Sonoma County supervisor Gore desires ‘evaluation’ of hashish cultivation tax

After an uproar in local industry sparked by the state’s threat to increase taxes on cannabis cultivation, Sonoma County supervisor James Gore moved late Tuesday to rethink the tax on cannabis growers at a future board meeting .

“I’d like to review some sort of suspension,” said Gore, adding that he hoped the county would put the urgent issue “in some form or way” on an upcoming agenda.

There was no further discussion as the request was made during the public comment section that prohibits regulators from openly discussing an issue.

The Sonoma County’s Cannabis Business Association and Sonoma Valley cannabis enthusiasts urged the county to lift the tax, as stated in the Business Journal’s December 1 report.

Cannabis regulatory attorney Joe Rogoway drafted resolutions that were made available to inspectors and recommended that the district lobby lift the cultivation tax. They also call on the county to abolish or suspend the local cultivation tax for three years.

Rogoway lamented a week ago that the unprecedented tax structure was created after voters in Proposition 64 in 2016 passed adult recreational use based on what farmers could grow on their property. It was based on “the fiction” that had unlimited potential in the industry.

From lobbyists to secondary producers to owners and supporters of pharmacies, many fear the collapse of an industry that is already affected by falling prices, ongoing competition with the illegal market and tax structures that are already burdensome at the federal, state and local levels.

From growers to retailers, cannabis companies pay a wide variety of taxes, including excise duties, sales, and employment. As an insult to assault, the US government levies taxes without even recognizing the industry as legal. But California is taxing and taxing the distribution channel at every turn.

Sonoma County taxes a dozen types of licensed growers between $ 1.12 and $ 12.65 per square foot, depending on the category.

The state announced on November 24th a hike in crop tax rates in January to reflect the rise in inflation, which stands at 6.2% nationwide. Since then, at least one cannabis company, the heads of Flow Kana, based in Mendocino, have told the Sacramento Bee that it may not get paid.

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