Katelyn Baker
Well-Known Member
Humboldt County's proposed excise tax for medical marijuana farms has created a rift between local growers.
Several farmers have come out against the tax model, calling it premature, hasty and partial to larger farms. Other cultivators say they are supportive of it and feel that the time is ripe to pay their fair share in society to bring in badly needed revenue for county schools, roads and mental health services among others.
But the recently created Humboldt County Cannabis Chamber of Commerce argues the tax measure as written "misses the mark" on those funding goals.
"A wise tax policy could ensure Humboldt's sustainability for the rest of the century," the chamber's Board of Directors wrote in an opposition statement this month. "The measure being put forward not only fails to provide economic sustainability, but will actively decrease our resources to achieve it. This will set a terrible example to the rest of California's counties as they consider their own tax policies."
The county's tax proposal would implement a $1 to up to $3 fixed-rate tax for every square foot of medical cannabis cultivation. Indoor grows are taxed at $3, mixed-light at $2 and outdoor at $1 per square foot.
As a general excise tax, the revenue would go directly to the county's General Fund, allowing the Board of Supervisors to spend it as the supervisors will. The Board of Supervisors has stated that it plans to use the tax revenue to fund a variety of services such as mental health, drug addiction, public safety, and environmental cleanup of illegal cannabis grows.
The Board of Supervisors is set to vote on Aug. 9 on whether to place the tax on the November ballot.
The Cannabis Chamber of Commerce and many other growers are calling on the county to change its model and tax growers based on the amount of product yielded from their farms as the state already does with other agricultural products. According to the chamber's Board of Directors, the county's current model does not take into account issues such as crop loss or low yield, which could result in growers having to pay a fixed tax while also having to make up for unforeseen revenue losses.
Isaiah O'Donnell, one of the founding members of the nonprofit Emerald Family Farms mutual benefit company representing around 10 medical cannabis farms, holds a different view. He states the tax measure is fair and has a simple structure that falls in line with what other counties are considering.
"We need that simplicity right now as we're emerging from the shadows and creating legitimacy to the industry," O'Donnell said. "I think the supervisors did a very good job knowing how much investment it takes to bring one of these farms into compliance."
But the Cannabis Chamber of Commerce states the county's tax proposal is not taking into account the burden placed on smaller farms that are already struggling to bring their operations into compliance with local and state laws over the next six months.
"The timing of this measure impacts small farmers much more deeply than large, factory style farms," the chamber Board of Directors states.
"In the next 18 months, small and large farmers are burdened with the same fees, farm upgrades, and new operating expenses," the chamber states. "Small cannabis farmers are currently less able to absorb these costs without the agricultural infrastructure afforded other small farms in Humboldt."
Humboldt State University has taken note of the regulatory hurdles medical cannabis farmers are having to overcome in order to avoid being labeled a criminal. To help medical cannabis business startups navigate the new rules and requirements, Humboldt State University students have created an online business toolkit with information on the steps that need to be taken and the resources currently available to aid them.
"For better or for worse, local business owners will have to professionalize in order to compete with much larger commercial enterprises eager to exploit the California market," a joint letter from HSU Associate Business Professor Josh Zender and HSU Grant Analyst Sam Barton states. "Although the Humboldt brand will remain strong, collective action will need to be cultivated to achieve sustainability."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Growing Divide - Humboldt County Pot Farmers Dispute Tax Proposal
Author: Will Houston
Contact: Times Standard
Photo Credit: Justin Sullivan
Website: Times Standard
Several farmers have come out against the tax model, calling it premature, hasty and partial to larger farms. Other cultivators say they are supportive of it and feel that the time is ripe to pay their fair share in society to bring in badly needed revenue for county schools, roads and mental health services among others.
But the recently created Humboldt County Cannabis Chamber of Commerce argues the tax measure as written "misses the mark" on those funding goals.
"A wise tax policy could ensure Humboldt's sustainability for the rest of the century," the chamber's Board of Directors wrote in an opposition statement this month. "The measure being put forward not only fails to provide economic sustainability, but will actively decrease our resources to achieve it. This will set a terrible example to the rest of California's counties as they consider their own tax policies."
The county's tax proposal would implement a $1 to up to $3 fixed-rate tax for every square foot of medical cannabis cultivation. Indoor grows are taxed at $3, mixed-light at $2 and outdoor at $1 per square foot.
As a general excise tax, the revenue would go directly to the county's General Fund, allowing the Board of Supervisors to spend it as the supervisors will. The Board of Supervisors has stated that it plans to use the tax revenue to fund a variety of services such as mental health, drug addiction, public safety, and environmental cleanup of illegal cannabis grows.
The Board of Supervisors is set to vote on Aug. 9 on whether to place the tax on the November ballot.
The Cannabis Chamber of Commerce and many other growers are calling on the county to change its model and tax growers based on the amount of product yielded from their farms as the state already does with other agricultural products. According to the chamber's Board of Directors, the county's current model does not take into account issues such as crop loss or low yield, which could result in growers having to pay a fixed tax while also having to make up for unforeseen revenue losses.
Isaiah O'Donnell, one of the founding members of the nonprofit Emerald Family Farms mutual benefit company representing around 10 medical cannabis farms, holds a different view. He states the tax measure is fair and has a simple structure that falls in line with what other counties are considering.
"We need that simplicity right now as we're emerging from the shadows and creating legitimacy to the industry," O'Donnell said. "I think the supervisors did a very good job knowing how much investment it takes to bring one of these farms into compliance."
But the Cannabis Chamber of Commerce states the county's tax proposal is not taking into account the burden placed on smaller farms that are already struggling to bring their operations into compliance with local and state laws over the next six months.
"The timing of this measure impacts small farmers much more deeply than large, factory style farms," the chamber Board of Directors states.
"In the next 18 months, small and large farmers are burdened with the same fees, farm upgrades, and new operating expenses," the chamber states. "Small cannabis farmers are currently less able to absorb these costs without the agricultural infrastructure afforded other small farms in Humboldt."
Humboldt State University has taken note of the regulatory hurdles medical cannabis farmers are having to overcome in order to avoid being labeled a criminal. To help medical cannabis business startups navigate the new rules and requirements, Humboldt State University students have created an online business toolkit with information on the steps that need to be taken and the resources currently available to aid them.
"For better or for worse, local business owners will have to professionalize in order to compete with much larger commercial enterprises eager to exploit the California market," a joint letter from HSU Associate Business Professor Josh Zender and HSU Grant Analyst Sam Barton states. "Although the Humboldt brand will remain strong, collective action will need to be cultivated to achieve sustainability."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Growing Divide - Humboldt County Pot Farmers Dispute Tax Proposal
Author: Will Houston
Contact: Times Standard
Photo Credit: Justin Sullivan
Website: Times Standard
