MEETING DATE: 1/25/2022
DEPARTMENT: RESOURCE MANAGEMENT AGENCY
DEPT HEAD/DIRECTOR: Michael Chambless
AGENDA ITEM PREPARER: Robin Bolster-Grant
SBC DEPT FILE NUMBER: 790
SUBJECT:
RESOURCE MANAGEMENT AGENCY - M. CHAMBLESS
(To be heard at 9:00 AM or as soon thereafter as the matter may be heard)
Adopt Ordinance No. 1040 amending section 5.03.180 regarding cannabis business activities tax.
SBC FILE NUMBER: 790
ORDINANCE NO: 1040
AGENDA SECTION:
PUBLIC HEARING - Bottom
BACKGROUND/SUMMARY:
On November 9, 2021 the Board of Supervisors voted to approve several changes to the County Code, including approval of outdoor cannabis cultivation. A portion of the discussion involved current cannabis tax rates and staff was directed to draft a resolution reducing the tax rate for outdoor cannabis cultivation from the current $5.00 to $3.00 per square foot. That resolution was approved by the Board on December 14, 2021.
In conjunction with the reduction in taxes levied for outdoor cannabis cultivation, staff was directed to revisit the way in which the square footage tax is calculated. The current code language bases the tax on strict square footage of canopy without allowances for area not under cultivation or for crop loss.
This method of calculation places an undue burden on cultivators who are taxed on areas that do not produce revenue. The proposed amendment to the calculation language would provide relief to those outdoor growers who either do not utilize a portion of their canopy or suffer crop failure. Such permit holders will be required to provide documentation to support their claims for relief.
On December 14, 2021, the title of Ordinance 1040 was read and your Board accepted formal introduction, waived reading and approved continuing the item to this meeting for adoption.
RESOLUTION OR ORDINANCE NEEDED FOR THIS ITEM:
Yes
CONTRACT NEEDED FOR THIS ITEM:
N/A
CONTRACT AND RFP HISTORY:
N/A
LAST CONTRACT AMOUNT OR N/A:
N/A
STATE IF THIS IS A NEW CONTRACT/ HOW MANY PAST AMENDED CONTRACTS/ OR N/A:
N/A
STRATEGIC PLAN GOALS:
BUDGETED:
N/A
Budget Adjustment Needed: N/A
Unfunded Mandate (Is this a mandate not funded by the State): N/A