Eight years after Proposition 64’s passage, it’s time to fully integrate cannabis into the fabric of Humboldt County’s economy. This means suspending and repealing Measure S, the county’s cannabis cultivation tax, and supporting our local cannabis farmers just like we support all other small businesses in Humboldt.
Humboldt’s Measure S tax was introduced in 2016 and applies exclusively to legal cannabis farmers. It was initially levied as a flat rate based on the square footage of each farm, with no consideration for fluctuating market conditions or crop loss. Since its inception, local farmers have contributed over $55 million in Measure S taxes to the Humboldt County’s General Fund. However, the economic landscape for legal cannabis in California has drastically shifted since 2021, with wholesale prices falling below the cost of production. Despite this collapse in prices, the tax continues to place undue strain on an already struggling industry.
To their credit, the Humboldt County Board of Supervisors has taken steps to address these challenges. In February 2022, they reduced 2021 Measure S tax bills by 85%. Later that year, in November, they suspended tax collection entirely for the 2022 and 2023 cultivation seasons. And most recently, in October 2023, they reinstated the tax at 10% of its original amount for the 2024 season.
Yet, as we head into October 2024, the Board must again decide how to handle the tax for the 2025 cultivation season. The reality is, that even at a reduced rate, this tax no longer makes sense. Cannabis farming in Humboldt has entered a new era — one marked by unprecedented challenges. The old model of taxation based on farm size, regardless of economic conditions, is outdated. It’s time to suspend and ultimately repeal Measure S, ensuring that cannabis farmers are treated like the small businesses they are.
Humboldt County is home to nearly 700 small and independent cannabis farms, with a median size of just a quarter acre. These small farmers are integral to our community’s identity, partnering with local manufacturers, distributors, and retailers across towns like Eureka, Arcata, and Rio Dell. According to a 2024 Sonoma State economic study, legal cannabis contributes $669 million in economic activity annually to Humboldt County and supports 5,651 jobs, roughly 10% of the county’s total economic activity. Cannabis is a vital part of Humboldt’s economy, and it must be treated as such. No other industry or businesses in our county are taxed like Measure S taxes our cannabis farmers.
With that in mind, we are asking the Board of Supervisors to take the following steps:
1. Suspend 100% of Measure S taxes for the 2025 and 2026 cultivation seasons, giving farmers room to survive and adapt.
2. Normalize cannabis by fully integrating it into Humboldt’s economic vision alongside other local industries.
3. Repeal Measure S by placing a referendum on the 2026 ballot, allowing voters to decide its future.
While cannabis may no longer be the booming industry it once was, it remains a crucial part of our local economy. Just as the county supports other small businesses, it must also provide the same level of support to the cannabis industry. Humboldt’s farmers are resilient but need policies that reflect today’s economic realities, not the conditions of eight years ago.
The time to act is now. We urge the Board of Supervisors to make decisions that support the long-term sustainability of our local cannabis community. Let’s ensure that Humboldt continues to be a leader in the cannabis industry, and let’s give our small farmers the chance to thrive once again.
Natalynne DeLapp is the executive director of the Humboldt County Growers Alliance, the trade association for legal cannabis businesses in Humboldt County.