NEWS BRIEF

California cities may tax destroyed cannabis crops

Municipal governments across California are moving to tax marijuana cultivation facilities based on square footage, not on actual crop production.

Such an approach could mean cultivators will potentially have to pay taxes on crops that fail to generate revenue because they were destroyed by weather or other causes, like the recent wildfires, The Union reported.

Here’s what you need to know:

  • Cannabis growers in Northern California are still reeling from wildfires that destroyed more than 30 cultivation facilities in October.
  • Officials in Nevada City, California, have proposed annual taxes on cultivators of $4 a year per square foot of canopy if the grow uses artificial lights; $3 per square foot if a cultivator uses both natural and artificial lighting; and $1 per square foot for all natural grows. Voters still must approve the proposal.
  • The city said it followed the lead of other municipalities across the state when it drafted its tax structure.
  • A member of the Nevada County Cannabis Alliance’s executive committee attempted to convince Nevada City to base marijuana cultivation taxes on sales. But the city council said there was too little time to finalize the rules and get them on a ballot.

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