County Offers Four Year Repayment Plan for Cannabis Taxes

On December 9 the Humboldt County Board of Supervisors approved a repayment option for cannabis cultivators who have already entered payment plans to settle past due Measure S cultivation taxes. Under the motion, qualifying growers must remit 25 percent of their outstanding balance each calendar year beginning in 2026, with up to four years to complete repayment. The measure passed by a vote of 4 to 1.

County staff told the board that of 1,006 cultivation permits issued historically, 518 remain active. Staff reported that 815 current and former permit holders collectively owe about 8.9 million dollars in Measure S taxes. For delinquent growers who have not entered payment plans many of whom staff believe have left the county or the industry the board directed staff to begin the process of revoking permits if bills are not paid in full by the end of the calendar year.

The vote follows earlier board actions to reduce Measure S rates and to explore options that included suspension or repeal and replacement of the tax. Supervisors debated the challenge of balancing the county need to collect revenue with the concern that aggressive enforcement could push compliant growers back into an illicit market that undermines public safety, land stewardship and local economic stability.

For Humboldt residents the decision carries several local implications. The repayment plan offers a pathway to keep more cultivators in the regulated market and preserve permit compliance that ties operations to environmental rules and local oversight. At the same time the threat of permit revocations ahead of the year end deadline raises the possibility of increased unregulated activity, potential enforcement costs and pressure on rural communities where cannabis cultivation is concentrated.

County staff will now implement the board direction, notifying growers of repayment requirements and initiating revocation proceedings for those who remain outside payment agreements. The move sets a timeline for collections and enforcement that will shape the regulated cannabis sector and county revenues in the coming year.