Measure P: Stanislaus County Cannabis Tax Structure

Measure P introduces a new tax structure for cannabis businesses operating within Stanislaus County. This measure aims to regulate taxation in a fair and structured manner, impacting various sectors of the cannabis industry, including cultivation, distribution, manufacturing, testing, and retail.

 Initial Tax Rates

• Cultivation: 2.5% of gross receipts or $1.00 per square foot.
• Retail Sales: 1% minimum tax.
• Distribution, Manufacturing, Testing: 1% minimum tax.

• Adjustment Mechanism: Tax rates may be adjusted by a Resolution or Ordinance through a vote of the Board of Supervisors (BOS).
• Increase Cap: Rates cannot increase more than 0.5% per year or $1.00 per square foot for cultivation.
• Minimum Tax Rate: A floor is set at 1% for all sectors or $1.00 per square foot for cultivation.

• Retail Sales: Up to 8% of gross receipts.
• Cultivation, Distribution, Manufacturing: Up to 4% of gross receipts or $8.00 per square foot for cultivation.

 Payment Schedule

• Frequency: Taxes are to be paid quarterly, in arrears.
• Due Date: Payments must be made on or before the last day of the month following the close of each quarter.
• Tax Statements: A tax statement must accompany each payment.
• Business Cessation: All outstanding taxes are due immediately upon cessation of business operations.

• Payments should be made in accordance with the guidelines provided by the Treasurer/Tax Collector's office.

The Treasurer-Tax Collector holds the authority to inspect and audit the financial records of cannabis businesses.

• Records Subject to Inspection:
  • METRC (Marijuana Enforcement Tracking Reporting Compliance) data
  • Point of Sale (POS) systems
  • State and Federal Tax Returns
  • Excise Tax Returns
  • Any records pertaining to gross receipts

• Duration: Businesses must retain all relevant records for a minimum of three (3) years.

Cannabis businesses experiencing disasters or crop failures may apply for tax relief.

Application Process

• Timeframe: Relief requests must be submitted within five (5) days of the occurrence.
• Required Information:
  • Detailed explanation of the circumstances.
  • Substantial evidence to support the claim.

Relief Details

• Discretion: Relief is granted at the discretion of the Treasurer-Tax Collector.
• Maximum Relief Amount: Up to $25,000.00