Title
a. Receive a status update on the commercial cannabis industry's ability to pay delinquent and current taxes due on or before July 31, 2022;
b. Consider commercial cannabis business tax options and direct staff on which options to further develop then return to the Board of Supervisors; and
c. Provide further direction as appropriate.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Receive a status update on the commercial cannabis industry's ability to pay delinquent and current taxes due on or before July 31, 2022;
b. Consider commercial cannabis business tax options and direct staff on which options to further develop then return to the Board of Supervisors; and
c. Provide further direction as appropriate.
SUMMARY/DISCUSSION
Within the last week the Program has received multiple messages regarding operators' ability to timely pay their commercial business tax on July 31, 2022. These comments were echoed at the Cannabis Program Monthly Industry meeting held on June 13, 2022. Many cannabis industry operators do not believe they can make the commercial business tax payment due on or before July 31, 2022.
The Program requested and gained approval of the Board Cannabis and Budget Committees to bypass and present directly to the full Board. Staff's intention is to inform the Board of a current situation that could impact the collection of the commercial business tax, the vitality of our commercial cannabis businesses, impacts to the progress and completion of infrastructure improvements that will have a direct relation to our local economic businesses, and workforce reductions to name a few.
Staff has had several meetings with CAO Executive management, the Office of the County Counsel, and the Budget Office. On June 13, 2022, the Program scheduled a meeting with the Assistant County Administrative Officer, Budget Director, Office of the County Counsel, Treasurer-Tax Collector Office, and the Program to discuss this matt...
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