Title
a. Introduce, waive reading, and set May 25, 2021 at 10:30 a.m. as the date and time to consider adoption of an ordinance amending Chapter 7.100 of the Monterey County Code to suspend the Fiscal Year 2021-2022 automatic increases on the County's commercial cannabis business tax rates and resume the automatic increases in Fiscal Year 2022-2023 on July 1, 2022; and
b. Provide direction to staff as appropriate.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Introduce, waive reading, and set May 25, 2021 at 10:30 a.m. as the date and time to consider adoption of an ordinance amending Chapter 7.100 of the Monterey County Code to suspend the Fiscal Year 2021-2022 automatic increases on the County's commercial cannabis business tax rates and resume the automatic increases in Fiscal Year 2022-2023 on July 1, 2022; and
b. Provide direction to staff as appropriate.
SUMMARY
Monterey County imposes an annual business tax on cannabis businesses pursuant to Monterey County Code Chapter 7.100 and such tax is collected by the Treasurer-Tax Collector. The Cannabis Program ("Program") staff recently presented a report to the Board of Supervisors Cannabis Committee ("Committee") on implications of the automatic cannabis tax escalator scheduled to take effect on July 1, 2021. The Committee recommended to freeze the automatic cannabis tax increases for a year and directed staff to return to the Board with an amendment to Chapter 7.100.
DISCUSSION:
Implications of the Tax Escalator
Staff has conducted monthly industry meetings and received comments related to the commercial cannabis tax rate escalator where the industry presented various factors to be considered to suspend the automatic increases to tax rates.
While commercial cannabis state licenses and local permits, cultivation square footage, and gross sales have all steadily increased, Program staff acknowledges the concerns raised and continues to identify opportunities to work with oper...
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