Sonoma County California: Cannabis Industry Will Tank Without Tax Breaks
A report from BDSA showed legal sales fell by 11% year over year
Two Sonoma County cannabis industry groups say that without tax reform at the state and county levels, their faltering industry could collapse.
The Cannabis Business Association of Sonoma County (CBASC) and the Sonoma Valley Cannabis Enthusiasts (SVCE) called on the Sonoma County Board of Supervisors to implement resolutions that would result in immediate tax relief reform at both the county and state levels.
The resolutions would eliminate state cultivation tax and suspend Sonoma County collection of cultivation taxes for a predetermined period of time. Sonoma County is one of five counties being asked to participate in a multi-county effort to seek state suspension of cultivation taxes.
Unlike other agricultural products, cannabis cultivation is taxed before production. California’s current cannabis cultivation tax is $9.65 per dry-weight ounce for cannabis flower; $2.87 per dry-weight ounce for leaves; and $1.35 per dry-weight ounce for cannabis plants. A sales report from industry analyst BDSA showed that legal sales in California fell by more than 11% year over year with a nearly 8% drop since August of this year alone.
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