Eight years after Proposition 64's passage, it's time to fully integrate cannabis into the fabric of Humboldt County's economy. This means suspending and repealing Measure S, the county's cannabis cultivation tax, and supporting our local cannabis farmers just like we support all other small businesses in Humboldt.
Humboldt's Measure S tax was introduced in 2016 and applies exclusively to legal cannabis farmers. It was initially levied as a flat rate based on the square footage of each farm, with no consideration for fluctuating market conditions or crop loss. Since its inception, local farmers have contributed over $55 million in Measure S taxes to the Humboldt County's General Fund. However, the economic landscape for legal cannabis in California has drastically shifted since 2021, with wholesale prices falling below the cost of production. Despite this collapse in prices, the tax continues to place undue strain on an already struggling industry.
To their credit, the Humboldt County Board of Supervisors has taken steps to address these challenges. In February 2022, they reduced 2021 Measure S tax bills by 85%. Later that year, in November, they suspended tax collection entirely for the 2022 and 2023 cultivation seasons. And most recently, in October 2023, they reinstated the tax at 10% of its original amount for the 2024 season.
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