To: Board of Supervisors
Department or Agency Name(s): County Counsel and Auditor-Controller-Treasurer-Tax Collector
Staff Name and Phone Number: Kristin Horrell, Deputy County Counsel, 707-565-2421
Vote Requirement: Majority
Supervisorial District(s): Countywide
Title:
Title
Hearing Officer Proposed Decision for Cannabis Tax Assessment Appeal
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Recommended Action:
Recommended action
Adopt Hearing Officer Proposed Decision in the Matter of the Cannabis Business Tax Appeal by Pascale Théard, Appellant, Operating as Cheetah Riding Mongoose, Inc. for Cannabis Operations at 539 Hunter Lane, Santa Rosa.
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Executive Summary:
The County’s Cannabis Business Tax Ordinance, codified in Chapter 35 of the Sonoma County Code, sets forth an appeal procedure for any taxpayer who has received a notice of assessment from the County’s Treasurer-Tax Collector for failure to pay the taxes due. Following these procedures, the Board of Supervisors appointed the Office of Administrative Hearings to hear the cannabis tax appeal for Pascale Théard, who operated a cannabis business under the name Cheetah Riding Mongoose, Inc. The proposed decision of the Hearing Officer is coming to the Board, as required by Sonoma County Code Section 35-33, for a final decision on the taxes, penalties and interest assessed. Staff recommends the Board adopt the Hearing Officer proposed decision to uphold the cannabis business tax, plus delinquent penalties and interest, assessed against Cheetah Riding Mongoose, Inc. in the amount of $73,829.89 as properly calculated, and that additional delinquency penalties in the amount of $6,577.28 have become due and payable, for a total amount due of $80,407.17, and further that interest has accrued in the amount of $986.50 for each month from May 1, 2019 until payment is made in full.
As of today’s date, the total amount due is $129,736.59, comprised of $65,772.64 in base tax, $13,154.56 in delinquent penalties and $50,809.39 in interest.
Discussion:
The Cannabis Business Tax Ordinance (“Ordinance”) requires that, to appeal the assessment of cannabis business taxes, the taxpayer must apply in writing to the Treasurer-Tax Collector for a hearing on the assessment. Following that hearing, any taxpayer aggrieved by any decision of the Treasurer-Tax Collector with respect to the amount of tax, interest, penalties and fees, if any, due may appeal to the Board of Supervisors (the “Board”). The Board may appoint a referee to take testimony at the subsequent tax appeal hearing, who shall report their findings and recommendations to the Board, who will then make a final decision on what tax, fees, interest or penalties, if any, are due to the County.
The Board can refer any hearing duties to the County Hearing Officer, whose duties may be performed by the Office of Administrative Hearings (OAH). Accordingly, the Board appointed the OAH to hear this cannabis business tax assessment appeal for Pascale Théard (Appellant), operating as Cheetah Riding Mongoose, Inc. for cannabis operations that took place at 539 Hunter Lane, Santa Rosa, during Fiscal Year 2018 - 2019.
On May 3 and May 24, 2023, the OAH heard the appeal against Appellant. Appellant and County staff presented their case, as allowed by the Hearing Officer. The Hearing Officer has submitted a written recommendation in the form of a proposed decision, as required by the Ordinance and the County’s Rules and Procedures for Administrative Hearings, which governed the hearing. The Board shall determine from the proposed decision the amount of tax, interest, penalties and fees, if any, due and payable to the County.
Staff recommends that the Board accept the proposed decision of the Hearing Officer to uphold the amount of cannabis business tax, penalties and interest due from Cheetah Riding Mongoose, Inc. in the amount of $80,407.17, along with an additional $986.59 in interest accruing for each month beginning May 1, 2019 and continuing until full payment has occurred, for a total amount of $129,736.59 currently due.
The decision made by the Board, based on the recommendation of the Hearing Officer, is final and conclusive. A copy of this decision shall be served upon the Appellant.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
N/A
Fiscal Summary
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FY23-24 Projected |
FY 24-25 Projected |
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Narrative Explanation of Staffing Impacts (If Required):
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Attachments:
Proposed Decision of Hearing Officer
Related Items “On File” with the Clerk of the Board:
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