UKIAH, CA., 5/8/26 — Tuesday, the Mendocino County Board of Supervisors passed two motions that will change how cannabis cultivators in the county pay taxes on their product and get licenses. The board also passed a motion to forgive delinquent taxes for some.

Two cannabis taxes are affected by the changes. The board canceled the minimum cannabis cultivation tax, also known as True-Up, which is calculated based on license size, At the same time, it also canceled reductions on the cannabis business tax, which now go back to 2.5% of gross sales receipts.

Cultivators will no longer pay by the square footage of plants their permits allow, but they will be paying a higher percentage for gross sales tax. The True-Up tax will be canceled starting this year, while the 2.5 % business tax starts in 2027. Cultivators have been paying a reduced rate for that tax since 2023.

Part of the new regulations is that cultivators must be current on their cannabis business taxes to renew their county license, starting Jan. 31, 2028.

The board also wrote off several years of delinquent cannabis business taxes, deeming them uncollectable. Chamise Cubbison, county auditor-controller/treasurer-tax collector, said the county doesn’t have the necessary information on delinquent files.

Cubbison also said the permit program was not set up for possible collections, and each case would have to be looked at individually.

Delinquent cannabis business taxes for 2018-2019 will be written off as uncollectable. Delinquent taxes owed for 2020-2024 will also be written off, but only for those no longer in the cannabis program. Those still in the program must pay for those years if delinquent but are excused from interest and penalties.

District 5 Supervisor Ted Williams said this seemed unfair.

“It seems like it’s a little bit unfair to the people who are still in the program that they’re going to pay the tax and the people who walked away don’t owe,” Williams said. “it’s almost a penalty for continuing to work with us, continuing to be legitimate and pay taxes and meet all the requirements.”

District 2 Supervisor Maureen Mulheren pointed out that many of those who dropped out never cultivated and may no longer live in the county. She also noted that the county’s cannabis program wasn’t set up as it is now.

“The cannabis program, I would say existed, but not was up and running in the way that it is now,” Mulheren said. “The people that were in program 2020 through 2024, many of them did not make it through the program.”

Williams said he thought everyone should get the same deal, “out of general fairness.”