UKIAH, CA., 5/8/26 — Tuesday, the Mendocino County Board of Supervisors passed two motions that will change how cannabis cultivators in the county pay taxes on their product and get licenses. The board also passed a motion to forgive delinquent taxes for some.
Two cannabis taxes are affected by the changes. The board canceled the minimum cannabis cultivation tax, also known as True-Up, which is calculated based on license size, At the same time, it also canceled reductions on the cannabis business tax, which now go back to 2.5% of gross sales receipts.
Cultivators will no longer pay by the square footage of plants their permits allow, but they will be paying a higher percentage for gross sales tax. The True-Up tax will be canceled starting this year, while the 2.5 % business tax starts in 2027. Cultivators have been paying a reduced rate for that tax since 2023.
Part of the new regulations is that cultivators must be current on their cannabis business taxes to renew their county license, starting Jan. 31, 2028.
County gives up on delinquent taxes
The board also wrote off several years of delinquent cannabis business taxes, deeming them uncollectable. Chamise Cubbison, county auditor-controller/treasurer-tax collector, said the county doesn’t have the necessary information on delinquent files.
Cubbison also said the permit program was not set up for possible collections, and each case would have to be looked at individually.
Delinquent cannabis business taxes for 2018-2019 will be written off as uncollectable. Delinquent taxes owed for 2020-2024 will also be written off, but only for those no longer in the cannabis program. Those still in the program must pay for those years if delinquent but are excused from interest and penalties.
District 5 Supervisor Ted Williams said this seemed unfair.
“It seems like it’s a little bit unfair to the people who are still in the program that they’re going to pay the tax and the people who walked away don’t owe,” Williams said. “it’s almost a penalty for continuing to work with us, continuing to be legitimate and pay taxes and meet all the requirements.”
District 2 Supervisor Maureen Mulheren pointed out that many of those who dropped out never cultivated and may no longer live in the county. She also noted that the county’s cannabis program wasn’t set up as it is now.
“The cannabis program, I would say existed, but not was up and running in the way that it is now,” Mulheren said. “The people that were in program 2020 through 2024, many of them did not make it through the program.”
Williams said he thought everyone should get the same deal, “out of general fairness.”
Delinquent deemed uncollectible Cannabis taxes from people not in the program will be forgiven. Seems like you guys got that a little backwards the people still in the program are ones that are needing the tax relief not the people that have left the program and the county from the tax years of 2020-2024 hit the hardest
It was a mistake to ever participate in this program. The folks who tried to do the right thing have gotten the short end of the stick at every turn and mostly find themselves in financial limbo/ruin.
Another rediculous act by the BOS . They continue to kiss up to the dopers and stoners. while walking all over the taxpaying farmers and ranchers of this county.
I agree with you along with anyone wanting to do business Mendocino or the hole state IMO
So property owners pay back 3 to 4 years of taxes county, they didn’t bill, because of bad department & no appraisals, to seniors, disabled and new home owners, while cannabis taxes are uncollectable , and written off?
This seems , I maybe wrong, but an illegal form of bias, and inequity toward citizens. BOS is obviously showing favoritism toward one specific business, that BOS promoted, in the beginning, that would help county, with tax monies. All I can say is, wow. Mr Williams emailed me, personally,
that this legalized Marijuana business had to expand and grow, because there was no other option. Yet they have no desire to collect back taxes for FOUR years, from some, but he wants to forgive the program ones? Or they admit, they don’t know, where who, whom even grew the stuff?? It seems really like they admit they are not into doing the work invloved, so just write it off? A home lien, is threatened, and they wrote letters, to home owners, that if they do not pay back escape taxes, that will happen. But pot lands cannot warrent a lien or letters? So messed up.
This whole thing has ruined our county. Hoop houses dot the once beautiful landscape. Outsiders came in that cares less about nature and their neighborhoods. What has they BOS invested any of these tax dollars to improve the community? Absolutely nothing. This whole thing killed the mom and pop community. Good job well done.
In 2021 there was an explosion of white hoop houses in this county. Everywhere. Anderson Valley. Potter and Redwood Valley Sanel Valley etc.
By the 2022 season a lot of those hoop
houses were abandoned with plastic ripped off and blowing in the wind. Left behind were the residues of pot growing. A real scar on the land.
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Cannabis businesses are the only ones that are taxed on gross receipts (allowing no deductions). They are not the only ones punished for complying with the tax & licensing systems with overbearing regulations, penalties and targeted to generate income for the unwieldy behemoth that is our inefficient County codes and regulations. Restoring common sense in decision making would go a long way in improving the County’s economy and therefore the tax base. We are taxing and regulating businesses to oblivion. They are the ones employing and paying taxes. Once those go, who pays the bills?
Empire loves inefficiency. Meanwhile let’s fight amongst ourselves. 🤦♀️