Title
Adopt an ordinance amending Chapter 7.100 of the Monterey County Code to reduce commercial cannabis business tax rates, remove automatic increases, and waive penalties and interest for cultivation activities in the second and third quarters of Fiscal Year 2021-22.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
Adopt an ordinance amending Chapter 7.100 of the Monterey County Code to reduce commercial cannabis business tax rates, remove automatic increases, and waive penalties and interest for cultivation activities in the second and third quarters of Fiscal Year 2021-22.
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). On December 14, 2021, the Cannabis Program (Program) reported to the Board of Supervisors (Board) on the implications of the decline in wholesale price points for commercial cultivation and the impacts of that decline on the cannabis industry.
The Board directed staff to return with a draft ordinance amending Chapter 7.100 that would reduce the commercial cannabis business tax rates for mixed-light, indoor and outdoor cultivation, reduce the distribution tax rate, eliminate automatic cannabis tax increases each year, and stay penalties and fines related to the tax delinquent accounts of cultivators for the 3rd quarter of Fiscal Year 2021-2022 if paid in full on or before July 31, 2022. If the cannabis delinquent accounts are not paid in full on or before July 31, 2022, then the penalties and interest will be reinstated.
Program staff returned to the Board on February 1, 2022 with the draft ordinance. Upon further discussion and consideration of public comment, staff was directed to return with an updated draft ordinance amending Chapter 7.100 to extend the stay on penalties and fines related to the tax delinquent accounts of cultivators to include the 2nd quarter of Fisca...
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