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MEMORANDUM
TO: Honorable Board of Supervisors
FROM: Anita L. Grant, County Counsel
DATE: November 5, 2019
SUBJECT: Consideration of Resolution Amending Resolution No. 2019-70, Adopting a Policy for the Collection of Taxes Due Pursuant to the Lake County Cannabis Cultivation Tax Ordinance
EXECUTIVE SUMMARY:
On or about May 14, 2019, your Board adopted a Resolution adopting a policy for the collection of taxes due pursuant to the Lake County Cannabis Cultivation Tax Ordinance. In that resolution, your Board clarified what it means to begin to engage in cannabis cultivation operations for purposes of accrual of cultivation taxes. Said taxes begin to accrue when cannabis cultivation operations, whether indoor or outdoor, begins and all required state and local permits have been obtained.
As with any new industry and resulting taxation protocol, there are often additional points of clarification that should be made from time to time. Today, for your Board's review and consideration is a further such clarification presented on behalf of Supervisor Sabatier. Specifically, your Board is asked to consider a further amendment to the above-described resolution which would clarify the taxation process in the event a cannabis cultivation permittee determines to "opt out" of cultivation operations for a prescribed period of time.
The resolution amendment is intended to establish the following:
1. Complete Opt-Out. A cannabis cultivation permittee who has engaged in permitted cannabis cultivation in Lake County for a period of no less than two years, may determine to cease all cultivation operations at a particular permitted location for a specified period of time (a "complete opt-out"). Such a permittee may avoid the payment of cannabis cultivation taxes for the period of such an opt-out under the following circumstances:
a. The permittee must cease all cultivation operations under his/her permit at the subject location.
b. The permittee must pr...
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