Humboldt County extends deadline to pay marijuana cultivation taxes

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Humboldt County supervisors have extended the deadline for hundreds of marijuana farmers to pay off cultivation taxes enacted years ago.

County growers faced a March 31 deadline to eliminate all tax debts related to Measure S, a ballot referendum approved by voters in 2016, more than a year before the launch of adult-use sales.

Supervisors pushed the looming deadline to April 4 for 210 license holders to make their first payments or face suspension, according to the Standard Times of Eureka.

For the hundreds more who have made some payment, their deadline was extended to Dec. 31, 2025.

No more relief

The county supervisors indicated at their March 25 meeting this will be the final extension, the newspaper reported.

Despite the extensions, hundreds of Humboldt County farmers are still in jeopardy of losing their business licenses.

More than 75% of the county’s 1,000 or so cultivation permit holders carry some tax debt, MJBizDaily reported recently, citing information obtained by a Public Records Act request from the Humboldt County Growers Alliance (HGCA).

The average outstanding tax debt is roughly $12,000, according to county data and officials, although some owe more than $150,000.

In all, cultivation permit holders owe the county more than $17 million in taxes, primarily from 2017 to 2021.

Of the 765 listed account holders with cultivation licenses in Humboldt County, public records show 415 agreed to a payment plan, or roughly 54%.

“Cultivators must now take immediate steps to address their tax obligations or risk losing their permits,” HCGA Executive Director Natalynne DeLapp warned in a memo sent to members.

Addressing the tax debt

In the letter, obtained by MJBizDaily, DeLapp encouraged HCGA members to confirm their tax records with the county treasurer and planning department because of “known discrepancies” between the agencies as well as unsubstantiated reports of clerical errors and missing records.

In response to mounting challenges that hindered small farm competitiveness, Humboldt County supervisors in November 2022 suspended the Measure S excise tax for two years and deferred related payments and penalties two years prior.

For the past year, the excise tax was set at 10 cents per square foot for outdoor, 20 cents per square foot for mixed-light and 30 cents per square foot for indoor cultivation.

“Waiting for the county to notify you is not a solution – and ignorance is not a defense,” DeLapp told HCGA members in the memo.

“Be proactive. Know your standing. Address it now.”

The March 25 meeting, according to DeLapp and others in attendance, was tense and emotional as more than two dozen farmers and residents shared their personal stories and economic challenges of operating in a depressed market with declining active licenses and total sales as well as price contraction and lack of retail access.

Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.