Licensed cultivator urges Rio Dell to lower local cannabis cultivation tax as market collapses

RIO DELL, Calif. — At the Sept. 16 Rio Dell City Council meeting a licensed cannabis cultivator asked the council to consider lowering local cultivation taxes to help keep small operators in the regulated market.

"My name is Fred, and I'm a licensed cannabis cultivator here in the city of Rio Deaf," the speaker said. "The cannabis market is collapsing. Wholesale flower prices have dropped to historic lows, while licensed farmers like myself continue to face heavy compliance costs and competition from the unregulated market."

Fred told the council that Rio Dell operators also shoulder unique infrastructure costs, such as maintaining Dinsmore Ranch Road off Monument, and that cultivators lack access to equity grants or traditional support programs that might offset expenses. "For many of us, local cultivation taxes are now the breaking point," he said, and asked the council to place the issue on a future agenda and to work with local cultivators to find a fair tax structure.

Fred warned that without action, the city risks losing not only tax revenue but also the regulated operators who provide jobs and are held to environmental and community standards. He urged the council to consider measures other cities and counties have taken to suspend or lower cultivation taxes.

Council did not take immediate action at the meeting; staff recorded the request for future agenda consideration.

Why it matters: Local tax structures can influence whether small, regulated cultivators remain in compliance and continue providing regulated economic activity. The speaker framed the request as both an economic and regulatory concern.