Title
a. Receive an update on the state of the commercial cannabis industry regarding current County tax rates and ongoing challenges to meet local requirements; and
b. Review options to amend Monterey County Code 7.100; and
c. Direct the Cannabis Program to present selected options to the Budget Committee to identify financial impacts to the current and future fiscal years; and
d. Provide further direction as appropriate.
Report
RECOMMENDATIONS:
It is recommended that the Board of Supervisors:
a. Receive an update on the state of the commercial cannabis industry regarding current County tax rates and ongoing challenges to meet local requirements; and
b. Review options to amend Monterey County Code 7.100; and
c. Direct the Cannabis Program to present selected options to the Budget Committee to identify financial impacts to the current and future fiscal years; and
d. Provide further direction as appropriate.
SUMMARY/DISCUSSION:
On December 14, 2021, the Cannabis Program (Program) presented a report to the Board of Supervisors (Board) outlining a significant decline in commercial cannabis wholesale price points that had severe financial impacts on the industry. The Board directed staff to return in January 2022 with proposed amendments to Monterey County Code (MCC) Chapter 7.100. The following amendments were approved by the Board approved and became effective as of March 31, 2022:
* Indoor cultivation to $7/square foot.
* Mixed-light cultivation to $3/square foot.
* Outdoor cultivation to $1/square foot.
* Reduce the distribution tax to 0% gross receipts.
* For cultivation only, a stay on delinquent Fiscal Year (FY) 2022 Quarter 3 penalties so long as the unpaid amount is paid in full by the end of Quarter 4, July 31, 2022.
The Program meets monthly with a select group of industry representatives and County staff to discuss tax issues and implications. A memo summarizing the outcomes of these meetings was presented to the Board Cannabis Committ...
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