Why isn't cannabis treated equally to other agricultural crops?
There is a very real, unjust, unequal and targeted money grab at an industry that is struggling to exist.
Annual costs for a 10,000sf outdoor cannabis farm to maintain an active license:
Water Board Cannabis General Order Enrollment $690
State Cultivation License $4,820
County Permit Review $750
County Cultivation Tax $10,840
County Property Tax $4,288
County Business License Renewal $57
State Cultivation Tax (flower) $160/lb@300lbs=$48,000
State Cultivation Tax (trim) $45.62/lb@300lbs=13,776
Cannabis Water Right $750
CDFA Weigh master License $115
State Secretary LLC Annual Tax $800
Bond Renewal $140
TOTAL - $84,936 (TAXES/FEES ONLY)
This DOES NOT include cost of goods, employees wages, payroll taxes, workman’s comp, insurance, state or federal income taxes, soil, clones ($2,400), fertilizer, processing ($125/lb), testing ($550/batch), distribution ($50-$100/lb), transport ($95+/pickup), packaging, or banking fees ($300+/month).
A 10,000 square foot outdoor farm can grow on a good year ~300lbs of flower.
$283/lb in TAXES and FEES ALONE.
Current market rate for cannabis is $250-$500
ALL STATE AND COUNTY agencies need to re-evaluate their impact on this industry. Please consider restructuring of fees to be equal to other Agriculture Crops and businesses. Especially, when the federal government will hold out another heavy hand upon legalization (anticipated additional 12-20%)!?!
Humboldt County's entire economy is affected by this targeted over-taxation and market crash.
Suspend and restructure Measure S.
Sincerely struggling to survive,
Skyline Farms LLC owner and operator