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County reports $1.4 million owed in Measure S taxes by Trellis and cannabis-control grant recipients
Summary
Planning and Building staff told the Board of Supervisors that recipients of Development Cannabis Control (DCC) and Project Trellis grants collectively owe about $1.4 million in Measure S taxes; the board received and filed the report and asked staff to return with policy options.
County Planning and Building Director John Ford reported to the Humboldt County Board of Supervisors on June 24 that recipients of cannabis-related and infrastructure grants owe the county about $1.4 million in Measure S taxes.
Ford told the board that 275 DCC grants had been issued and 44 of those recipients still owe Measure S taxes. He also said 58 Trellis awardees owe Measure S taxes: 36 of those are water grants and 24 are energy grants. The total amount owed across the various groups, including applications that are closed, revoked or in suspense, was roughly $1.4 million, Ford said.
Ford described the numbers as a mix of awardees on payment plans and a smaller number of recipients not on payment plans. He said $136,577 was owed by active awardees not on a payment plan and that about $322,000 was tied to closed, revoked or suspended applications.
Board members discussed the program history and trade-offs. Supervisor Madrone said some applicants paid Measure S taxes and fees to avoid license suspension and therefore fell behind in Trellis/energy- and water-improvement funding queues; he asked staff to return with options to level the queue and address fairness for applicants who fulfilled tax obligations. CAO Hayes and staff confirmed they plan to return with recommended changes to the Local Equity Plan (LEP) and related program documents.
The board voted 5-0 to receive and file the staff report.
Ford and staff said they are continuing to monitor the status of revoked or suspended permits, to verify whether grant-funded improvements have been installed, and to pursue recovery of grant funds if recipients cannot meet requirements.
