The new amendment to the cannabis tax ordinance, crafted by Supervisor Maureen Mulheren, reduces cannabis business tax by 50% for this year and 2024, establishes an amnesty program for penalties and interest, and sets up a tax payment plan for delinquent taxes. Cannabis businesses pay a flat rate minimum tax, with a 10% penalty plus interest if it’s unpaid. The penalty goes up to 25% if it’s unpaid for more than a month. The amended ordinance authorizes the Treasurer-Tax Collector to forgive penalties and interest for the tax years between 2018 and 2021. She is also authorized to enroll delinquent tax payers in a payment plan starting next month and ending on June 30, 2025.
But expectations for the new policy vary widely, from fears that the county will lose money by not collecting the full amount to hopes that growers will have a chance to gain their footing as the market collapses and full licensure remains elusive for many. A brief staff report projects that a 50% reduction in cannabis business taxes over the next two years will result in a revenue loss of $750,000. Gjerde said he wished more information had been available when the board originally discussed the policy on March 14. At that time, Williams cast the lone dissenting vote…