US (CA): Cannabis growers could face taxes on destroyed crops

Local governments around the state of California are adopting taxes that require cannabis growers to pay fees even if they lose their crop in fires or other natural disasters, which some say is an unfair burden on an industry that is trying to come out of the shadows.

Nevada City’s proposed medical cannabis tax structure, which will need voter approval before it takes effect, taxes cultivators based on the size of their grows. The city proposes charging $4 annually per square foot of canopy space in grow facilities that use artificial lighting, $3 per square foot in facilities that use a combination of natural and artificial lighting, and $1 per square foot for all natural lighting.

On top of local taxes, the state charges cultivators $9.25 per ounce of cannabis flowers that enter the commercial market and $2.75 per ounce of leaves.

Jonathan Collier, a member of the Nevada County Cannabis Alliance’s executive committee, said Nevada City’s tax structure is “not bad compared to other places.”

“But the whole model is flawed,” he said.

Read more at the Sierra Sun (Matthew Pera)

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