Mendocino County May Send Letter in Support of Cannabis Tax Cuts


The Mendocino County Board of Supervisors will vote today on whether to send a letter of support for AB 1948, which suspends the state’s cultivation tax and to reduces the state excise tax from 15% to 11% until July 1, 2023.

The county indicated in its letter that the tax relief would help the cannabis industry’s transition into a legal market. The county believes that the high-cost structure due to compliance, taxes and other costs provides the black market with a competitive advantage and that a temporary cut in taxes would help level out the playing field.

The county also stated that California should reduce the taxes as no one could have envisioned the steep decline in wholesale cannabis prices at the time that Proposition 64 was implemented.

The Mendocino Cannabis Alliance supported the county’s action and recommended approval by the board. The Alliance also complimented the county’s proactive stance and leadership by the sponsor, Supervisor McCowen.

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