Title
a. Receive a status update on a proposed Commercial Cannabis Tax Payment Plan; and
b. Provide direction as appropriate.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a status update on a proposed Commercial Cannabis Tax Payment Plan; and
b. Provide direction as appropriate.
SUMMARY/DISCUSSION:
On June 21, 2022, the Board of Supervisors (Board) directed staff to prepare and present a report with specific options for a payment plan for commercial cannabis business operators delinquent on their annual cannabis business tax, intending any such operators to remain in good standing, and hence remain eligible to operate for the pendency of the plan. The Board also directed staff to include options for the potential repercussions if a payment plan was found in default.
Staff met with the California Cannabis Authority (CCA) Executive Director (ED), County Administrative Officer (CAO), Assistant County Administrative Officer (ACAO), Office of the County Counsel (Counsel) and Treasurer-Tax Collector (TTC) staff to review concepts, implications, and processes.
Staff has determined that developing a proposed tax payment plan has a number of complexities which require further analysis. Staff is also reviewing other options which could achieve the intent of a payment plan but needs additional time to work out details and calculate potential fiscal impacts prior to returning to the Board.
Staff will further develop and analyze the payment plan option but also intends to examine other options for the Board to consider in lieu of a payment plan and plans to return to the Board with a report on these efforts as soon as possible. The Program plans to return to the Board on July 26, 2022.
OTHER AGENCY INVOLVEMENT:
The County Administrative Office and Office of the County Counsel contributed to the preparation of the report.
FINANCING:
There is no impact to the General Fund associated with this report.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
The Monterey County Cannabis Program addresses each of the Strategic Initiative Policy Areas that promote the growth of a responsible and legal Monterey County cannabis industry.
Mark a check to the related Board of Supervisors Strategic Initiatives
X Economic Development
X Administration
X Health & Human Services
X Infrastructure
X Public Safety
Prepared by: Joann Iwamoto, Management Analyst, x3017
Approved by: Nicholas E. Chiulos, Assistant CAO, x5145