Monterey County considers lowering marijuana tax
The debate over marijuana taxes continues in Monterey County.
The Board of Supervisors is considering much lower rates for the next fiscal year, beginning July 1st.
Local growers have said the current rate of $15.00 per square foot of cultivation was a number that would drive them out of business.
Monday, the Monterey County Administrative Office showed their proposal, lowering the rates of many cannabis industry-related taxes. The big debate is over the cultivation tax, which they reduced to $10.00 per square foot.
People in the industry say they need it to be $4.00
“There has been an increase in layoffs and a decrease in workloads, because the operators cannot afford to plant the next harvest,” one speaker said. Another added, “the current taxation is really killing that circle of life.” A third – “(it is) even doubtful at this rate ($10/sq ft.), that our business is going to succeed.”
After about an hour of pleas from business owners and workers, the board’s standing Cannabis Committee agreed to talk about a change.
“(We) can’t keep taxes high, otherwise you’re going to lose those jobs and can’t keep that economic activity,” Monterey County Supervisor, Luis Alejo, told KION.
Alejo and Supervisor John Phillips, are the two members of the board’s cannabis committee. Alejo moved to recommend the full board consider a $4.00 to $8.00 rate, which they will discuss on May 22nd.
People from the cannabis industry that spoke, Monday, said with a rate of four dollars, they can roughly double their production from one million to two million square feet, in the county.
“I’m happy with where we’re headed,” Cannabis Attorney Aaron Johnon, said. “We want to be honest that four dollars at this point is acceptable.”
High tax rates, they say, are a detriment to getting through other challenges and expenses that come with a new and growing industry.
“(The businesses want to) get their electricity connected with PG&E. Some have been waiting for 2 years,” Alejo said. “There’s new water requirements. New state taxes are set to kick in in the next few months.”
