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%