Hundreds of Humboldt County marijuana farmers expected to lose licenses over tax debt

Hundreds of marijuana farmers in California’s Humboldt County are in jeopardy of losing their business licenses as a deadline looms to pay county cultivation taxes levied years ago.County growers in the state’s famed Emerald Triangle face a March 31 deadline to eliminate all tax debts associated with Measure S, a ballot referendum approved by voters in 2016 when the industry outlook was far better than it is today.

ADVERTISEMENT According to a Public Records Act request from the Humboldt County Growers Alliance (HCGA) obtained by MJBizDaily more than 75% of the county’s 1,000 or so cultivation permit holders carry some tax debt.The average outstanding tax debt is about $12,000, according to county data and officials, although some owe more than $150,000.

In all, cultivation permit holders owe the county more than $17 million in taxes primarily from 2017 to 2021.The overhang is indicative of a larger statewide predicament: Operators owe more than $1.3 billion in unpaid taxes and related penalties, according to the state’s Department of Tax and Fee Administration.

Tax delinquents’ fates “sealed” Of the 765 listed account holders with cultivation permits in Humboldt County, public records show 415 agreed to a payment plan.Nearly as many, 350, did not.

For this segment of operators who have failed to work with county officials or ignored their warnings, their fate is likely sealed, according to County Supervisor Steve Madrone.He told MJBizDaily most have dropped off the map completely, abandoning grows and other commercial requirements, including property taxes and various application and processing fees.

ADVERTISEMENT “We cannot locate them,” Madrone said.“They’ve walked away from disasters on their property, and it’s a nightmare and a mess.

“There’s not going to be any forgiveness there.” The county’s five-member board is slated to d...