Sonoma County officials took another step to deliver tax relief to struggling marijuana growers, as the number of licensed cultivators shrank by almost two-thirds under the burden of hefty state and local taxes.

The County Board of Supervisors this week approved lowering the gross receipts tax to just 2.5% for legal cannabis growers, a reduction of 45%, The Press Democrat reported.

The move came in response to industry pressure, as businesses warn that many are on the brink of moving back into the underground market just to survive. The number of licensed cultivators in Sonoma County has plummeted to just 66 from 155 in May 2023, The Press Democrat noted.

The tax rate for outdoor growers will be slashed to 36 cents per square foot of cultivation canopy from its current rate of 69 cents, The Press Democrat reported, while rates for mixed-light cultivators decrease to $1.15 per square foot from $2.51, and indoor growers will see their rates decrease to $3 from $7.58. The rates will go into effect July 1 after a second board vote to confirm the ordinance’s passage.

The move is the fourth adjustment in the county’s cannabis tax rate since it was established in 2017, and it’s the first time the board has moved to permanently reduce rates. A previous rate reduction in 2022 was temporary.

The move is intended to help stabilize the local cannabis industry, a county marijuana program official told the board, who cited broadly decreasing wholesale prices for cannabis growers in California. The average price per pound of outdoor-grown marijuana flower, the board was told, has plummeted to $143 per pound from $277 a year ago, while indoor flower goes for just $240 a pound, down from $606 a year prior.

Sonoma County is the latest in a string of California localities to cut taxes on struggling marijuana companies in recent years. The Southern California cannabis-friendly town of Desert Hot Springs is also weighing another cannabis business tax cut this month to help dispensaries, to 5% of gross receipts from the current 10%, KESQ reported this week. The city’s mayor even threw his support behind the tax cut.

The move also comes amid a backdrop of fear by California cannabis companies heading into the summer, given that state marijuana taxes are set to increase on July 1, from a 15% excise tax rate to 19%, unless the legislature takes action to forestall the hike.

California Governor Gavin Newsom announced that over $316 million worth of illegal cannabis was seized in the first quarter of 2025. The state said the seizures demonstrated its commitment to the legal cannabis market. The value of the seizures might be a little generous as the state is placing a roughly $2,600 price per pound while the average is generally around $1,000 per pound.

The statistics for the first quarter are as follows:

• 212,681 illegal cannabis plants eradicated
• 120,307 pounds of illegal cannabis seized
• 99 warrants served
• 35 firearms seized
• 29 arrests
• $474,462 cash seized

“This task force continues to make impressive progress disrupting illegal cannabis operators and their supply chain,” said Nathaniel Arnold, Chief of the Law Enforcement Division for the California Department of Fish and Wildlife (CDFW). “UCETF’s accomplishments demonstrate the dedication of all agencies involved in the taskforce.”

The Governor’s Unified Cannabis Enforcement Task Force (UCETF), the Department of Fish & Wildlife (DFW), and the Department of Cannabis Control (DCC) all worked together for the task force.

The UCETF said in a statement that it seized a total of $67,258,232 worth of unlicensed cannabis during the first quarter of the year. The task force’s enforcement efforts also included:

• 19 search warrants served
• 77,923 illegal cannabis plants eradicated
• 40,747 pounds of illegal cannabis seized
• $330,808 cash seized

Agencies involved in UCETF’s first quarter enforcement actions include Department of Cannabis Control, California Department of Fish and Wildlife, California State Park, California Department of Corrections and Rehabilitation, California Department of Pesticide Regulation, Employment Development Department, California Department of Tax and Fee Administration, Oakland Fire Department, City of Oakland Police Department, Torrance Police Department, Alameda County District Attorney’s Office, and California Air National Guard.

DFW’s enforcement efforts for the first quarter 2025 included:

• $97,476,308 worth of illegal cannabis seized
• 47 search warrants served
• 101,473 illegal plants eradicated
• 8,340 pounds of illegal cannabis seized
• 11 firearms seized
• 9 arrests
• $27,073 in cash seized

DCC’s enforcement efforts for first quarter of 2025 included:

• $151,752,966 worth of illegal cannabis seized
• 33 warrants served
• 33,285 illegal plants eradicated
• 71,220 pounds of illegal cannabis seized
• 24 firearms seized
• 20 arrests
• $116,581 in cash seized

“We remain unwavering in our aggressive, strategic approach to reducing illicit cannabis activity,” stated Bill Jones, Chief of DCC’s Law Enforcement Division. “By staying ahead of the threats and swiftly dismantling illegal operations, we are driving up the cost of doing business for bad actors and delivering on our commitment to protect California’s communities and the legitimate industry.”