Please see the information below regarding the following important Tax and Grant items:
- Tax Payment Plan Sign Up Last Day May 31
- Local 2022 Cannabis Tax True Ups Due May 31
- State Cannabis Equity Tax Credit
- State Equity Fee Waivers
- Local Policy Update Wednesday May 24 @ 11AM
1. Delinquent Tax Payment Plan Sign Up by May 31
As you may already know, there has been significant local cannabis tax reform passed in Mendocino County to help support our struggling licensed operators.
- County’s Delinquent Cannabis Tax Amnesty & Payment Plan Program
- Reduction in Cannabis Business Tax for Cultivation and Nursery Operations for Tax Years 2023 and 2024 effective April 28, 2023
The deadline for entering the Payment Plan Program for any taxes in arrears from 2018 – 2021 is May 31, 2023.
SO FAR ONLY 3 OPERATORS HAVE ENTERED THE PAYMENT PLAN.
Operators can also pay all taxes in arrears at once if they are able and will still have their penalties and interest removed.
MCA’s advocacy has been a key component to moving these essential reforms forward to benefit all those in the local cannabis program.
2. Local 2022 Cannabis Tax True Ups Due May 31, 2023
True Ups for 2022 Cannabis Business Tax is due by May 31, 2023. Penalties for late payments begin on June 1, 2023, and can be significant if not addressed quickly, so we recommend submitting payment no later than May 31!
Details on the True Up requirements can be found HERE on the county website.
** We have requested that the County look into the possibility of allowing LEEP eligible operators who have already submitted Direct Grant Applications to redirect a portion of their Grant Allowance to cover the 2022 True Up in a way that would not lead to penalties or interest. They are looking into if this is possible and will let us know as soon as they can. We will keep you updated as soon as we have more info! **
3. State Cannabis Equity Tax Credit
The State Cannabis Equity Tax Credit (CETC) is available for taxable years beginning January 1, 2023 through December 31, 2027. Qualified cannabis businesses may receive a tax credit of $10,000.
A qualified taxpayer is an equity licensee that has received approval (including approval contingent upon the availability of funds) for the fee waiver and deferral program administered by the California Department of Cannabis Control.
The Department of Cannabis Control will provide FTB with a list of qualified taxpayers.
You can claim the nonrefundable credit for taxable years beginning January 1, 2023 through December 31, 2027.
Any unused credit may be carried over for 8 taxable years after the year the credit was generated.
For questions regarding the CETC, contact the Franchise Tax Board at:
More info here: https://cannabis.ca.gov/applicants/apply-for-equity-fee-relief/
4. State Equity Fee Waivers
If you were negatively affected by the criminalization of cannabis, you can apply to the DCC to have your license fee waived or deferred.
CLICK HERE for a State Equity Fee Relief Fact Sheet
CLICK HERE to see if you’re eligible for State Equity Fee Relief before applying, and for information on how to apply if you are.
For licensees renewing in July or August, MCD is prioritizing the processing of your applications locally to meet current State requirements for renewal.
IF THE ORDINANCE CHANGES DISCUSSED AT THE BOS MEETING TODAY PASS TOMORROW, STATE PROVISIONAL RENEWALS WILL BE ABLE TO CONTINUE EVEN IF YOU HAVE NOT RECEIVED A COUNTY ANNUAL CULTIVATION PERMIT OR SUBMITTED YOUR APPENDIX G AFTER JULY 1.
**ANY LATE STATE RENEWAL WILL RESULT IN A 50% PENALTY ADDED TO THE LICENSE FEE. MAKE SURE YOUR STATE RENEWALS ARE ON TIME!
5. Local Policy Update Wednesday May 24 @ 11AM
There will be a lot of news to share from the GGC and BoS meetings from today and tomorrow that will significantly impact how our entire local cannabis program will be moving forward in a way that will benefit all existing operators. This is the one policy update you do not want to miss!
You are invited to a Zoom meeting.
When: May 24, 2023 11:00 PM Pacific Time (US and Canada)
Register in advance for this meeting:
After registering, you will receive a confirmation email containing information about joining the meeting.