Lake County, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Nursery cultivation tax
- $1.00 per square foot annually
- Testing laboratory tax
- 0% of gross receipts
- Retail/dispensary tax
- 4% of gross receipts
- Manufacturing/other tax
- 2.5% of gross receipts
- Rate adjusts by
- SF Bay Area CPI each July 1
- Effective date
- January 1, 2021
Summary
Lake County's cannabis business tax classifies commercial cannabis operators by activity type, not a flat rate. Nurseries pay per square foot of cultivation, testing labs pay nothing, retailers pay a percentage of gross receipts, and every other cannabis business pays a separate percentage.
1. For cultivation at a nursery, an annual tax of one dollar ($1.00) per square foot of any cultivation site at any nursery. 2. For persons engaged in the operation of a testing laboratory, an annual tax of zero percent (0%) of gross receipts. 3. For every person who engages in the retail sales of cannabis as a dispensary, micro-business, or delivery business, an annual tax four percent (4%) of gross receipts. 4. For every person who engages in a cannabis manufacturing, processing, transportation, distribution or any other type of cannabis business not specifically described hereinabove but referenced in Section 18-64 herein, an annual tax of two and one-half percent (2.5%) of gross receipts.
Full Breakdown
Sec. A of the county code sets four distinct tax classes for commercial cannabis businesses, effective January 1, 2021. Cultivation at a nursery is taxed at one dollar per square foot of any cultivation site at the nursery (Sec. 1). A person operating a testing laboratory is taxed at zero percent of gross receipts (Sec. 2), a specific carve-out distinguishing labs from every other cannabis activity. Retail sales through a dispensary, micro-business, or delivery business are taxed at four percent of gross receipts (Sec. 3).
Every other cannabis business activity not specifically listed, including manufacturing, processing, transportation, or distribution, but referenced in the Sec. 18-64 definitions, is taxed at two and one-half percent of gross receipts (Sec. 4). Sec. S. Bureau of Labor Statistics, with no CPI-driven decrease ever applied. The tax was adopted by Ord. No. 3074, Section 1, on August 7, 2018, under Article VII of Chapter 18 (Cannabis Business Tax). Businesses must report and pay the tax under Sec. 18-66, register under Sec. 18-68, and are subject to audit under Sec. 18-79; the Tax Collector administers collection under Sec. 18-74 and disputes go through the appeal procedure in Sec. 18-75.
Violations & Fines
Sec. 18-71 imposes penalties and interest for late or unpaid cannabis business tax, and Sec. 18-88 makes a violation of the cannabis business tax ordinance a misdemeanor. Sec. 18-81 clarifies that paying the tax does not authorize an otherwise unlawful cannabis business to operate.
Frequently Asked Questions
How does Lake County classify cannabis businesses for its tax?
Do testing labs pay the Lake County cannabis business tax?
Does the cannabis tax rate ever go up automatically?
Sources & Official References
Other rules in Lake County
California rules heatmap·Compare Lake County to another location·View the California local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.