Reduced tax rates may be in store for struggling cannabis cultivators and manufacturers in unincorporated Sonoma County, driven in part by decreasing prices affecting the industry.
County officials will recommend the Board of Supervisors approve new tax rates based on a model that would reduce the tax burden for most cannabis growers.
Under the proposal, cultivation tax rates would be reduced from $0.75 per square foot to $0.69 per square foot for outdoor cultivation, $3 per square foot to $2.51 per square foot for mixed-light cultivation, and $12.50 per square foot to $7.58 for indoor cultivation.
The tax rate for manufacturers would also drop from 1.8% to 1.5%, while retailers would see an increase from 2% to 3%. The proposed changes come as the county sees a decline in the number of cultivators, dwindling prices driven in part by a glut of product and competition from large-scale growers, and a projected long-term decrease in industry-driven revenue for its cannabis program.
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