Humboldt County Applauds Cultivation Tax Reduction in Governor’s Revision of the Budget
Press release from the County of
Humboldt:
The County of Humboldt applauds the strong and sustained efforts of Governor Newsom, Senator Mike McGuire and Assemblymember Jim Wood to bring much-needed relief to small and independent cannabis farmers in Humboldt County for upholding their commitment to reform the state cannabis cultivation tax in the FY 22-23 May Revise state budget proposal. There are many important issues addressed in the May Revise, including shifting the point of taxation from distribution to retail, and strengthening enforcement efforts, and the county continues to urge the Governor and lawmakers to support small farmers to ensure competitiveness in the legal marketplace and continued investment in enforcement of illegal cannabis businesses.
Many of Humboldt County’s cultivators are homestead farmers and the current approach to cannabis policy and cannabis taxation risks severe socioeconomic impacts to these farmers and the community. Current tax policies disproportionately burden cannabis farmers
, create additional administrative costs and instability throughout the supply chain, and lack sufficient transparency for the state, businesses, and consumers. The approach outlined in the May Revise state budget is a recognition of this need and takes bold steps to address these issues.
“We want to thank our delegation and the Governor for recognizing how current policies are hurting our cultivators and working against the goals of legalized cannabis laws and regulations,” said Rex Bohn, First District Supervisor and Board Member for the Rural County Representatives for California. “We all want legal cannabis to thrive and to provide the revenue needed to help keep people safe and protect our environment. The proposal in the May Revise is a great step in that direction and we urge the legislature to make this a reality.”
Local cannabis farmers clearly communicated the need for cannabis tax reform, and in February, the Board acted to temporarily reduce the county’s 2022 Measure S cannabis taxes by 85 percent.
“Legalized cannabis requires that we have a healthy cannabis economy, with all sectors operating sustainably,” said Virginia Bass, Fourth District Supervisor and Board Member for the California State Association of Counties. “But right now, our producers are hurting in a big way, and that’s a threat to the entire industry. Humboldt County has more state cultivation licenses than anywhere else in California, and our local economy is feeling the strain. Providing tax relief to cultivators will help provide immediate stability and security to the industry, as well as the entire North Coast. I am looking forward to our partners and the legislature supporting this proposal.”
The proposed state cannabis tax reform policy changes would simplify the tax structure by setting the cultivation tax rate at zero beginning July 1, eliminate administrative burdens and costs, temporarily reduce the tax rate to support shifting consumers to the legal market, and stabilize the cannabis market with policies that are more transparent and can better adjust to market changes.
“Tax reform is more complex than any one policy but eliminating the cultivation tax is a critical piece of the puzzle,” said Ross Gordon, Policy Chair of the Origins Council and Policy Director at Humboldt County Growers Alliance. “We appreciate the leadership of Senator McGuire, Assemblymember Wood, and Governor Newsom in recognizing that the cultivation tax is simply unsustainable for farmers struggling due to collapsing wholesale prices. In the coming days we’ll be reviewing the Governor’s proposal in more detail and look forward to working towards tax reform that benefits consumers, equity businesses, and the cannabis industry as a whole.”
“Cannabis farmers serve a vital role in the cannabis industry, and all the revenues and services that are supported as a result. They are facing an extinction level event right now due to plummeting wholesale prices, over-taxation and overregulation. Families are struggling to make ends meet and businesses are closing, many of them for good,” said Michelle Bushnell, Second District Supervisor. “The proposal the Governor’s May Revise recognizes this dire situation and I want to thank Governor Newsom, Senator McGuire, and Assembleymember Wood for their work on helping the industry and all the services they support. I urge the legislature to include cannabis tax relief in their final budget so the industry can become healthy once again.”
Humboldt County First District Supervisor Rex Bohn and Second District Supervisor Michelle Bushnell Applaud Cultivation Tax Reduction in Governor’s May Revise
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So if your gonna play the game boy, you gotta learn to play it right
Gotta know when to crack em.
Know when to plant em
Know when to walk away
Know when to run
Never count your money
While your sitting at the trim table
They’ll be time enough for counting
When a deal is done
Every grower Knows
That the secret to surviving
Is knowing what to throw away
and what to keep
And every crops a winner,
and every crops a loser
And the best that you can hope for
is die in your sleep
And In his words I found an Ace I could keep.
Gotta know when crack em,
know when to plant em
Know when to walk away
Know when to run
After Thirty three years of playing
Now’s the time to run
and die in my sleep
Now what guarantees that the cultivation tax money will actually make it into the farmers pocket? What would stop the Distro and the buyer from absorbing that $160/# into their profits?
That’s the reality
//to bring much-needed relief to small and independent cannabis farmers in Humboldt County//
What a buncha lyin fucktards. The tax break helps the corporations and these assholes are making it seem like it’s only benifiting grows under 10k sqft.
If the tax cut benefits growers big and small alike, this will just encourage rapid growth of more profitable massive grows compounding oversupply problem driving prices even lower
Your missin the big picture my friend. Corporates cannot float security notes to pay Uncle Sam (the feds). They need legal tender (cash). The corporates are fuck’in it up not just for farmers under 10k but the whole. They control 95% of the pathways to the big money and they been fuck’in over our small growers. So we been hitting em hard in their backyards to make em burn that cash. The tax break benefits the corporates cause they get another year to fuck with my beloved cause they got a reprieve in the area that benefits them the most which is having that legal tender or tax break. All good cause we about to fuck their indoor world up!! It’s our plant bitches and this year I promise we gonna make them burn every penny!!!
Exactly. And exactly what giant squirrel says too. It’s a farce!
Unfotunately this is true. Right now the vast majority of the small Humboldt farms are selling bulk product. Most of this prodcut is sold and transfered from one distributor to another or to a manufacutrer. Currently the last distributor that touches the prodcut or the one who finally tests it and pacages it for market is responisble for collection or pament of the tax. So this will provide some great relief to any small farmers that are currently branding their own product but wont have a lot of effect on the bulk producers.
This movie ends with 20 or 30 huge farms that are not in Humboldt county producing all of the weed for California. Oh, and if you moved here during the greenrush to make $500K a year, you are most definitely NOT a homesteader, especially if you live in town.
True! And…If you have not ever lived with wood heat then you have never really lived in Humboldt.
Now Triangle cannabis farmers can stop referencing the cultivation tax and face the *real* reasons why they are struggling to compete.
JB
Yes. “Consultants” who learned to grow here took what they learned to huge corporate mega-grows elsewhere and killed us all. “But it was going to happen anyway so I just got mine” they say…
If your business model relies on sequestering knowledge rather than efficient production, you’ve lost before you’re even started.
JB
Well what I have seen is Corporate brands like Jeter and stilletz using slimey tactics. They make the dispensaries sign contracts forcing them to keep other products price competitive (illegal or unfair business practice?). Stilletz takes it a step further by buying shelf space or litteraly supply’in a cabinet of products earning the dispensary rental income (how much money did they acquire via equity dollars? Another possible violation). Stilletz is failing hard blow’in through cash cause no one buying their shit product for $8 a gram. Jeter was impressive not the product but the business model, I learnt a lot! They run about $6 a gram.
Now what would be cool is you gettin your handz on one of them agreements and just sharing with us. You are opening a dispensary so ya got good reason to at least review. Be aware their is an NDA but I am sure some loop-hole exists if you are creative.
Oh, there is zero question the corporate supply chain is slimy.
We’re fortunate, with our own distribution license and our own supply expansion, we can just send people down the highway if they want to play games like that. Our dispensary(s) will be for ‘farm direct’ product primarily.
JB
Yes gotta get direct to consumer. So is your group available (with binding legal agreement) to use for my legal farm(s). We need a smoother process taking product to lab in LA for cat 3 testing then dropping off at our non-delivery storefront partners in Ventura, LA, Long Beach, Orange County, Riverside Areas. It would really help a lot of Humboldt/Trinty (and I guess I could as well) Mendo growers under 10k sqft. We have all the pieces just need a better distributor. I believe your in a great location for a hop as we jump down south. Bonus is we won’t compete in your area and you get to see a wide selection of Humboldt brands if ya so choose to supply your own customers. Then maybe we can all start having fun again
Just give me your ditrib CCL I will pitch and contact you.
That could work out nice. We’re early in our dispensary process. Licensing in our County is basically a year-long process and then construction. Easily a year.
We’re currently negotiating on the property for a second (we have locations scouted for a third), but that’s even farther out.
JB
Hey everyone it’s election time, let’s go down and check all the same boxes because things are so great with our leadership here in Cali !!!!!! Let’s not try anything different or new.lol
I’m still curious how with the drought especially down south how they approved a 5.5 million square foot green house for cannabis? Thought they were rationing water. Now they’re getting a tax break! WOW..
Same reason they make sure a majority of old white men don’t have to scour the golf course look’in for a white ball in a tan landscape.
Sorry legallettuce that was just a stupid answer!
Its the correct answer. You just have issue with my details. If there’s water for golf courses there’s water for weed. Have you not driven down the 5 through Almond land with all them signs suggesting the state needs more dams. They even complain about the rivers running into the ocean and the state wasting fresh water. For an almond it’s sad.
Just saying all races golf. But I get your point!
Casey Houweling was in top form on that one. He financed the County proposition which legalized cultivation, knowing that if he got it passed he had locked in the sale of that facility and that the buyer (Glass House) could then lock in over half of the cultivation area that the proposition authorized.
JB
Crazy
Too little, too late
Beating a dead horse.
I heard Bob Baffert got his own brand, it’s infused.
Temporary and only only proposed
Just when I thought the number of growers would drop to reasonable levels, the govt. steps in yet again and insures the price will stay low.