Divides over local cannabis policy were on display at a recent Santa Cruz County Board of Supervisors meeting, as the lawmakers continued efforts to establish rules for on-site consumption lounges. At the same meeting, the board agreed to levy a vector control benefit assessment that was approved by local property owners and also heard an update on the state of tourism across the county and region.
When it came to the leafy green herb, what was before the board was a proposal to exempt non-cannabis goods sold at unincorporated cannabis companies from the county's cannabis business tax rate of 7%. This would mean that, like other retailers in unincorporated territory selling T-shirts, stickers or other merchandise, only the county's sales tax rate of 9.5% would apply.
The other order of business was an option to set the tax rate for cannabis lounge derived sales at 1% of gross receipts, as opposed to the 7% applied to retail cannabis products generally. While a first reading for both of these proposals was passed with dissenting votes cast by supervisors Monica Martinez and Kim De Serpa, the rate for cannabis lounge sales highlighted continued disagreements behind the dais.
Earlier this year, the board permitted eligible cannabis retailers and farms to establish opportunities for on-site consumption in designated lounge areas. The move was intended as a new initiative that could bolster public appeal for local cannabis business owners who said the industry has struggled to take off partially because of overregulation and taxation.
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