File #: 22-096    Name:
Type: General Agenda Item Status: Passed
File created: 1/21/2022 In control: Board of Supervisors
On agenda: 2/1/2022 Final action: 2/1/2022
Title: Introduce, waive reading of, and set March 1, 2022 at 10:30 a.m. as the date and time to consider adoption of an ordinance to: a. Amend Chapter 7.100 of the Monterey County Code to reduce the commercial cannabis business tax rates for mixed-light, indoor, and outdoor cultivation and distribution; and b. Amend Chapter 7.100 of the Monterey County Code to repeal the automatic increases on the County's commercial cannabis business tax rates; and c. Place a stay on delinquent commercial cannabis tax account penalties and fines on unpaid installments for the 3rd Quarter of Fiscal Year 2021-2022 of the annual commercial cannabis business tax imposed on cultivation activities provided the account is paid in full by July 1, 2022, in which case all penalties and fines will be immediately due and payable.
Attachments: 1. Board Report, 2. A. Cannabis Committee Reports on Wholesale Pricing (21-966 and 21-1053), 3. B. Draft Ordinance (red-line version), 4. C. Draft Ordinance (signed clean version), 5. D. Impacts of Approved Reductions to Cannabis Tax Rates, 6. PowerPoint Presentation, 7. Completed Board Order Item No. 9
Title
Introduce, waive reading of, and set March 1, 2022 at 10:30 a.m. as the date and time to consider adoption of an ordinance to:
a. Amend Chapter 7.100 of the Monterey County Code to reduce the commercial cannabis business tax rates for mixed-light, indoor, and outdoor cultivation and distribution; and
b. Amend Chapter 7.100 of the Monterey County Code to repeal the automatic increases on the County's commercial cannabis business tax rates; and
c. Place a stay on delinquent commercial cannabis tax account penalties and fines on unpaid installments for the 3rd Quarter of Fiscal Year 2021-2022 of the annual commercial cannabis business tax imposed on cultivation activities provided the account is paid in full by July 1, 2022, in which case all penalties and fines will be immediately due and payable.
Report
RECOMMENDATIONS:
Introduce, waive reading of, and set March 1, 2022 at 10:30 a.m. as the date and time to consider adoption of an ordinance to:

a. Amend Chapter 7.100 of the Monterey County Code to reduce the commercial cannabis business tax rates for mixed-light, indoor, and outdoor cultivation and distribution; and
b. Amend Chapter 7.100 of the Monterey County Code to repeal the automatic increases on the County's commercial cannabis business tax rates; and
c. Place a stay on delinquent commercial cannabis tax account penalties and fines on unpaid installments for the 3rd Quarter of Fiscal Year 2021-2022 of the annual commercial cannabis business tax imposed on cultivation activities provided the account is paid in full by July 1, 2022, in which case all penalties and fines will be immediately due and payable.

SUMMARY
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 on the implications of the decline in wholesale price points for comm...

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