Katelyn Baker
Well-Known Member
Should a tax be imposed on medical marijuana businesses in Mendocino County?
The Board of Supervisors may seek an answer from voters in the upcoming November election.
County counsel Tuesday is asking the board to discuss and possibly adopt a resolution to present to voters that would establish commercial marijuana business license taxes.
If enacted by a majority of voters in November, a general tax in the unincorporated parts of the county would be imposed on commercial marijuana businesses in Mendocino County beginning Jan. 1, 2017. County officials believe the tax could raise millions of dollars to fund county services.
Services the supervisors could also define on the ballot at the same time as funding for mental health services, maintenance and construction of county roads, and enforcing the codes in ordinances pertaining to marijuana.
While the tax is designed to apply only to commercial medical marijuana businesses, the county said if recreational marijuana is also legalized, the tax would go on to also apply to those businesses as well. Individuals cultivating for personal medical use would be exempt from paying a tax.
County officials would be asking for a 2.5 percent tax rate of gross receipts, or amount received from sales, per fiscal year for commercial marijuana growers.
Cultivators growing 2,500 square feet of marijuana would pay a tax of no less than $1,250 per growing cycle. For cultivations of 2,501 square feet, and up to 5,000 square feet, a tax of at least $2,500 per growing cycle would be imposed. A tax of at least $5,000 per growing cycle would be applied to cultivators growing more than 5,001 square feet of marijuana.
The Board of Supervisors would also be empowered at a scheduled public meeting, beginning with July 1, 2020, to increase the tax rate in 2.5 percent increments, not to exceed a maximum of 10 percent per fiscal year on gross receipts, according to the ordinance.
Commercial marijuana dispensaries would be assessed a 5 percent tax rate on gross receipts per fiscal year through June 30, 2020. The tax rate on dispensaries could also be increased in 2.5 percent increments beginning on July 1, 2020 for a maximum tax rate of 10 percent, as deemed appropriate by the board at a scheduled meeting, according to the proposal.
Other marijuana related businesses including manufacturing, nurseries, testing, transporting, distribution and delivery, would see a flat tax rate of $2,500 per fiscal year through June 30, 2020. On July 1, 2020 and each following year, the ordinance would call for the amount of tax imposed on all marijuana-related business, excluding cultivation and commercial dispensaries, to be adjusted "up to the equivalent to the most recent change" in the Consumer Price Index for all urban state consumers, as noted by the California Department of Industrial Relations. However, no adjustment would be made to decrease the imposed tax.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Mendocino County Voters Could Decide Fate Of Marijuana Business Tax
Author: Adam Randall
Contact: (707) 468-3500
Photo Credit: Creative Commons
Website: The Ukiah Daily Journal
The Board of Supervisors may seek an answer from voters in the upcoming November election.
County counsel Tuesday is asking the board to discuss and possibly adopt a resolution to present to voters that would establish commercial marijuana business license taxes.
If enacted by a majority of voters in November, a general tax in the unincorporated parts of the county would be imposed on commercial marijuana businesses in Mendocino County beginning Jan. 1, 2017. County officials believe the tax could raise millions of dollars to fund county services.
Services the supervisors could also define on the ballot at the same time as funding for mental health services, maintenance and construction of county roads, and enforcing the codes in ordinances pertaining to marijuana.
While the tax is designed to apply only to commercial medical marijuana businesses, the county said if recreational marijuana is also legalized, the tax would go on to also apply to those businesses as well. Individuals cultivating for personal medical use would be exempt from paying a tax.
County officials would be asking for a 2.5 percent tax rate of gross receipts, or amount received from sales, per fiscal year for commercial marijuana growers.
Cultivators growing 2,500 square feet of marijuana would pay a tax of no less than $1,250 per growing cycle. For cultivations of 2,501 square feet, and up to 5,000 square feet, a tax of at least $2,500 per growing cycle would be imposed. A tax of at least $5,000 per growing cycle would be applied to cultivators growing more than 5,001 square feet of marijuana.
The Board of Supervisors would also be empowered at a scheduled public meeting, beginning with July 1, 2020, to increase the tax rate in 2.5 percent increments, not to exceed a maximum of 10 percent per fiscal year on gross receipts, according to the ordinance.
Commercial marijuana dispensaries would be assessed a 5 percent tax rate on gross receipts per fiscal year through June 30, 2020. The tax rate on dispensaries could also be increased in 2.5 percent increments beginning on July 1, 2020 for a maximum tax rate of 10 percent, as deemed appropriate by the board at a scheduled meeting, according to the proposal.
Other marijuana related businesses including manufacturing, nurseries, testing, transporting, distribution and delivery, would see a flat tax rate of $2,500 per fiscal year through June 30, 2020. On July 1, 2020 and each following year, the ordinance would call for the amount of tax imposed on all marijuana-related business, excluding cultivation and commercial dispensaries, to be adjusted "up to the equivalent to the most recent change" in the Consumer Price Index for all urban state consumers, as noted by the California Department of Industrial Relations. However, no adjustment would be made to decrease the imposed tax.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Mendocino County Voters Could Decide Fate Of Marijuana Business Tax
Author: Adam Randall
Contact: (707) 468-3500
Photo Credit: Creative Commons
Website: The Ukiah Daily Journal