A Salinas Valley cannabis grower is spearheading an effort to repeal a 2018 tax, saying it is burdensome to a struggling industry already hammered by excessive fees.
That tax supports operations of the Monterey County Regional Fire District, with its chief saying the revenue is crucial for its work.
The 2018 voter-approved Measure H adds a tax on cannabis facilities based on their square footage. Currently, those rates are $0.21 per square foot for cultivators, $0.12 for nurseries and $1.19 for dispensaries and manufacturers.
According to Michelle Hackett Williamson, president of Riverview Farms in Salinas, that amounted to nearly $64,000 for the previous fiscal year for her family’s business.
MCRFD Chief David Sargenti says the smallest operator pays around $2,700 in the tax annually.
Over the years, the County of Monterey slashed its cultivation tax from $15-per-square-foot to under $2-per-square foot, while the state eliminated its cultivation tax. But the fire district’s tax still stands.
Riverview Farms is leading an initiative to repeal the tax, with the hopes of gathering enough signatures to qualify for a measure on the November ballot.
The proponents filed a notice to begin circulating the petition on Feb. 26. The group has 180 days to gather 841 qualified signatures of voters residing within the fire district’s boundaries.
Williamson is quick to note that the goal of the petition is not to hurt the fire department, but rather to level the playing field for cannabis businesses.
For the current fiscal year, the district expects to collect $375,000 from the tax.
“The loss of these taxes would cause critical impacts to our ability to support and respond to the cannabis industry needs,” Sargenti says, adding that an election would cost the district $180,000-$260,000. “These are very significant losses of revenue for our fire district that is already struggling with engine company staffing below that of our neighboring agencies and industry standards.”