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Committee backs 7‑point plan for delinquent cannabis taxes — write‑offs, amnesty and compliance deadline
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Summary
The General Government Committee unanimously recommended a seven‑point package from the Auditor‑Controller‑Treasurer‑Tax Collector to the Board of Supervisors to address delinquent cannabis business taxes, including writing off early years, offering limited amnesty, and requiring tax compliance for license renewal by Jan. 31, 2028.
The Mendocino County General Government Committee voted to forward a seven‑point plan to the Board of Supervisors aimed at addressing delinquent cannabis business taxes, including targeted write‑offs, interest/penalty amnesty, and compliance timelines tied to license renewals.
Scope of the plan: The department's recommendations include writing off 2018–2019 delinquent amounts as uncollectible; writing off 2020–2024 debts for cultivators no longer active in the program; offering amnesty for interest and penalties for 2020–2024 for cultivators who pay outstanding annual balances in full (with no installment plans, per the draft recommendation); and establishing a compliance requirement such that all cannabis business tax payments and quarterly filings must be current by Jan. 31, 2028, for 2028 license renewal.
Legal and administrative concerns: Deputy County Counsel Matthew Kudrowski said prior Board direction required return of amendments making tax payment a condition of a cannabis business license. County counsel (Elliott) cautioned that formal legal opinions are confidential to the Board and that the office will prepare a second opinion on tying license renewals/suspensions to tax compliance and provide it to the full board. Counsel noted tax‑collection and due‑process legal nuances and limited precedent.
Industry response: Speakers from the cannabis industry and small cultivators supported the plan's recognition of enforcement need but urged caution on how aggressive write‑offs and amnesty would affect growers who paid all along. Steven Amato (Mendocino Cannabis Alliance) said the plan is logical but emphasized the need to confirm whether tying license status to tax collection is legally permissible. Several cultivators urged the county to consider deeper discounts or temporary reduced rates to avoid pushing marginal businesses out of the regulated market.
Outcomes and next steps: The committee approved forwarding the TTC's seven‑point package to the Board of Supervisors and targeted May 5 as the earliest date for the item to return to the Board for consideration; staff and county counsel will prepare the legal and implementation work products needed for the Board packet.
