Shasta Lake California Approves Cannabis Permitting

September 5, 2017

Northern California has been a hotbed for cannabis activity for as long as there’s been cannabis activity, so it should come as no surprise that the interest in setting up cultivation facilities has skyrocketed since Proposition 64 passed last November. What has been surprising is the amount of municipalities that have elected to ban commercial cultivation activities. Whether they are worried about federal intervention, perceived negativity, or infrastructure allocation, some towns and counties have decided that the potential cannabis tax windfall just isn’t worth it. Others have taken a different approach and chosen to embrace the cannabis industry.

Shasta Lake, a city of around 11,000 in Northern California, recently approved permitting that will open up nearly 3,800 square miles to adult use cannabis cultivation. Shasta Lake is no stranger to cannabis, the city is one of a few north of Sacramento that currently allows dispensaries, and now local officials are preparing to increase their stake.

The city of Shasta Lake is in an envious position. They own, operate, and control their own utility services, like water and electric, which cannabis cultivators rely on for business. Additionally, the region regularly receives in excess of 45in of rainfall and averages nearly 250 sunny days per year, conditions that promote a natural and economically friendly cultivation industry. Shasta Lake also recently passed a local ordinance outlining the taxes would be cultivators can expect. Taxes are charged per square foot of cultivation area based on a tiered system:

Cultivation Area Rate Per Square Foot

Outdoor 5,000sqft $2.00

Outdoor 5,001-10,000 $5.00

Outdoor 10,001 to 22,000 $7.00

Indoor 5,000sqft $7.00

Indoor 5,001-10,000 $10.00

Indoor 10,001 to 22,000 $15.00

Mixed Light 5,000sqft $5.00

Mixed Light 5,001-10,000 $8.00

Mixed Light 10,001 to 22,000 $11.00

Manufacturing facilities will pay a flat rate of $7.00 per square foot while Dispensaries will be responsible for a 6% tax on gross receipts. The taxes received will be dedicated to improving public works and safety.

Will that be enough to entice potential cannabis cultivators? It should definitely get their attention, as should the convenient access to I-5, the main north south thoroughfare. If that’s still not enough for applicants to add Shasta Lake to their short list, keen eyed geographers will notice that Shasta Lake shares similar latitude to another area world renowned for cannabis quality – Humboldt County.

Parties interested in opening a business in Shasta Lake can do so by reviewing the Application Process here.

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