Sonoma County Passes Cannabis Tax Measure

The future recreational industry is beginning to take shape in Sonoma County. The county’s Measure A passed on Tuesday with 72 percent voter approval. The tax affects cannabis businesses in unincorporated areas in Sonoma County, as well as everywhere else other than the nine cities that are located in the county. The tax is expected to generate over $6 million that can cover the cost of regulating recreational cannabis in the county.

Manufacturers, nurseries, distributors, transporters labs and collectives will be taxed at a maximum of 10 percent of gross receipt sales. Starting tax points begin at 5 percent for manufacturers and 0 percent for all others. Cultivators will be taxed at $10 per square foot on outdoor gardens, and $38 per square foot on indoor gardens. Mixed-light operations would be taxed at $22 per square foot.

Lynda Hopkins is Fifth District Supervisor and serves on the Sonoma County’s medical cannabis ad hoc committee. “It’s important to generate enough revenue to cover county costs, but also keep the rates low enough to encourage small businesses to come into compliance,” Hopkins told the Sonoma West Times and News. Hopkins, along with First District Supervisor Susan Gorin, will both create a recommendation to the Board about setting the specific tax rates.

The only significant vocal opposition was raised by The Sonoma County Growers Alliance(SCGA). The alliance has been a long time guardian for small time growers. They believe that Measure A is going to harm small time growers by pushing them beyond the bounds of profitability for boutique growers.

According to plan, the county will begin accepting permit applications July 1, 2017 which will put them to the front of the line when state regulators begin issuing licenses on January 1, 2018. The county will be able to issue business permits to cannabis businesses on December 6, 2017 according to a staff report. Individual cities in Sonoma County are crafting their own rules. Santa Rosa, for instance will vote on cannabis tax on June 6, 2017.