Sonoma County Supervisors Vote to Revise Cannabis Business Tax Rates

April 17, 2024

By Lauren Mendelsohn

 

Yesterday, the Sonoma County Board of Supervisors voted unanimously to amend the County’s Cannabis Business Tax Ordinance to revise the tax rates imposed on different types of commercial cannabis operators. (Technically this was the first reading of the ordinance, so it will need to come back for a second reading before being officially approved, which will likely occur at the next meeting of the Supervisors.) The amendments will have the effect of lowering the tax rates on outdoor, mixed-light, and indoor cultivation as well as on manufacturing; and will increase the tax rate on retailers.

The staff report, revised ordinance, and other materials that were considered by the Board when making this decision, including a report from HDL, are available here.

The new tax rates, which will go into effect on July 1, 2024 (assuming the ordinance is officially adopted at the second reading) are below:

Distributors, Testing Labs, and Nurseries are taxed at a 0% rate by the County, which is not changing as part of this update.

Sonoma County’s Cannabis Business Tax Ordinance only applies to cannabis businesses in the unincorporated parts of the County, and not within any of its nine (9) incorporated cities, most of which allow commercial cannabis activities to a certain degree.

The hope is that this adjustment will spur more activity in the County’s legal cannabis market, which has been struggling along with the rest of the industry across the state.

Stay tuned for further updates on cannabis taxes and policies in Sonoma County and around California.

 

This information is provided as a public educational service and is not intended, nor should be construed, as legal advice. For specific questions regarding cannabis or hemp laws in California, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.