Title
Introduce, waive reading, and set July 13, 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 set a tax rate for outdoor commercial cannabis cultivation.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors introduce, waive reading, and set July 13, 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 set a tax rate for outdoor commercial cannabis cultivation.
SUMMARY/DISCUSSION:
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 ("TTC"). The following is a retrospective of Board of Supervisors action as it relates to the cannabis business tax rates.
In Fiscal Year ("FY") 2016-17, Ordinance Number 5274 was adopted which imposed a County general tax for commercial cannabis businesses in the unincorporated area, contingent upon voter approval of Measure Y. In the November 2016 General Election, Measure Y was approved by nearly 96,000 Monterey County residents, or approximately 74% of the vote. The maximum tax rates approved are as follows: twenty-five dollars ($25.00) per square foot on cultivation with an annual adjustment thereafter by Consumer Price Index ("CPI"); five dollars ($5.00) per square foot on nurseries with annual CPI adjustment thereafter; and ten (10%) percent of gross receipts on manufacturing, distributing, testing, dispensing, and delivering commercial cannabis with no CPI adjustment.
The amount of square footage taxed is based on the amount of square footage allowed under the commercial cannabis business permit ("CNB") the business obtains pursuant to Monterey County Code Chapter 7.90. Measure Y went into effect on January 1, 2017 and the TTC began collecting commercial cannabis business taxes at the following rates: $15.00 per square of c...
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