Cannabis business tax in effect

If you’re going to be in the medical marijuana business in Santa Cruz County, you’re going to have to pay some taxes.

The recently passed Measure E extended the existing cannabis business tax to include any business that cultivates, dispenses, transports, stores, packages or sells cannabis.

Beginning Nov. 9, the taxes take effect. Supporters of the measure said it’s high time all cannabis operators pay to operate.

“I think that’s a great thing for Santa Cruz County,” said Colin Disheroon, the chief executive officer of SC Mountain Naturals. “I think that there needs to be some tweaking with it. There’s going to need to be some modifications on the percentages. Dispensaries have been carrying the burden of the entire tax measure

Cannabis businesses are now required to pay a monthly seven percent tax. Until now, dispensaries have been the primary source of tax revenue, bringing in about $2.4 million to the county annually. The County spends the money on emergency response programs, local job creation and housing.

Disheroon hopes more tax money will now be available for drug and alcohol programs.

“It’s time to stop incarcerating people for cannabis use and it’s time to start embracing it as the real economy that it is here,” he said.

The passage of statewide Proposition 64 legalizing recreational marijuana means pot sales won’t burn out anytime soon. How the new tax will affect prices is anyone’s guess.

“The business will evolve and I think we’ll see that being the trend with all of the businesses,” said Disheroon.

Some say they won’t paying a little extra and understand that marijuana laws are evolving.

“This world needs a lot more of this and if they were to legalize marijuana use — the recreational use and medical use in the United States — I think it would mean a lot more focus on things that are important,” said Tyler Dawson, a county resident.

Businesses working in the cannabis business can register online with the Santa Cruz County Tax collector. Click here.