4.
Written by Marc Albert and Staff: 16 March 2022