Title
a. Receive a report on recommendations from the Board of Supervisors Cannabis Committee concerning ordinance revisions for commercial cannabis tax rates and penalties.
b. Consider the following revisions to the commercial cannabis tax rates and penalties:
1. Amend the tax rate for commercial cannabis cultivation in the range of $4.00 to $8.00 per square foot.
2. Amend tax rate on commercial cannabis businesses as follows:
i. Nursery cultivation: $1.00 per square foot
ii. Manufacturers: 2.5% of gross receipts
iii. Distributors: 2% of gross receipts
iv. Testing: 1% of gross receipts
v. Retailers: 4% of gross receipts
3. Amend the penalty for unpaid commercial cannabis taxes to 10% plus interest after the due date, and then an additional 10% plus interest after one month if the tax remains unpaid.
4. Amend the definition of "canopy" contained in Chapters 7.90 and 7.100 to be consistent with the state's definition.
c. Provide direction to staff as appropriate.
Report
RECOMMENDATION:
The Board of Supervisors Cannabis Committee recommends that the Board of Supervisors:
Receive a report and take action on recommendations from Board of Supervisors Cannabis Committee on the following ordinance revisions concerning the commercial cannabis tax rates and penalties:
a. Determine the appropriate tax rate for commercial cannabis cultivation in the range of $4.00 to $8.00 per square foot.
b. Amend the tax rate for commercial nursery cannabis cultivation to $1.00 per square foot.
c. Amend tax rate on all other commercial cannabis businesses as follows:
a. Manufacturers: 2.5% of gross receipts
b. Distributors: 2% of gross receipts
c. Testing: 1% of gross receipts
d. Retailers: 4% of gross receipts
d. Amend the penalty for unpaid commercial cannabis taxes to 10% plus interest after the due date, and then an additional 10% plus interest after one month if the tax remains unpaid.
e. Amend the definition of "canopy" contained in Chapters 7.90 and 7.100 to be consi...
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