Sonoma County to Lower Cannabis Cultivation Tax as Outdoor Flower Price Drops to $277 Per Pound
Cannabis Business Times
Local officials in Sonoma County, Calif., gave preliminary approval April 16 to lower the cannabis tax rates for cultivators and manufacturers while also hiking the rates for retail operations in unincorporated areas.
A second reading of the amended Cannabis Business Tax Ordinance is scheduled to go before the five-member Board of Supervisors on April 30 after the board unanimously voted to pass the amendment on its initial reading last week.
The amendment would increase the cannabis sales tax from 2% to 3% on dispensary operations, and lower the cultivation and manufacturing rates as follows:
- The tax rate for cannabis manufacturing operations will be lowered from 3% to 1.5%.
- Outdoor cultivation will be taxed at 69 cents per square foot (down from 75 cents).
- Mixed-light cultivation will be taxed at $2.51 per square foot (down from $3).
- Indoor cultivation will be taxed at $7.58 per square foot (down from $12.50).
Several cannabis cultivators who operate in Sonoma County’s unincorporated areas said in the comment section of an annual report commissioned by the county that the square-footage tax structure doesn’t make sense considering they have to pay the tax on the square feet they’re licensed for, regardless of whether they cultivate a full canopy under the license.
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