Katelyn Baker
Well-Known Member
The Humboldt County Board of Supervisors adopted a set of ordinances on Tuesday that will place a medical marijuana cultivation tax proposal before voters this November and will lift the ban on new medical cannabis dispensaries.
The ordinances will need to go back before the board once more for final adoption.
The tax proposal brought in several cannabis cultivators who voiced concerns of over-taxation of small farmers already facing an extensive, often costly leap into the regulated market. Others stated that the tax will result in a narrow profit margin for small farms and allow larger companies to buy them out.
"You're fundamentally altering the landscape of Humboldt County with this," Emerald Heritage Farms founder and principal consultant Dani Burkhart said.
The board also voted to move ahead with a proposal to allow new businesses to temporarily use lands around Humboldt Bay that have historically been reserved for coastal-dependent industries, such as shipping or fishing.
A voter initiative to merge the Treasurer-Tax Collector's and Auditor-Controller's offices into a new Finance Department also was advanced by the board. The board also approved a separate ordinance to increase county parks camping and day-use fees.
CULTIVATION TAX
The county's proposed tax on medical marijuana cultivation was not met warmly by several industry stakeholders that attended Tuesday's board meeting.
The tax initiative would implement a flat tax on all types of medical marijuana cultivation in unincorporated areas and would be assessed on a per square foot of cultivation basis at a rate ranging from $1 to $3.
Tuesday's meeting was the board's third and likely final discussion of the tax measure before it will be placed on the November ballot.
The majority of speakers stated the tax proposal is premature as growers are still in the process of coming into compliance with both the county's and state's new marijuana regulations that took effect this year. Other attendees stated the tax structure penalizes small farmers in favor of larger grows.
"I'm worried this is going to put me in a position where I'm farming for yield rather than for quality," Mattole area farmer and Southern Humboldt Community Alliance member Sunshine Johnston said.
For many supervisors, their response to these concerns can be summarized with the phrase: Welcome to the regulated market.
First District Supervisor Rex Bohn in particular stated that he was hearing negative feedback from other agricultural industry stakeholders for the board's decision to lower the proposed marijuana tax rate earlier this month.
Earlier this year, the board had polled 400 potential county voters on a tax that went as high as $12 per square foot, which received well over the simple majority support that will be needed to pass the measure.
After the passage of California's Medical Marijuana Regulation and Safety Act last year as well as Humboldt County's own regulations in January, Bohn said that the medical marijuana industry is entering into a "new era" of regulation and all the caveats that go along with government oversight.
"You have to come into compliance and you have to pay fees," he said.
The board states it plans to use the tax revenue to fund several county services including public safety, environmental restoration, child and mental health services and drug treatment services.
Should voters approve the tax measure, the county still has several aspects to work through such as what time of year the tax will be collected and how it will verify whether a farm is taxed at the correct amount.
Other nearby counties were also considering their own tax measures on Tuesday, including Mendocino and Lake counties, according to county senior administrative analyst Sean Quincey.
A Trinity County resident and cannabis farm owner who did not give her identity stated that the Trinity County Board of Supervisors were watching Humboldt County to see what direction it took with taxing the industry. She also expressed her fear that the county's tax would likely lead to her having to sell her farm - a sentiment shared by many other attendees.
The board ultimately voted 5-0 to advance the tax measure as written, but also to consider creating a smaller tax bracket for farmers with under 2,000 square feet of cultivation should voters approve the measure.
"Being legal doesn't mean life is going to be easier," board Chairman and 3rd District Supervisor Mark Lovelace said.
DISPENSARY BAN LIFTED
A five-year-old ban on new medical marijuana dispensaries in unincorporated county areas was lifted by the Board of Supervisors on Tuesday. The board also took initial steps to possibly expand the concept of dispensaries to allow for on-site use by patients and "bud-and-breakfast" businesses.
The county placed a moratorium on new dispensaries in 2011 after the U.S. Attorney's Office threatened to sue county officials who adopted marijuana-related ordinances. After extending the moratorium by one year, the board implemented a permanent ban on new dispensaries in 2013 in order to give itself more time to draft regulations on the facilities.
Two medical marijuana dispensaries in the unincorporated area - Wonderland Nursery in Garberville and the Humboldt County Collective in Myrtletown - are currently in operation.
Ken Hamik's Hummingbird Healing Center dispensary followed a similar path to the county's ordinance's. The dispensary was evicted from its McKinleyville location in 2012 after the federal government allegedly sent a warning letter to their landlord. Since then, he and his staff have acquired a new location, but have yet to be able to open it until the ban is lifted.
"We're just looking forward to doing this as soon as possible," Hamik said to the board.
The board simultaneously adopted an ordinance on Tuesday updating the county's dispensary regulations that were approved in August 2015. The ordinance added language to the regulations, which were first drafted in 2011, to include references to the new state and local laws on the industry as well as changing the word "marijuana" to "cannabis and "grow" to "farm."
COASTAL DEPENDENT USES
After a nearly two-hour discussion that included nearly 25 public speakers, the Board of Supervisors advanced an ordinance that would allow new businesses to use lands normally reserved for coastal-dependent industries.
The proposal would modify the county's Local Coastal Plan by allowing new types of businesses to use this coastal-independent industrial land for up to seven years. The change would apply to 1,200 acres of land near Fields Landing, King Salmon, Fairhaven, Manila and Samoa.
Temporary businesses would be required to take several actions such as obtaining a conditional use permit, creating a site restoration plan, and be able to relocate or be removed in a timely manner in order to use the land.
The many public speakers had different views of what the board should do to improve the economic well-being of the county and bay. For former Arcata Director of Community Development Director and Humboldt Bay Development Association Larry Oetker, the current restrictions on these coastal lands has led to infrastructure wasting away rather than be put to use.
"It's basically use it or lose it," he said.
Several speakers called on the board to extend the maximum amount of time a temporary business could use the land from seven years to 10 years or no limit at all. While some argued that allowing these new temporary businesses would improve employment opportunities, others stated that it would do the opposite by reducing the stock of land that coastal businesses could utilize should an east-west railroad corridor between Humboldt Bay and the Central Valley be constructed.
"Because of the long-term consequences to future generations, it requires that a full environmental and economic impact review be done before any changes can be made," McKinleyville resident Susan Rotwein said.
Fourth District Supervisor Virginia Bass, who represents the district where these coastal lands are located, said that the proposal does not block coastal dependent businesses from using the land.
"We need to add vibrancy to the peninsula and this is how we do it," she said.
The Eureka Chamber of Commerce, Congressman Jared Huffman (D-San Rafael), 2nd District Assemblyman Jim Wood (D-Healdsburg), and Green Diamond Resource Company also backed the county's proposal.
The board voted 4-1 to advance the proposal as originally recommended by staff, which still must be approved by the California Coastal Commission before it can be implemented. Bohn said he does not think the proposal will make it through the coastal commission and voted against it himself over concerns that the temporary business operations would inhibit the use of docks if they are not set back far enough.
FINANCE DEPARTMENT AND PARK FEES
The board voted unanimously to approve ballot initiative language for the proposed merger of the Treasurer-Tax Collector's Office and the Auditor-Controller's Office into a single Finance Department. The proposal, meant to address staffing and department efficiency, is set to go before voters in November. Voters will also decide whether the director of the department will be an elected or appointed official.
The board also voted 5-0 to increase existing day-use fees at Big Lagoon and A.W. Way county parks up from $3 to $5 and increasing camping fees at the county's five campgrounds from $20 to $25. The increase was made to temporarily cover increased insurance costs that had the board temporarily considering possibly closing some parks earlier this year.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: County Advances Cannabis Cultivation Tax - Dispensary Ban Lifted
Author: Will Houston
Contact: Times Standard
Photo Credit: Star-Advrtiser
Website: Times Standard
The ordinances will need to go back before the board once more for final adoption.
The tax proposal brought in several cannabis cultivators who voiced concerns of over-taxation of small farmers already facing an extensive, often costly leap into the regulated market. Others stated that the tax will result in a narrow profit margin for small farms and allow larger companies to buy them out.
"You're fundamentally altering the landscape of Humboldt County with this," Emerald Heritage Farms founder and principal consultant Dani Burkhart said.
The board also voted to move ahead with a proposal to allow new businesses to temporarily use lands around Humboldt Bay that have historically been reserved for coastal-dependent industries, such as shipping or fishing.
A voter initiative to merge the Treasurer-Tax Collector's and Auditor-Controller's offices into a new Finance Department also was advanced by the board. The board also approved a separate ordinance to increase county parks camping and day-use fees.
CULTIVATION TAX
The county's proposed tax on medical marijuana cultivation was not met warmly by several industry stakeholders that attended Tuesday's board meeting.
The tax initiative would implement a flat tax on all types of medical marijuana cultivation in unincorporated areas and would be assessed on a per square foot of cultivation basis at a rate ranging from $1 to $3.
Tuesday's meeting was the board's third and likely final discussion of the tax measure before it will be placed on the November ballot.
The majority of speakers stated the tax proposal is premature as growers are still in the process of coming into compliance with both the county's and state's new marijuana regulations that took effect this year. Other attendees stated the tax structure penalizes small farmers in favor of larger grows.
"I'm worried this is going to put me in a position where I'm farming for yield rather than for quality," Mattole area farmer and Southern Humboldt Community Alliance member Sunshine Johnston said.
For many supervisors, their response to these concerns can be summarized with the phrase: Welcome to the regulated market.
First District Supervisor Rex Bohn in particular stated that he was hearing negative feedback from other agricultural industry stakeholders for the board's decision to lower the proposed marijuana tax rate earlier this month.
Earlier this year, the board had polled 400 potential county voters on a tax that went as high as $12 per square foot, which received well over the simple majority support that will be needed to pass the measure.
After the passage of California's Medical Marijuana Regulation and Safety Act last year as well as Humboldt County's own regulations in January, Bohn said that the medical marijuana industry is entering into a "new era" of regulation and all the caveats that go along with government oversight.
"You have to come into compliance and you have to pay fees," he said.
The board states it plans to use the tax revenue to fund several county services including public safety, environmental restoration, child and mental health services and drug treatment services.
Should voters approve the tax measure, the county still has several aspects to work through such as what time of year the tax will be collected and how it will verify whether a farm is taxed at the correct amount.
Other nearby counties were also considering their own tax measures on Tuesday, including Mendocino and Lake counties, according to county senior administrative analyst Sean Quincey.
A Trinity County resident and cannabis farm owner who did not give her identity stated that the Trinity County Board of Supervisors were watching Humboldt County to see what direction it took with taxing the industry. She also expressed her fear that the county's tax would likely lead to her having to sell her farm - a sentiment shared by many other attendees.
The board ultimately voted 5-0 to advance the tax measure as written, but also to consider creating a smaller tax bracket for farmers with under 2,000 square feet of cultivation should voters approve the measure.
"Being legal doesn't mean life is going to be easier," board Chairman and 3rd District Supervisor Mark Lovelace said.
DISPENSARY BAN LIFTED
A five-year-old ban on new medical marijuana dispensaries in unincorporated county areas was lifted by the Board of Supervisors on Tuesday. The board also took initial steps to possibly expand the concept of dispensaries to allow for on-site use by patients and "bud-and-breakfast" businesses.
The county placed a moratorium on new dispensaries in 2011 after the U.S. Attorney's Office threatened to sue county officials who adopted marijuana-related ordinances. After extending the moratorium by one year, the board implemented a permanent ban on new dispensaries in 2013 in order to give itself more time to draft regulations on the facilities.
Two medical marijuana dispensaries in the unincorporated area - Wonderland Nursery in Garberville and the Humboldt County Collective in Myrtletown - are currently in operation.
Ken Hamik's Hummingbird Healing Center dispensary followed a similar path to the county's ordinance's. The dispensary was evicted from its McKinleyville location in 2012 after the federal government allegedly sent a warning letter to their landlord. Since then, he and his staff have acquired a new location, but have yet to be able to open it until the ban is lifted.
"We're just looking forward to doing this as soon as possible," Hamik said to the board.
The board simultaneously adopted an ordinance on Tuesday updating the county's dispensary regulations that were approved in August 2015. The ordinance added language to the regulations, which were first drafted in 2011, to include references to the new state and local laws on the industry as well as changing the word "marijuana" to "cannabis and "grow" to "farm."
COASTAL DEPENDENT USES
After a nearly two-hour discussion that included nearly 25 public speakers, the Board of Supervisors advanced an ordinance that would allow new businesses to use lands normally reserved for coastal-dependent industries.
The proposal would modify the county's Local Coastal Plan by allowing new types of businesses to use this coastal-independent industrial land for up to seven years. The change would apply to 1,200 acres of land near Fields Landing, King Salmon, Fairhaven, Manila and Samoa.
Temporary businesses would be required to take several actions such as obtaining a conditional use permit, creating a site restoration plan, and be able to relocate or be removed in a timely manner in order to use the land.
The many public speakers had different views of what the board should do to improve the economic well-being of the county and bay. For former Arcata Director of Community Development Director and Humboldt Bay Development Association Larry Oetker, the current restrictions on these coastal lands has led to infrastructure wasting away rather than be put to use.
"It's basically use it or lose it," he said.
Several speakers called on the board to extend the maximum amount of time a temporary business could use the land from seven years to 10 years or no limit at all. While some argued that allowing these new temporary businesses would improve employment opportunities, others stated that it would do the opposite by reducing the stock of land that coastal businesses could utilize should an east-west railroad corridor between Humboldt Bay and the Central Valley be constructed.
"Because of the long-term consequences to future generations, it requires that a full environmental and economic impact review be done before any changes can be made," McKinleyville resident Susan Rotwein said.
Fourth District Supervisor Virginia Bass, who represents the district where these coastal lands are located, said that the proposal does not block coastal dependent businesses from using the land.
"We need to add vibrancy to the peninsula and this is how we do it," she said.
The Eureka Chamber of Commerce, Congressman Jared Huffman (D-San Rafael), 2nd District Assemblyman Jim Wood (D-Healdsburg), and Green Diamond Resource Company also backed the county's proposal.
The board voted 4-1 to advance the proposal as originally recommended by staff, which still must be approved by the California Coastal Commission before it can be implemented. Bohn said he does not think the proposal will make it through the coastal commission and voted against it himself over concerns that the temporary business operations would inhibit the use of docks if they are not set back far enough.
FINANCE DEPARTMENT AND PARK FEES
The board voted unanimously to approve ballot initiative language for the proposed merger of the Treasurer-Tax Collector's Office and the Auditor-Controller's Office into a single Finance Department. The proposal, meant to address staffing and department efficiency, is set to go before voters in November. Voters will also decide whether the director of the department will be an elected or appointed official.
The board also voted 5-0 to increase existing day-use fees at Big Lagoon and A.W. Way county parks up from $3 to $5 and increasing camping fees at the county's five campgrounds from $20 to $25. The increase was made to temporarily cover increased insurance costs that had the board temporarily considering possibly closing some parks earlier this year.
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: County Advances Cannabis Cultivation Tax - Dispensary Ban Lifted
Author: Will Houston
Contact: Times Standard
Photo Credit: Star-Advrtiser
Website: Times Standard
