To: Board of Supervisors of Sonoma County
Department or Agency Name(s): Auditor-Controller-Treasurer-Tax Collector
Staff Name and Phone Number: Brooke Koop: 565-3232
Vote Requirement: Majority
Supervisorial District(s): All Districts
Title:
Title
Extension of Due Date and Waiver of Penalty and Interest Provisions for Transient Occupancy Tax, Business Improvement Area, and Commercial Cannabis Cultivation and Supply Chain Operators Unable to Pay as a Result of Mandatory Evacuations, Power Shutoffs, and Structure Damage/Loss as a result of the 2019 Kincade Fire.
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Recommended Action:
Recommended action
A) Approval of the Sonoma County Board of Supervisors to temporarily extend the first quarter due date of the fiscal year 2019-20 for all operators, waive Transient Occupancy Tax and Business Improvement Area delinquent penalties and interest for the first and second quarters of fiscal year 2019-20 for operators suffering structure damage or loss as a result of the Fire, and delegate authority to the Auditor-Controller-Treasurer-Tax Collector to extend waivers under extraordinary circumstances.
B) Approval of the Sonoma County Board of Supervisors to temporarily extend the first quarter due date of the fiscal year 2019-20 for all operators, waive Cannabis Business Tax delinquent penalties and interest for the first and second quarters of fiscal year 2019-20 for commercial cannabis cultivation and supply chain operators suffering structure damage or loss as a result of the Fire, and delegate authority to the Auditor-Controller-Treasurer-Tax Collector to extend waivers under extraordinary circumstances.
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Executive Summary:
The first quarter payment deadline for Transient Occupancy Tax (TOT), Business Improvement Area (BIA) Assessment, and Cannabis Business Tax was October 31, 2019. Due to the widespread mandatory evacuations and the closure of the Auditor-Controller-Treasurer-Tax Collector's (ACTTC) office, the ACTTC is requesting an extension of the first quarter due date to November 30, 2019. The second quarter payment deadline for the TOT, BIA Assessment, and Cannabis Business Tax is January 31, 2020.
Due to the impact of the recent Kincade Fire (Fire), the ACTTC is requesting a temporary waiver of delinquent penalties and interest for operators that suffered structure, business property, and/or business records damage for the first quarter and second quarter until January 31, 2020, and April 30, 2020, respectively.
Discussion:
Transient Occupancy Tax/Business Improvement Area Assessments
The recent widespread mandatory evacuations, power outages, and closure of the ACTTC office made it difficult for TOT operators to meet the filing and payment deadline of October 31, 2019. As a result, some operators were unable to file their tax returns and make their payment timely. The ACTTC is requesting an extension of the first quarter due date to November 30, 2019.
The recent Fire has resulted in damage/loss of vacation rental properties and corresponding documentation. As a result, some affected operators will not be able to remit taxes for the first and second quarters of fiscal year 2019-20 by the respective due dates of October 31, 2019, and January 31, 2020.
The ACTTC is requesting a temporary waiver of delinquent penalties and interest for those operators subject to TOT and/or the BIA Assessment who have damaged or lost businesses or business documentation due to the Fire. The first quarter waiver will remain in effect until January 31, 2020, and the second quarter waiver will remain in effect until April 30, 2020, after which affected operators will be subject to delinquency penalties for failure to report and remit TOT and BIA.
The ACTTC is also requesting authority to exercise his discretion to extend each of these waivers for an additional three months in extraordinary circumstances. Under no circumstances will extraordinary waivers extend beyond April 30, 2020, for the first quarter and July 31, 2020, for the second quarter. Should the ACTTC discover that an operator falsely reported a business or documentation loss, the ACTTC will impose delinquent penalties as would have otherwise been imposed.
Cannabis Business Tax
The recent widespread mandatory evacuations, power outages and closure of the ACTTC office made it difficult for Cannabis Business Tax operators to meet the filing and payment deadline of October 31, 2019. As a result some operators were unable to file their tax returns and make their payment timely. The ACTTC is requesting an extension of the first quarter due date to November 30, 2019.
Some cannabis cultivation and supply chain operators have been affected by damage or loss due to the Fire. As a result, some affected operators will not be able to remit taxes for the first and second quarters of 2019 by the respective due dates of October 31, 2019, and January 31, 2020. The ACTTC is requesting a temporary waiver of delinquent penalties and interest for commercial cannabis operators who have damaged or lost businesses or business documentation due to the Fire. The first quarter waiver will remain in effect until January 31, 2020, and the second quarter will remain in effect until April 30, 2020. The ACTTC is also requesting authority to exercise his discretion to extend each of these waivers for an additional three months in extraordinary circumstances. Under no circumstances will extraordinary waivers extend beyond April 30, 2020, for the first quarter and July 31, 2020, for second quarter. Should the ACTTC discover that an operator falsely reported a business or documentation loss, the ACTTC will impose delinquent penalties as would have otherwise been imposed.
Commercial cannabis operators that incurred crop loss must appeal to the Department of Agriculture/Weights and Measures. Cannabis business tax relief may only be granted in accordance with the Department of Agriculture/Weights and Measures inspection and verification records. The proposed waivers will provide additional time for affected operators to contact the County to seek relief.
Prior Board Actions:
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Narrative Explanation of Staffing Impacts (If Required):
Attachments:
1) Resolution Extending the First Quarter due date of the Fiscal Year 2019-20 for all Operators and Waiving Delinquent Penalties and Interest Under the Transient Occupancy Tax and Sonoma County Tourism Business Improvement Area Ordinances for the First and Second Quarters of Fiscal Year 2019-20 for Operators Suffering Structure or Business Damage from the 2019 Kincade Fire
2) Resolution Extending the First Quarter due date of the Fiscal Year 2019-20 for all operators and Waiving Delinquent Penalties Under the Cannabis Business Tax Ordinance for the First and Second Quarters of Fiscal Year 2019-20 for Operators Suffering Structure or Business Damage from the 2019 Kincade Fire
Related Items “On File” with the Clerk of the Board: