Tax Rates
Cultivation Permit Tax Rates
On April 19, 2022 the Board of Supervisors adopted an ordinance amending the County's Cannabis Business Tax Ordinance (codified in Sonoma County Code Chapter 35). The Ordinance accomplishes the following:
- Reduce the cultivation tax rates by 45% effective July 1, 2021 with a sunset on the reduction on June 30, 2023.
- Amend language for consistency and clarification, including clarifying language regarding operator audits and providing financial records, including gross receipts data, to County consultants.
All businesses engaged in a cannabis industry are assessed taxes by state license type. The information below can be used as an approximate guide to estimate taxes for a business engaged in growing cannabis or manufacturing cannabis related products. These rates are calculated in agreement with the most recent Consumer Price Index and in compliance with the Sonoma County Cannabis Tax Ordinance.
Cultivation Permit Tax Rates for fiscal year 2022-2023 (effective May 20, 2022)
Outdoor Cultivation
| Cultivation License Type | Rate per Square Foot |
|---|---|
| 1C - Specialty Cottage | $0.62 |
| 1 - Specialty Outdoor | $0.93 |
| 2 - Small | $1.24 |
| 3 - Medium | $1.24 |
Mixed-Light Cultivation
| Cultivation License Type | Rate per Square Foot |
|---|---|
| 1C - Specialty Cottage | $1.39 |
| 1 - Specialty Mixed-Light | $2.78 |
| 2 - Small | $4.02 |
| 3 - Medium | $4.02 |
Indoor Cultivation
| Cultivation License Type | Rate per Square Foot |
|---|---|
| 1C - Specialty Cottage | $2.32 |
| 1 - Specialty Indoor | $4.64 |
| 2 - Small | $6.96 |
| 3 - Medium | $6.96 |
Supply Chain Business Tax Rates
Taxes for businesses involved in cannabis-related manufacturing processes will be based on gross receipts. The tax rates for various operator types are listed below.
| Operator Type | Percentage of Gross Receipts |
|---|---|
| Manufacturer | 3.0% |
| Dispensary | 2.0% |
| Cannabis Nursery | 0.0% |
| Distributor | 0.0% |
| Testing Laboratory | 0.0% |
| Transporter | 0.0% |