The Board of Supervisors considered amendments to the county cannabis business tax (CBT) ordinance on Nov. 18. Staff described two main changes: (1) exempting ancillary non‑cannabis goods (for example, retail merchandise or tickets for events hosted on site) from the CBT and (2) applying a new 1% gross receipts CBT rate to on‑site consumption sales, distinct from the existing 7% retail CBT for take‑home purchases.

Cannabis business owners and operators said the change would create parity between typical hospitality sales and cannabis retail and would help new 'consumption lounge' business models survive high tax burdens. "Everything that we are selling that has cannabis goes through the track and trace system and our point of sale anyway," said Bryce Barriessa of Treehouse Dispensary to explain how cannabis items could be distinguished from ancillary goods.

Several supervisors voiced concerns about lowering the rate for on‑site consumption. Supervisor Martinez said the county may be facing a period of severe fiscal constraints and questioned why the board should reduce a potential revenue stream; she said the county could lawfully set the rate as high as 10% and cited an earlier staff estimate showing material revenue sensitivity to percentage changes. Supervisor Cummings and others argued high overall tax burdens on legal cannabis have driven customers to the illicit market and that a lower on‑site rate could level the playing field for compliant businesses.

After deliberation Supervisor Cummings moved the staff recommendation to adopt the draft ordinance establishing the ancillary exemption and the 1% on‑site consumption rate. Supervisor Koenig seconded. On roll call the motion passed 3–2: DeSerpa and Martinez voted no; Koenig, Cummings and Hernandez voted yes. The ordinance language will be finalized and staff said they will track consumption‑lounge revenues separately when facilities come online.