§ 64-16.404. Tax on commercial cannabis cultivation.

(a)

Beginning January 1, 2019, the tax rates on commercial cannabis cultivation are as follows:

(1)

Seven dollars per square foot of canopy space in a structure where indoor cultivation occurs.

(2)

Four dollars per square foot of canopy space in a structure where mixed-light cultivation occurs.

(3)

Two dollars per square foot of canopy space where outdoor cultivation occurs.

(4)

One dollar per square foot of canopy space in a facility that operates exclusively as a nursery.

(b)

For purposes of determining the tax imposed under this section, the square footage of canopy space is the maximum square footage of canopy space allowed by the county zoning permit authorizing the commercial cannabis cultivation activity. If a person engaged in commercial cannabis cultivation does not have a zoning permit issued by the county, then the square footage of canopy space is the greater of:

(1)

The maximum square footage of canopy space for commercial cannabis cultivation allowed by the state license type for the activity involved; or

(2)

The square footage of canopy space determined by the treasurer-tax collector.

(c)

The board of supervisors may, in its discretion, by ordinance, adjust the rate of the cannabis business tax imposed on commercial cannabis cultivation to a rate equal to or above the minimum rate and up to the maximum rate, as adjusted by the Consumer Price Index pursuant to subsection (d). For commercial cannabis cultivation, the minimum rates and maximum rates are as follows:

(1)

A minimum of seven dollars per square foot of canopy space and a maximum of ten dollars per square foot of canopy space in a structure where indoor cultivation occurs.

(2)

A minimum of four dollars per square foot of canopy space and a maximum of seven dollars per square foot of canopy space in a structure where mixed-light cultivation occurs.

(3)

A minimum of two dollars per square foot of canopy space and a maximum of four dollars per square foot of canopy space where outdoor cultivation occurs.

(4)

A minimum of one dollar per square foot of canopy space and a maximum of two dollars per square foot of canopy space in a facility that operates exclusively as a nursery.

(d)

On July 1, 2021, and on each July 1 thereafter, the maximum annual tax rate per square foot of each type of canopy space shall automatically increase by a percentage equal to the percentage increase of the Consumer Price Index measured between January 1 of the calendar year immediately preceding the increase and January 1 of the calendar year of the increase. No Consumer Price Index adjustment resulting in a decrease of any tax shall be made.

(Ord. No. 2018-22, § I, 11-6-18)