Sonoma County Approves Tax Reductions for Marijuana Growers and Manufacturers

Sonoma County officials have thrown a lifeline to struggling cannabis growers and manufacturers. Amid declining revenue, supervisors approved the following tax reductions on Tuesday:

  • A six-cent reduction in tax rates per square foot for outdoor cultivation
  • A forty-nine-cent reduction for mixed light grows
  • Reducing taxes on indoor cultivation from $12.50 to $7.58 per square foot 
  • Reducing the taxes on manufacturing from 3% to 1.5% per square foot

On the other hand, supervisors also approved an increase in the tax on retailers from 2% to 3%. 

Sonoma County’s cannabis tax revenue is projected to decrease from $1.6 million to $1.4 million by the next fiscal year. A drop in cannabis prices and burdensome regulations are causing many cultivators to leave, McCall Miller, the cannabis program coordinator for Sonoma County, told the Press Democrat

This is not the first time the county has tried to help the struggling market. The Board of Supervisors reduced tax rates twice before.