The Humboldt County Board of Supervisors reduced the rate of a cannabis excise tax to zero on Oct. 29, ending a long debate over the law’s effect on struggling growers.

Voters passed the Measure S Cannabis Excise Tax in 2016 at the height of the Green Rush, amid optimistic forecasts for the newly legalized crop. The tiered system initially charged $1 to $3 per square foot, depending on whether businesses grew outdoors or inside. But falling wholesale prices and a saturated market left many farmers unable to pay the tax. The measure has also caused significant administrative burdens for the local government.

Supervisors have repeatedly paused or reduced the tax — it’s currently set to 10% of the original rate. Still, the county claims more than 2,500 growers owe about $11 million in back taxes.

On Tuesday, the board considered either eliminating the tax or paying for a study to determine alternatives. Growers and cannabis business representatives urged the board to repeal the tax.

Local grower Hannah Whyte was one of those who spoke in favor of repealing Measure S, which she called an “incredible experiment” that was initially supported by many cultivators.

“It hasn’t worked out,” Whyte said. “We thought we would be the Napa of cannabis, right? And that potential is not over, but it cannot happen with any more burdens.”

Ross Gordon of the Humboldt County Growers Alliance said cannabis should be treated like any other business — without extra taxation.

“We can have successful cannabis businesses here. But they’re going to be just like any other business,” he said. “The Green Rush is over. There’s no extra profit hiding somewhere.”

Gordon said the average wholesale cannabis price has fallen from $350 to $250 per pound within the last year.

“We’ve lost about half of the farms here in Humboldt since 2021,” Gordon said. “I’m sure that we’re going to continue to lose more.”

Nick Glass and his wife said they can no longer afford to employ people on their farm.

“So we spent the weekend building resumes, and hopefully the Humboldt economy is good enough to support us as we have to move to town if our farm closes,” he said.

The board could bring the tax back in the future. That power can only be changed by voters. And while Measure S taxes won’t be collected in 2026, those who owe back taxes must still pay the county. The county has set a Dec. 31 deadline for those who owe a balance.