Humboldt County has officially repealed its cannabis tax, known as Measure S, in a unanimous 4-0 vote by the Board of Supervisors. The decision comes after months of mounting pressure from local growers who argued that the cannabis tax was crippling an already struggling industry. For many cultivators in the region, this move represents a lifeline in a market that has seen steep declines in prices and profits.
Measure S was originally approved by voters in 2016, establishing a cannabis tax based on the square footage of cultivation sites. The goal was to generate revenue for county services while regulating the expanding cannabis industry. However, in recent years, as the statewide cannabis market has crashed, many Humboldt farmers found themselves unable to pay the cannabis tax, leaving millions in delinquent fees. According to county reports, more than $11 million in unpaid cannabis tax debt had accumulated, while enforcement costs exceeded the revenue the tax brought in.
During the public meeting, dozens of local growers shared emotional testimonies. They explained how continued enforcement of the cannabis tax could push them out of business entirely. Farmer Hannah White described the repeal as a "huge weight lifted" from her shoulders, expressing deep gratitude toward the Board of Supervisors. Many echoed her sentiment, noting that removing the cannabis tax gives them a fighting chance to stay afloat and keep their farms running.
Supervisors agreed that the cannabis tax no longer served its intended purpose. They acknowledged that the current state of the market made the tax unsustainable and counterproductive. Enforcement costs were high, compliance rates were low, and the local cannabis tax was doing more harm than good to the county's once-thriving cannabis economy.
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