On March 25, the Humboldt County Board of Supervisors will face a critical decision — one that will determine the fate of hundreds of local cannabis farms and the broader economic health of our county.
Just last week, the county formally revoked 22 cannabis permits — a procedural move for businesses that had already abandoned operations. But now comes the real test: What will happen to the farmers still trying to survive?
At the heart of this crisis is Measure S, a cultivation tax unique to cannabis — no other industry in Humboldt County pays a tax simply for the right to do business. This is not a tax based on revenue or sales — it is a mandatory tax on permitted square footage, regardless of whether a farmer sells a single pound of cannabis.
Since 2017, cannabis operators have struggled under the weight of Measure S. While the county has implemented tax reductions — cutting rates by 85%-100% in recent years — many farmers still carry outstanding tax debts from 2017-2020, when the tax was significantly higher, and the industry’s future seemed promising.
To be clear, these are debts that licensed farmers agreed to pay as part of the cost of doing business. Many cannabis farmers have worked hard to stay current on their taxes, and their diligence should not be overlooked. But today’s economic realities cannot be ignored either.
According to a public records request from the Treasurer-Tax Collector in November 2024, 765 permits have outstanding Measure S debts. Of these, 415 are in payment plans, while 350 have not entered into a plan at all.
The March 31, 2025, deadline now looms large. By this date, all outstanding Measure S taxes must be paid in full, or permit holders face suspension and revocation. Some farmers on this list are no longer in business, but many are still actively cultivating — and barely scraping by.
For the past four years, cannabis farmers have faced market collapse, price suppression, and rising costs of production. Many are operating at a loss or breaking even, living paycheck to paycheck — just like many working families in Humboldt County.
The idea that they have tens of thousands of dollars readily available to pay down old tax debts is simply unrealistic. That’s not an excuse — it’s just the reality of the market today.
Meanwhile, the county faces its own challenges: Unlike property taxes, which can be placed as a lien against real estate, Measure S is a square footage tax that must be paid by the permit holder — who may not even own the land they farm. This makes tax collection far more difficult, especially when businesses shut down or permit holders leave the area. The longer these debts go unpaid, the harder they become to recover.
So, what happens now?
The county has several options:
• They could revoke all permits with unpaid taxes, effectively eliminating jobs and economic activity, making it even harder to collect those debts.
• They could create a structured payment plan — not to waive back taxes, but to give farmers a realistic way to pay them down over time, instead of an “all or nothing” deadline.
• They could recognize that Measure S is a failed tax model and begin the process of repealing or replacing it with something more equitable and sustainable for the long term.
For the past decade, I have been on the front lines of Humboldt County’s cannabis policy, from the hopeful optimism of 2015 to the grim realities of today’s struggling economy.
Humboldt County is hurting. People are losing jobs, businesses are closing, and lean resources are being stretched even further. But our farming community remains resilient.
It’s time to stop treating cannabis as a burdensome industry and start recognizing it for what it is — agriculture. Cannabis is not plutonium — it is a plant. The same plant as hemp (cannabis sativa).
The Board of Supervisors now faces a choice:
Tax farmers out of existence — or find a path forward that allows Humboldt County’s cannabis industry to survive, continue driving economic activity, stewarding their land, completing environmental improvements, and supporting our community.
This is not about asking for a handout.
It’s about finding a fair way forward — one that holds businesses accountable while acknowledging today’s economic challenges.
Humboldt’s cannabis industry can still be a critical economic driver — but only if we give it a chance to succeed.
Natalynne DeLapp is the executive director for the Humboldt County Growers Alliance (HCGA), which works to preserve, protect, and enhance Humboldt County’s cannabis industry.
