Trinity County’s Industry-Sponsored Cannabis Tax Secures Victory
November 11, 2020
As of the time of this publication, it appears that Trinity County’s Measure G, which would impose a tax on commercial cannabis operations, is winning by a wide margin of 70.92% to 29.08% (according to the unofficial results from 11/4/20 at 4:14pm). The Law Offices of Omar Figueroa was retained by Trinity County Agriculture Alliance (TCAA), a trade alliance for licensed cannabis professionals in Trinity County, to help legally review and present this tax measure. Senior Associate Lauren Mendelsohn was the lead attorney on the project and played a critical role.
Previously, there was no local commercial cannabis tax in Trinity County, which is part of California’s renowned “Emerald Triangle,” despite the existence of numerous licensed cannabis operators there. TCAA spent countless hours working with industry stakeholders and experts to come up with a unique tax structure that is responsive to the industry’s concerns. Measure G’s cultivation tax rate is based on the weight and type of cannabis harvested, similar to the state cultivation tax. Specifically, it imposes the following “full rates,” which cultivators would pay a percentage of depending on the size of their harvest:
- Cannabis flower: $15.44/pound
- Cannabis leaves: $4.59/pound
- Fresh cannabis plant: $2.16/pound
For each category, the first 100 pounds harvested would be taxed at up to 25% of the full rate; more than 100 pounds through 400 pounds would be taxed at up to 50% of the full rate; more than 400 pounds through 1000 pounds would be taxed at up to 75% of the full rate; and more than 1000 pounds would be taxed at 100% of the full rate. The measure also includes a 2.5% gross receipts tax on retail licenses within Trinity County, though retail licenses are not yet available there.
Due to COVID-19, gathering signatures for this initiative was more challenging than usual. Even still, despite the pandemic and a short timeframe, TCAA managed to collect enough signatures to have Measure G placed on the ballot. TCAA gathered 1,216 signers in only 5 days, which represents 16% of Trinity County’s registered voters and ~10% of the population. A competing cannabis tax measure sponsored by an anti-cannabis group gathered enough signatures to qualify, but the petition was deemed insufficient by the elections office due to irregularities and formatting errors within the petition.
In response to the results, TCAA’s Board issued the following statement: “We hope the success of this county tax measure will help lead the way towards cannabis tax reform regionally and across the state towards a system of taxation that is more in-line with other crops and products while still protecting the smallest, most environmentally conscious cultivators.”
The Trinity County Agriculture Alliance is the first trade association of the county’s legal cannabis industry, with a mission to foster an ethical, sustainable, and prosperous cannabis industry in Trinity County by empowering members to advocate for their interests, promote their value, and support the communities they call home.
The Law Offices of Omar Figueroa is honored to have assisted in this effort, and we look forward to future opportunities to help enact sensible cannabis regulations that benefit local communities while being responsive to this industry’s unique needs and challenges.
This information is provided as a public educational service, and is not intended as legal advice. For specific legal questions regarding cannabis laws, regulations, or ordinances, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential consultation.