Tax Information

On February 13, 2018, the County Board of Supervisors adopted Ordinance #5026, which added chapter 50A to the Santa Barbara County code imposing a tax on cannabis operations.

View the complete Ordinance regarding the taxation of commercial cannabis operations

The amount of the taxes are set forth as follows:

Every person who engages in cannabis operations, including the cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling, or distributing cannabis or cannabis products within the unincorporated area of the County shall pay to the County Treasurer-Tax Collector a tax on the gross receipts of each of their operation's activities involving cannabis or cannabis products, whether cultivating, manufacturing, producing, processing, preparing, storing, providing, donating, selling, distributing, or otherwise, computed as follows:

  1. Nursery: 1 % of gross receipts; and
  2. Distributor (excluding Distributor Transport Only): 1 % of gross receipts; and
  3. Manufacturing: 3% of gross receipts; and
  4. Cultivation: 4% of gross receipts; and
  5. Retail: 6% of gross receipts; and
  6. Microbusiness: 6% of gross receipts.

These taxes shall be paid on transfers between each operation listed in subsections I through 6 above, regardless of whether the activity is undertaken individually, collectively, or cooperatively, and regardless of whether the activity is for compensation or gratuitous.