Title
Introduce, waive reading, and set for adoption on July 24, 2018, an ordinance revising Chapter 7.100 of the Monterey County Code to reduce the commercial cannabis business tax rates and penalties, and align definitions with state law and other portions of the Monterey County Code.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors introduce, waive reading, and set for adoption on July 24, 2018, an ordinance revising Chapter 7.100 of the Monterey County Code to reduce the commercial cannabis business tax rates and penalties, and align definitions with state law and other portions of the Monterey County Code.
SUMMARY/DISCUSSION:
At the May 22, 2017 Board of Supervisors meeting, the Board approved the reduction of the commercial cannabis business tax rates and penalties. The revisions set forth in Chapter 7.100 of the Monterey County Code reflect the approved cannabis business tax rates, tax delinquent penalty rate and miscellaneous amendments that better align the ordinance with state law. Specifically, the rates have been adjusted to the following:
* For indoor cultivation, the tax rate is $8.00 per fiscal year per square foot of authorized canopy through June 30, 2020, to increase by $1.00 per fiscal year until a maximum rate of $15.00 per square foot is reached, and to increase thereafter based on the Consumer Price Index;
* For mixed light cultivation, the tax rate is $5.00 per fiscal year per square foot of authorized canopy through June 30, 2020, to increase by $1.00 per fiscal year until a maximum rate of $15.00 per square foot is reached, and to increase thereafter based on the Consumer Price Index;
* For nursery cultivation, the tax rate is $1.00 per square foot of authorized canopy through June 30, 2020, to increase by $1 per square foot per fiscal year until a maximum rate of $5.00 per square foot is reached, and to increase thereafter based on the Consumer Price Index;
* For manufacturers, the tax rate is 2.5% of gross...
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