Stanislaus County leans toward putting cannabis tax on November ballot. What are the rates?

Stanislaus County voters could see a cannabis tax on the November ballot that would apply to licensed businesses in the unincorporated areas.

The cannabis tax would replace the fees in development agreements with beleaguered cannabis operations to simplify assessments and reduce administrative burden. The county’s proposed rates are similar to the commercial cannabis business taxes in Modesto.

The Board of Supervisors, on a 4-1 vote, introduced the ordinance Tuesday and will consider an amendment at a public hearing Feb. 27, after which the board could formally act to put the measure on the ballot.

If approved by a simple majority, the measure would establish a cannabis business tax ranging between 1% and 8% of gross sales. The county would start with a 8% tax rate for retail shops and could adjust the rate within that range from year to year.

The initial rates for cultivation, nurseries, distribution, manufacturing and testing would be 2.5%. The ordinance would limit tax-rate increases to a half percent in any year.

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