Katelyn Baker
Well-Known Member
Santa Cruz - Revenues from Santa Cruz County's cannabis business tax, forecast to be $3.2 million this fiscal year, are falling short of expectations, according to a report to be discussed by county supervisors at 10:45 a.m. Tuesday at the county Governmental Center, 701 Ocean St.
In a midyear update, County Administrative Officer Susan Mauriello pointed out that year-to-date tax receipts total $1,485,000 from 39 cannabis businesses that registered to pay taxes after the Measure E tax was passed Nov. 8. Those 39 represent about 5 percent of the 760 cultivators who completed an online registration process by Nov. 6.
When the state imposes its 15 percent excise tax and an 8 percent sales tax on Jan. 1, a change in local tax rates may be necessary, Mauriello said. The county currently imposes an individual 7 percent tax on cultivation, manufacturing and retail sales – potentially a 21 percent tax on gross receipts. County staff have discussed the conundrum with industry representatives D'Angelo and Jozee Roberto, Erik and Barbara Imhoff, Khalil Moutawakkil, Colin Disheroon, Josh Rich and Stephen Beals.
In the report, Mauriello also states that a majority of cultivators registered anonymously. Of the 271 identifying themselves, the largest number – 66 – are in San Lorenzo Valley, followed by 37 at the Summit, 35 in the Aptos Hills, 26 in Pajaro Valley, 24 in Soquel, 18 in Bonny Doon, 16 in Eureka Canyon, 11 in Carbonera and 8 in Aptos. Counting all registrations, San Lorenzo Valley has 188, the most.
With 13 cannabis dispensaries, Santa Cruz County has one for every 18,000 residents, which Mauriello indicated provides sufficient access; most other counties have one dispensary for every 84,000 residents. All 13 dispensaries have applied for a license but none has been issued due to compliance issues, mostly due to facilities, electrical modification and fire safety. A planning staffer has been assigned to assist with addressing corrections but it's possible not all 13 will get a license, according to Mauriello.
She indicated supervisors may want to allow the Santa Cruz Veterans Alliance to apply for a dispensary license. That group met all the criteria, according to Mauriello, but opted to wait rather than open as a dispensary.
Also, the report states that an ordinance to regulate manufacturing cannabis products has been drafted. If adopted, extraction using volatile hydrocarbons such as butane or hexane or using compressed carbon dioxide at or above 5,000 pounds per square inch would be limited to the county's three manufacturing zones.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Santa Cruz County Cannabis Tax Revenues Falling Short
Author: Jondi Gumz
Contact: 831-423-4242
Photo Credit: Sean Kilpatrick
Website: Santa Cruz Sentinel
In a midyear update, County Administrative Officer Susan Mauriello pointed out that year-to-date tax receipts total $1,485,000 from 39 cannabis businesses that registered to pay taxes after the Measure E tax was passed Nov. 8. Those 39 represent about 5 percent of the 760 cultivators who completed an online registration process by Nov. 6.
When the state imposes its 15 percent excise tax and an 8 percent sales tax on Jan. 1, a change in local tax rates may be necessary, Mauriello said. The county currently imposes an individual 7 percent tax on cultivation, manufacturing and retail sales – potentially a 21 percent tax on gross receipts. County staff have discussed the conundrum with industry representatives D'Angelo and Jozee Roberto, Erik and Barbara Imhoff, Khalil Moutawakkil, Colin Disheroon, Josh Rich and Stephen Beals.
In the report, Mauriello also states that a majority of cultivators registered anonymously. Of the 271 identifying themselves, the largest number – 66 – are in San Lorenzo Valley, followed by 37 at the Summit, 35 in the Aptos Hills, 26 in Pajaro Valley, 24 in Soquel, 18 in Bonny Doon, 16 in Eureka Canyon, 11 in Carbonera and 8 in Aptos. Counting all registrations, San Lorenzo Valley has 188, the most.
With 13 cannabis dispensaries, Santa Cruz County has one for every 18,000 residents, which Mauriello indicated provides sufficient access; most other counties have one dispensary for every 84,000 residents. All 13 dispensaries have applied for a license but none has been issued due to compliance issues, mostly due to facilities, electrical modification and fire safety. A planning staffer has been assigned to assist with addressing corrections but it's possible not all 13 will get a license, according to Mauriello.
She indicated supervisors may want to allow the Santa Cruz Veterans Alliance to apply for a dispensary license. That group met all the criteria, according to Mauriello, but opted to wait rather than open as a dispensary.
Also, the report states that an ordinance to regulate manufacturing cannabis products has been drafted. If adopted, extraction using volatile hydrocarbons such as butane or hexane or using compressed carbon dioxide at or above 5,000 pounds per square inch would be limited to the county's three manufacturing zones.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Santa Cruz County Cannabis Tax Revenues Falling Short
Author: Jondi Gumz
Contact: 831-423-4242
Photo Credit: Sean Kilpatrick
Website: Santa Cruz Sentinel
