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US (CA): Sonoma County slashes tax on cannabis businesses

The Sonoma County Board of Supervisors on Tuesday approved a significant cut to the county's cannabis cultivation tax, sending the county further down a path toward eliminating the tax altogether.

The move, in a 3-2 vote, comes even though the tax revenue used to run the county's cannabis program has fallen short of covering operational costs.

Board Chair Lynda Hopkins, Vice Chair Rebecca Hermosillo and Supervisor James Gore voted to continue assessing cultivators based on their square footage and what type of growing operation they have. The new rates, however, will amount to roughly 2.5% of a grower's gross receipts, or a 45% reduction, according to McCall Miller, the county's cannabis program coordinator.

Supervisor Chris Coursey voted against the proposal, preferring instead a 25% reduction proposed by staff. Supervisor David Rabbitt, also voted no and said he would rather keep the rates the same. The new rates will take effect July 1 pending a second, final vote by the board in May.

Read more at The Press Democrat