Contra Costa County Municipal Code Art. 64-16.4 Cannabis Business Tax

A cannabis business tax is established and imposed at the rates set forth in this chapter. The cannabis business tax is levied on all persons engaged in a commercial cannabis activity.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rates on commercial cannabis cultivation are as follows:

(1) Seven dollars per square foot of canopy space in a structure where indoor cultivation occurs.

(2) Four dollars per square foot of canopy space in a structure where mixed-light cultivation occurs.

(3) Two dollars per square foot of canopy space where outdoor cultivation occurs.

(4) One dollar per square foot of canopy space in a facility that operates exclusively as a nursery.

(b) For purposes of determining the tax imposed under this section, the square footage of canopy space is the maximum square footage of canopy space allowed by the county zoning permit authorizing the commercial cannabis cultivation activity. If a person engaged in commercial cannabis cultivation does not have a zoning permit issued by the county, then the square footage of canopy space is the greater of:

(1) The maximum square footage of canopy space for commercial cannabis cultivation allowed by the state license type for the activity involved; or

(2) The square footage of canopy space determined by the treasurer-tax collector.

(c) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on commercial cannabis cultivation to a rate equal to or above the minimum rate and up to the maximum rate, as adjusted by the Consumer Price Index pursuant to subsection (d). For commercial cannabis cultivation, the minimum rates and maximum rates are as follows:

(1) A minimum of seven dollars per square foot of canopy space and a maximum of ten dollars per square foot of canopy space in a structure where indoor cultivation occurs.

(2) A minimum of four dollars per square foot of canopy space and a maximum of seven dollars per square foot of canopy space in a structure where mixed-light cultivation occurs.

(3) A minimum of two dollars per square foot of canopy space and a maximum of four dollars per square foot of canopy space where outdoor cultivation occurs.

(4) A minimum of one dollar per square foot of canopy space and a maximum of two dollars per square foot of canopy space in a facility that operates exclusively as a nursery.

(d) On July 1, 2021, and on each July 1 thereafter, the maximum annual tax rate per square foot of each type of canopy space shall automatically increase by a percentage equal to the percentage increase of the Consumer Price Index measured between January 1 of the calendar year immediately preceding the increase and January 1 of the calendar year of the increase. No Consumer Price Index adjustment resulting in a decrease of any tax shall be made.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rate on cannabis distribution is two percent of gross receipts.

(b) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on cannabis distribution to a rate equal to or above the minimum rate and up to the maximum rate. For cannabis distribution, the minimum tax rate is two percent of gross receipts and the maximum tax rate is three percent of gross receipts.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rate on cannabis manufacturing is two and one-half percent of gross receipts.

(b) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on cannabis manufacturing to a rate equal to or above the minimum rate and up to the maximum rate. For cannabis manufacturing, the minimum tax rate is two and one-half percent of gross receipts and the maximum tax rate is four percent of gross receipts.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rate on cannabis retailers is four percent of gross receipts.

(b) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on cannabis retailers to a rate equal to or above the minimum rate and up to the maximum rate. For cannabis retailers, the minimum tax rate is four percent of gross receipts and the maximum tax rate is six percent of gross receipts.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rate on cannabis testing laboratories is zero percent of gross receipts.

(b) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on cannabis testing laboratories to a rate equal to or above the minimum rate and up to the maximum rate. For cannabis testing laboratories, the minimum tax rate is zero percent of gross receipts and the maximum tax rate is two and one-half percent of gross receipts.

(Ord. No. 2018-22, § I, 11-6-18)

(a) Beginning January 1, 2019, the tax rate on vertically-integrated businesses engaged in retail sales is four percent of gross receipts.

(b) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on vertically-integrated businesses engaged in retail sales to a rate equal to or above the minimum rate and up to the maximum rate. For vertically-integrated businesses engaged in retail sales, the minimum tax rate is four percent of gross receipts and the maximum tax rate is six percent of gross receipts.

(c) Beginning January 1, 2019, the tax rate on vertically-integrated businesses not engaged in retail sales is two and one-half percent of gross receipts.

(d) The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on vertically-integrated businesses not engaged in retail sales to a rate equal to or above the minimum rate and up to the maximum rate. For vertically-integrated businesses not engaged in retail sales, the minimum tax rate is two and one-half percent of gross receipts and the maximum tax rate is four percent of gross receipts.

(Ord. No. 2018-22, § I, 11-6-18)

This chapter does not apply to personal cultivation, as defined in the Medicinal and Adult Use Cannabis Regulation and Safety Act. This chapter does not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and for which a person receives no compensation whatsoever related to that personal use.

(Ord. No. 2018-22, § I, 11-6-18)