File #: 22-724    Name:
Type: General Agenda Item Status: Passed
File created: 7/20/2022 In control: Board of Supervisors
On agenda: 7/26/2022 Final action: 7/26/2022
Title: a. Receive a staff report for implementation of a payment plan option for commercial cannabis cultivation tax to address Fiscal Year 21-22 delinquent payments and additional options to retroactively reduce the tax rates to provide the industry with a fresh start in Fiscal Year 22-23; and b. Consider other issues bearing on the Board's decision on tax rates related to the commercial cannabis industry, including its data reporting practices; and c. Support the creation of a commercial cannabis audit program and consider Cannabis Assignment as a funding source; and d. Provide direction as appropriate.
Attachments: 1. Board Report, 2. A. Cannabis Program FY 22-23 Allocations and Related Job Work Tasks, 3. B. Measure Y, 4. Presentation Item No.pdf, 5. Completed Board Order Item No. 18
Title
a. Receive a staff report for implementation of a payment plan option for commercial cannabis cultivation tax to address Fiscal Year 21-22 delinquent payments and additional options to retroactively reduce the tax rates to provide the industry with a fresh start in Fiscal Year 22-23; and
b. Consider other issues bearing on the Board's decision on tax rates related to the commercial cannabis industry, including its data reporting practices; and
c. Support the creation of a commercial cannabis audit program and consider Cannabis Assignment as a funding source; and
d. Provide direction as appropriate.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Receive a staff report for implementation of a payment plan option for commercial cannabis cultivation tax to address Fiscal Year 21-22 delinquent payments and additional options to retroactively reduce the tax rates to provide the industry with a fresh start in Fiscal Year 22-23; and
b. Consider other issues bearing on the Board's decision on tax rates related to the commercial cannabis industry, including its data reporting practices; and
c. Support the creation of a commercial cannabis audit program and consider Cannabis Assignment as a funding source; and
d. Provide direction as appropriate.

SUMMARY:
On June 21, 2022, the Board of Supervisors (Board) directed staff to prepare and present it with a report with specific options for a payment plan program for commercial cannabis business operators delinquent on their annual commercial cannabis cultivation business tax, assuming participants remain in good standing for the pendency of their plan. The Board also directed staff to provide options for the potential repercussions if an operator under a payment plan defaults.

Over the past weeks, staff met with the California Cannabis Authority (CCA) Executive Director (ED), County Administrative Office (CAO), Assistant County Administrative Officer, Office of the County Counsel (C...

Click here for full text