Monterey County Slashes Pot Tax

At $15 per square foot, Monterey County has one of the highest cultivation tax rates in the state. Now, its marijuana growers are getting some relief.

On Tuesday, the Board of Supervisors voted to bring the county’s cultivation taxes down to $5 per square foot for greenhouses, $8 per square foot for indoor grows, and $1 for nurseries. And that’s not all. Manufacturers, distributors, dispensaries, and testing laboratories will all see significant breaks. 

The objective here is simple: to incentivize the legal marijuana industry and discourage the black market, which continues to be a pressing problem for the county. This action will be followed by robust enforcement measures against illegal operators, said County Supervisor Luis Alejo.

Monterey’s cannabis industry had been pushing for this change for months. Had it not gone through, many marijuana businesses said they were prepared to leave.

The new tax rates become effective July 1.


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