Title
Adopt an ordinance amending Chapter 7.100 (Commercial Cannabis Business Tax) of the Monterey County Code to reduce the commercial cannabis business tax rates for cultivation activities retroactive to January 1, 2023.
Report
RECOMMENDATION:
Staff recommends that the Board of Supervisors:
Adopt an ordinance amending Chapter 7.100 (Commercial Cannabis Business Tax) of the Monterey County Code to reduce the commercial cannabis business tax rates for cultivation activities retroactive to January 1, 2023.
SUMMARY/DISCUSSION
The County imposes an annual business tax on cannabis businesses under Monterey County Code (MCC) Chapter 7.100. That tax is collected by the Treasurer-Tax Collector (TTC). At the November 8, 2022, Board of Supervisors (Board) meeting, the Cannabis Program (Program) was directed to schedule a Special Cannabis Committee (Committee) meeting in November and request time at a subsequent Board meeting to present Committee recommendations on proposed amendments to commercial cannabis cultivation business tax rates. Additional direction was provided to include a concept discussed at a prior Committee meeting-scaled tax rates driven by wholesale pricing-within the proposed cultivation tax rate amendments.
On December 7, 2022, the Program presented an item to the Board on the sliding scale cultivation tax rate concept, which would begin at rates that would offset Program costs based on current cultivation canopy registrations. The Board approved a reduction in tax rates imposed upon cultivation activities retroactive to January 1, 2023, but directed staff to increase the proposed rates by 15%, which is intended to serve as a buffer for additional business closures or operators defaulting on their taxes. Below are the rates updated to updated rates that include this buffer:
* Indoor $2.13/square foot
* Mixed Light $1.46/square foot
* Nursery $0.71/square foot
* Outdoor $0.71/square foot
This option...
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