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Board approves limited on-site cannabis consumption at existing retailers, sets 1% tax on lounge sales
Summary
After a lengthy public discussion that included health experts and retailers, the Board of Supervisors voted 3–2 to allow on-site cannabis consumption at existing licensed retail locations (option 1) and to treat ancillary non-cannabis goods separately, setting a 1% county business tax rate on cannabis sold for on-site consumption.
The Santa Cruz County Board of Supervisors narrowly approved a framework to allow on-site cannabis consumption at existing licensed retail locations and set a reduced county cannabis business tax rate for lounge sales. The board voted 3–2 to pursue the conservative "option 1" model — permitting consumption lounges only at existing dispensary sites or immediately adjacent commercial spaces — and to define ancillary non-cannabis items separately so they can be exempt from the cannabis business tax. The board also set a 1% county tax rate for cannabis sales that occur at lounges.
The item followed months of outreach and four public listening sessions. Cannabis Licensing Manager Samuel Laforte and…
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