No other hard-hit sector is begging for tax relief

EDITOR: The cannabis industry is experiencing a classic problem of oversupply – falling prices. On January 4th the Supervisors explored tax relief, while some growers threatened to avoid paying taxes by returning to the black market. Both groups ignored the fact that the County has applied for $5.5 million in State equity grants to help pay cultivator permit and licensing costs.  

Despite firestorms and a pandemic that have kept customers away from Sonoma County businesses, no special tax treatment has been proposed for our hotels, restaurants, or grape growers.

Cannabis had a bumper crop in 2020, cultivators applied for additional permits, and increased 2021 production. The market responded to this oversupply with falling prices. Such is business.

Likewise, grape growers had a bumper crop in 2018 resulting in 2019 price declines. Then, the August firestorm struck and the 2020 grape crop was lost to smoke taint. Although unable to sell our grapes, we paid our farming costs, taxes and grape commission fees – which, like the cannabis tax, are not based on gross revenue.

Taxes are a business expense – other taxpayers should not be expected to subsidize the cannabis industry.

Judith Olney

Russian River grape grower