(A) There is established and imposed a cannabis business activities tax at the rates set forth in this article.
(B) Each person engaged in any cannabis business activity in the unincorporated area of the county, regardless if the cannabis business has been issued a permit to operate lawfully in the county or is operating unlawfully, shall pay an annual cannabis business activities tax. Said tax shall be imposed upon any and all cannabis business activities, regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitous.
(C) Tax on cultivation type cannabis business activities.
(1) Every person who is engaged in cultivation type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a square footage basis, specifically, the "canopy" as that term is defined herein.
(2) The minimum and maximum rates of the cannabis business activities tax for cultivation type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Cultivation
|
Minimum
|
Maximum
|
Cannabis Business Activity Type: Cultivation
|
Minimum
|
Maximum
|
Nursery | $3 | $17 |
Outdoor (specialty cottage) | $3 | $17 |
Outdoor (specialty) | $3 | $17 |
Outdoor (small) | $3 | $17 |
Outdoor (medium) | $3 | $17 |
Outdoor (large) | $3 | $17 |
Indoor (specialty cottage) | $3 | $17 |
Indoor (specialty) | $3 | $17 |
Indoor (small) | $3 | $17 |
Indoor (medium) | $3 | $17 |
Indoor (large) | $3 | $17 |
Mixed-light (specialty cottage) | $3 | $17 |
Mixed-light (specialty) | $3 | $17 |
Mixed-light (small) | $3 | $17 |
Mixed-light (medium) | $3 | $17 |
Mixed-light (large) | $3 | $17 |
(3) Beginning on July 1, 2019, and on July 1 of each succeeding fiscal year thereafter, the cannabis business activities tax imposed by this article shall increase by the most recent change in the annual average of the Consumer Price Index ("CPI") for all urban consumers in the San Francisco-Oakland-San- Jose areas as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this article shall be made.
(4) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in divisions (C)(2) and (C)(3) above.
(D) Tax on distribution type cannabis business activities.
(1) Every person who is engaged in distribution type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a gross receipts per fiscal year basis.
(2) The minimum and maximum rates of the cannabis business activities tax for distribution type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Distribution
|
Minimum
|
Maximum
|
Distributor | 2% | 4% |
Distributor (transportation only) | 0.5% | 4% |
(3) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in division (D)(2) above.
(E) Tax on manufacturing type cannabis business activities.
(1) Every person who is engaged in manufacturing type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a gross receipts per fiscal year basis.
(2) The minimum and maximum rates of the cannabis business activities tax for manufacturing type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Manufacturing
|
Minimum
|
Maximum
|
Manufacturing (Level 1) | 2.5% | 4% |
Manufacturing (Level 2) | 2.5% | 4% |
(3) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in division (E)(2) above.
(F) Tax on microbusiness type cannabis business activities.
(1) Every person who is engaged in microbusiness type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a gross receipts per fiscal year basis.
(2) The minimum and maximum rates of the cannabis business activities tax for microbusiness type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Microbusiness
|
Minimum
|
Maximum
|
Microbusiness (retailer) | 4% | 5% |
Microbusiness (non- retailer) | 2.5% | 3.5% |
(3) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in division (F)(2) above.
(G) Tax on retailer type cannabis business activities.
(1) Every person who is engaged in retailer type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a gross receipts per fiscal year basis.
(2) The minimum and maximum rates of the cannabis business activities tax for retailer type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Retailer
|
Minimum
|
Maximum
|
Retailer (delivery only) | 0.5% | 3% |
Retailer | 4% | 8% |
(3) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in division (G)(2) above.
(H) Tax on testing laboratory type cannabis business activities.
(1) Every person who is engaged in testing laboratory type cannabis business activities in the unincorporated area of the county shall pay an annual cannabis business activities tax, which shall be determined on a gross receipts per fiscal year basis.
(2) The minimum and maximum rates of the cannabis business activities tax for testing laboratory type cannabis business activities shall be as follows:
Cannabis Business Activity Type: Testing Laboratory
|
Minimum
|
Maximum
|
Testing laboratory | 0.5% | 4% |
(3) The Board of Supervisors may, in its discretion, at any time by resolution or ordinance, set the initial rate and/or adjust the tax rate for all persons engaged in any cannabis business activity in the unincorporated area of the county, or establish differing tax rates for different categories of cannabis businesses, including medicinal or non-medicinal cannabis businesses, subject to the minimum and maximum rates established in division (H)(2) above.
(I) Notwithstanding the foregoing, the Board of Supervisors may, in its discretion, at any time by ordinance, exempt or except certain categories of cannabis business activities from the cannabis business activities tax.
(Measure C Initiative, adopted 2018)