Monterey County cannabis cultivators asking for tax freeze amid COVID-19 pandemic

SALINAS, Calif. (KION) This 4/20 is being celebrated differently than years past by cannabis lovers and growers alike. Amid the changes during the coronavirus pandemic, cannabis cultivators in Monterey County are asking for a freeze and a reduction in cultivation tax.

“This is not a cry for help so that we can intake more money, this is so we can sustain our businesses,” CEO of Riverview Farms Michelle Hackett said.

Riverview Farms grows, packs and sells cannabis. Hackett says they've seen at least a 50% reduction in sales.

“Sales are down, which causes the dispensaries to pay slower and that really affects our tax flow,” Riverview Farms sales representative Phil Speciale said.

Monterey county cannabis cultivators pay $5.00 in taxes per square foot. That rate is expected to jump to $6.00, but cannabis cultivators are asking for a reduction to $2.50 per square foot.

Nearly $15 million in cannabis taxes were generated in Monterey County over the last fiscal year from cultivators.

“The taxation for cannabis is much different than any other commodity sold in the Salinas Valley. We are being hit in every avenue: nursery has a tax, cultivation has a tax, there’s a retail tax, the county is requesting a tax,” Hackett said.

However, on 4/20 some local dispensaries say they’re doing just fine with deliveries and online orders.

“I think it’s mainly people wanting to stock up on products and stay home as much as they can, which is nice," Higher Level Assistant General Manager Alex Ledesma said.

Tuesday, the county board of supervisors will discuss the possible tax freeze.

“Our economy has stopped as we know it. We need some time to rebound, and get back to business as usual. And as we all know, we don’t know when that will take place,” Hackett said.