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The Humboldt County Board of Supervisors today granted a reprieve to hundreds of local cannabis growers who collectively owe millions of dollars in Measure S cultivation taxes. 

In a four-to-one vote, with Fifth District Supervisor Steve Madrone dissenting, the board agreed to nix the looming December 31 tax deadline, though only for growers who’ve already entered into payment plans with the county. Those folks will now have up to four more years to square their debts, with 25 percent of the balance due by the end of each calendar year, starting in 2026.

But for tax-delinquent growers who have yet to enter payment plans — most of whom have ignored the county’s attempts to collect — the board opted to bring down the hammer. If those farmers don’t pay their tax bills in full by the end of this year, then the Planning and Building Department will begin the process of revoking their permits.

These moves come six weeks after the board unanimously agreed to eliminate Measure S taxes altogether due to collapsing revenues from the struggling industry as well as burdensome administrative costs. Earlier this year, the board agreed not to enforce a previously established deadline of March 31 for Measure S taxes, extending it to the end of the year. 

Today’s vote represents the latest gesture of leniency toward the county’s remaining legal weed farmers. Supervisors justified the decision by noting that revoking their permits would only drive them back to the black market while likely eliminating any possibility of collecting what’s owed.

Planning and Building Director John Ford informed the board that of the 1,006 cannabis cultivation permits issued countywide since legalization, only 518 growers still have active permits. 

In all, he said, 815 current or former permit-holders owe a total of $8.9 million in Measure S taxes. The 518 active growers collectively owe about half of that amount ($4.3 million). And less than half of those folks (240 permit holders, representing $3.35 million in delinquent taxes) have entered into payment plans.

At the risk of getting too deep in the weeds, another 63 weed farmers have permit applications still in process. They collectively owe the county a bit over $1 million in Measure S taxes, having been granted interim permits. Of those 63 growers, 33 have entered payment plans. They collectively owe $561,456 in Measure S taxes.

Summing up this state of affairs, Ford said, “Over half of the community of cultivation sites owe Measure S taxes.” He asked the board whether it was prepared to start revoking all those permits, given the real humans behind them.

“Every number up there represents a person,” Ford said. “Some of them have stories that it’s hard for me not to be sympathetic to — I’ll just say that. I know this is a hard decision, and that’s why I wanted to bring it back and make sure this is really the direction the board wanted to go.”

First District Supervisor Rex Bohn said that while he’s aware that the board has been “kicking this can down the road,” he also believes, “We’re going to drive everybody back underground if we suspend these licenses.”

He and Second District Supervisor Michelle Bushnell said they’d feel fine revoking the permits of people who have yet to enter payment plans, most of whom have likely gone belly-up and left the county. Their colleagues agreed. There was some debate over how to structure a repayment plan for the balance of permit holders, and Bohn advanced a proposal that had been suggested via email by the Humboldt County Growers Alliance: Four years to pay up, with 25 percent due each year.

“I’m not willing to go out four years,” Fifth District Supervisor Steve Madrone said. “I think that’s a long time. It increases the administrative burden on the county. We’re in a bad budget place.”

During the public comment period, quite a few growers called in to voice support for the four-year plan, with many describing severe economic woes. One said he’s paid more than half of his Measure S tax bill and recently sent in a $4,000 check, adding, “But that was all my money from sales, so I don’t really have any money for Christmas.”

Suzanne Maese of cannabis consulting firm Margro Advisors was emotional, her voice shaking as she said, “This county has asked far too much of these folks. … I want you to know that you’re dealing with people’s livelihoods. For you folks, it’s just a vote. For our farmers, it’s a matter of putting food on their table.”

Appearing in person, farmer Nya Hessler said the recent federal ban on intoxicating hemp was a rare example of good news for local cultivators. 

“We might see the best year we’ve seen in years,” he said.

Gordon

Ross Gordon of the Humboldt County Growers Alliance was among those urging support of the four-year repayment plan.

“Doing it over a longer period of time is going to provide more people with an opportunity to pay, an opportunity to bring that revenue in,” he said.

Ultimately, the board agreed. Bohn made the motion, and after some discussion about moving the annual due dates or maybe offering discounts for early payment, the supervisors coalesced around a plan, though Madrone still objected.

“I think going out four years is way too much,” he said. But he recognized that he was in the minority. “Looks to me like this is going to pass probably four to one, and that’s fine. I have no problem with that.”

And that is indeed how it passed.