Yolo County, CA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Cultivation tax range
- 1% to 15% of gross receipts
- Cultivation initial rate
- 4% (2018-2020), then 5%
- Other cannabis business rate
- Initial 5%, range 1%-15%
- Rate change limit
- 1 change/12 months, max 2 points
- Late payment penalty
- 10% plus 1.5% monthly interest
- Collecting agency
- Yolo County Treasurer-Tax Collector
Summary
Yolo County splits its cannabis business tax into two rate classes for unincorporated-area operators: cultivation and all other cannabis businesses. Both run 1% to 15% of gross receipts, with the Board of Supervisors free to set differing rates by category within that band under Sec. 3-18.05.
a) There is established and imposed a cannabis business tax at the rates set forth in this Chapter. b) Tax on commercial cannabis cultivation. 1) Every person who is engaged in commercial cannabis cultivation in the unincorporated area of the County shall pay an annual cannabis business tax. The minimum tax rate for commercial cannabis cultivation shall be one percent of gross receipts per fiscal year and the maximum rate shall be 15 percent of gross receipts per fiscal year. ... c) Tax on all other cannabis businesses. 1) Every person who is engaged in a cannabis business other than cultivation ... in the unincorporated area of the County shall pay an annual cannabis business tax. The minimum tax rate shall be one percent of gross receipts per fiscal year and the maximum rate shall be 15 percent of gross receipts per fiscal year. The initial tax rate shall be set at five percent of gross receipts per fiscal year. ... e) ... the Board of Supervisors shall not increase or decrease the effective tax rate for any category of cannabis business more frequently than once in a 12 month period and not by more than two percentage points, either up or down.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-21: Supplement 2026 S-21 includes: Local legislation current through Ord. 1584, effective June 25, 2026).
Full Breakdown
Yolo County Code Chapter 18 of Title 3 imposes an annual cannabis business tax on every person operating a cannabis business in the unincorporated area, and Sec. 05 classifies those businesses into two tax categories. Commercial cannabis cultivation carries its own rate structure: the code sets a floor of 1% and a ceiling of 15% of gross receipts per fiscal year, with an initial rate of 4% running from July 1, 2018 through June 30, 2020 that automatically stepped up to 5% on July 1, 2020 unless the Board of Supervisors acted otherwise.
All other cannabis businesses, defined to include nurseries, processors, transporters, distributors, manufacturers, and testing laboratories, fall into a second category taxed at the same 1%-to-15% range, with an initial rate fixed at 5% of gross receipts. Sec. 05(d) lets the Board of Supervisors, by ordinance and at its discretion, set a different rate for each category, including separate treatment for medical versus adult-use cannabis, so long as it stays inside the statutory floor and ceiling. Sec. 05(e) caps how fast those category rates can move: no more than one change per 12-month period and no more than two percentage points up or down at a time.
The tax is administered on a fiscal-year basis with quarterly returns due to the Treasurer-Tax Collector under Sec. 06, and Sec. 19 gives the Treasurer-Tax Collector authority to audit a business's books, records, and equipment to verify the reported gross receipts underlying whichever category rate applies. Businesses outside the cannabis industry are not classified or taxed under this chapter; Yolo County has no separate general business license tax ordinance in Title 3.
Violations & Fines
Sec. 3-18.10 penalizes late payment with a 10% penalty on the unpaid tax plus interest at 1.5% per month from the due date; if the tax stays unpaid more than one calendar month past due, a second 10% penalty applies on top of continuing 1.5% monthly interest on both the tax and the accrued penalties. Returned checks or failed electronic payments carry the same tax, fee, penalty, and interest exposure.
Frequently Asked Questions
Does Yolo County tax cannabis businesses differently by type?
What is the current cannabis cultivation tax rate in unincorporated Yolo County?
How often can Yolo County change cannabis business tax rates?
Does Yolo County have a general business license tax for non-cannabis businesses?
What happens if a cannabis business pays its Yolo County tax late?
Sources & Official References
Other rules in Yolo County
California rules heatmap·Compare Yolo County to another location·View the California local taxes & fees overview
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