Humboldt County revokes eight cannabis permits for unpaid Measure S taxes; one permit continued

The Humboldt County Board of Supervisors voted 4–0 on June 17 to adopt resolutions revoking eight suspended cannabis permits for failure to pay Measure S taxes and to continue a ninth permit (PLN10424) to a date uncertain to allow the permit holder additional time to pursue a transfer or payment arrangement.

Michael Kine, planner with the Humboldt County Planning and Building Department, told the board the eight permits before the supervisors had been suspended since May 2024 for nonpayment. Kine said a March 31, 2024 payment deadline had been set previously and that staff’s records showed a total outstanding Measure S balance of $222,155.02 across the nine permits on the revocation list. He told the board that only one of the suspended sites still held an unexpired state license and that some recent transfers elsewhere had involved paying past Measure S debts in full or entering payment plans.

Several permit holders and members of the public spoke during the hearing. Frank Johnson, who identified himself as someone familiar with one listed permit in Redwood Valley, asked the board to listen to constituents who previously told supervisors Measure S was “not working for the community” and said small, family operations are being harmed by the tax. Sunshine Sarasota, who said her father owns a parcel under consideration in Redcrest, asked the board to waive the back taxes so she could stabilize a family operation; she said the liabilities would be “very burdensome starting out right now.” Ken Sawatzki urged consistency, saying he supported letting the process play out and not waiving taxes for individual applicants because that would be unfair to others.

Board members discussed options. Staff said they had attempted outreach and offered payment plans but had been unsuccessful in many cases. John Ford and Michael Kine explained policy constraints: under current county policy new permit holders who take over a permit are expected to pay the Measure S taxes owed or pay by the end of the year, and waiving owed Measure S taxes would be “unprecedented” under current policy. Supervisors also raised concerns about the practical barriers to transfers: many properties carry abatement liens or other encumbrances that prospective buyers must resolve before closing, and suspended permits do not allow active cultivation.

Supervisor Virginia Bone and others noted there is market interest in certain parcels and urged staff to work with realtors and potential buyers to clear abatement liens and get properties back on the tax rolls. Several supervisors also said the county previously allowed payment plans and had reduced rates in past years; that context informed the board’s discussion about whether to reopen payment-plan options in a systematic way rather than granting ad hoc waivers.

After deliberations the board adopted resolutions revoking eight permits per Humboldt County Code section 312-14 and directed staff to provide certified board orders to planning and building staff for notification of affected parties. The board also continued permit PLN10424 (identified in staff materials as owing $35,872.50 in Measure S taxes) to a date uncertain to allow the interested party more time to pursue payment or transfer options; staff was directed to return with suggestions for modifications to payment-plan processes and other ideas to assist license transfers.

The board and staff noted limits on the board’s authority to waive Measure S taxes and said any broader reopening of payment-plan eligibility or other policy changes would require a separate agendized item and public discussion. The supervisors asked staff to return as quickly as feasible with recommended policy options to facilitate transfers and site cleanup while preserving consistency with county law.