Cannabis Business Tax Information

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Effective May 4, 2017, the Mendocino County Cannabis Business Tax was imposed on all commercial cannabis cultivators located in the unincorporated areas of the County.

Tax Imposed Per Chapter 6.32 - Cannabis Business Tax

Section 6.32.050(B)(1) Every person who cultivates commercial cannabis in the unincorporated area of the County shall pay an annual commercial cannabis business tax. The initial tax rate effective January 1, 2017 through December 31, 2020, shall be set at two and one half percent (2.5%) of the gross receipts per calendar year.

Reduction in Cannabis Business Tax

Effective September 24, 2024, there is a reduction in Cultivation Operations for Tax Years 2025 & 2026.

More information

For any additional questions, please contact the Tax Collector by phone at 707-234-6848 or by email.

Cannabis Tax Appeals

Important Information on the Tax Appeal Process

Pursuant to Resolution 19-372, adopted by the Mendocino County Board of Supervisors on October 22, 2019, if no commercial cannabis cultivation occurred during the tax period indicated, one may appeal the imposition of the minimum tax imposed as stated on the invoice.

Appellants can file tax appeals with the Cannabis Division via their Accela Citizen Access Portal April 1-May 20 for the previous tax year.

Accela Login: https://aca-prod.accela.com/MENDOCINO/Default.aspx
Accela How-to Guide: How to File a Tax Appeal

All appeal applications must include the below documents and have a paid appeal fee prior to their appeal application being reviewed by the Division:

A copy of the tax invoice from the Treasurer-Tax Collector
Any documentation or evidence supporting your appeal
Please reference the Division Fee Schedule for current application fees

As a reminder, agents should never log in to applicant portals as this may create access issues in Accela. Alternatively, agents should be able to view all applicants through their own Public User account.

Fallowing

Fallowing is a tax status that can potentially lower your True-Up tax for the fallowed year. Applicants who fallow all or a portion of their canopy are still subject to renewal and inspection by the Cannabis Division staff. Fallowing does not affect your status with Department of Cannabis Control ("DCC"), and you must continue to renew your state license.

The Cannabis Division accepts Fallowing applications from December 1st, through December 31st, for applicants who wish to fallow all or a portion of their Canopy for the next calendar tax year.

The Fallowing application period for the tax year 2026 is closed.

Fallowing submissions must be completed in Accela and include a Fallowing Site Plan. The Fallowing Site Plan must clearly show the fallowed area and include the total square footage of both the fallowed canopy and canopy that will remain in use. The Fallowing Site Plan must match the Site Plan the division has on file with your Cannabis Cultivation Business License ("CCBL").

Please reference the Division Fee Schedule for update application fees.

Incomplete Fallowing applications will not be accepted or may be denied by the Division.

Applicants who file a Notice of Fallowing will be required to complete their fallowing application by submitting an Affidavit of Fallowing after the tax year has ended.

For information regarding how to request placing a DCC license into limited operations, please visit the DCC website.