a) There is established and imposed a cannabis business tax at the rates set forth in this Chapter.
b) Tax on commercial cannabis cultivation.
1) Every person who is engaged in commercial cannabis cultivation in the unincorporated area of the County shall pay an annual cannabis business tax. The minimum tax rate for commercial cannabis cultivation shall be one percent of gross receipts per fiscal year and the maximum rate shall be 15 percent of gross receipts per fiscal year.
2) Effective July 1, 2018 through June 30, 2020, the initial tax rate on commercial cannabis cultivation shall be set at 4 percent of gross receipts per fiscal year. Unless the Board of Supervisors takes action otherwise, beginning on July 1, 2020, such tax rate shall automatically increase to five percent of gross receipts per fiscal year and shall continue at that rate until and unless the Board of Supervisors, in its discretion and subject to Subsection (E) below, implements a higher or lower tax rate.
c) Tax on all other cannabis businesses.
1) Every person who is engaged in a cannabis business other than cultivation, including but not limited to nurseries, processing, transporting, distributing, distribution facility, manufacturing, compounding, converting, preparing, storing, packaging, delivering, selling or a testing laboratory in the unincorporated area of the County shall pay an annual cannabis business tax. The minimum tax rate shall be one percent of gross receipts per fiscal year and the maximum rate shall be 15 percent of gross receipts per fiscal year. The initial tax rate shall be set at five percent of gross receipts per fiscal year.
d) Notwithstanding the initial tax rates established in Subsection (B) and Subsection (C) above and subject to Subsection (E) below, the Board of Supervisors may, in its discretion, at any time by ordinance, implement a lower or higher tax rate for all persons engaged in a cannabis business in the unincorporated area of the County or establish differing tax rates for different categories of cannabis businesses, including for medical or adult use, subject to the minimum and maximum rates established in Subsection (B) and Subsection (C) above.
e) Notwithstanding Subsection (B), Subsection (C) and Subsection (D) above, the Board of Supervisors shall not increase or decrease the effective tax rate for any category of cannabis business more frequently than once in a 12 month period and not by more than two percentage points, either up or down.
f) The Board of Supervisors may, in its discretion, at any time by ordinance, establish exemptions, incentives, or other reductions, and penalties or interest charges or assessments for failure to pay the tax in a timely manner, as otherwise allowed by California law.
(§ 1, Ord. 1496, operative July 1, 2018, if approved by voters)