Cannabis Commercial Cultivator Bond - Trinity County, CA in California
Table of Contents
Brief Summary
Trinity County sizes this bond by your canopy, not by a flat figure. Every licensed commercial grower owes fifty cents per square foot of the combined area on all county cultivation licenses they hold, filed with the Tax Collector. A surety bond lets you meet that obligation for an annual premium instead of handing the county a cash deposit for the full amount.
Trinity County Code 3.26.160 requires each person engaged in commercial cannabis cultivation to file with the county Tax Collector, and keep current, a surety bond or cash deposit in favor of the County of Trinity. The amount is fifty cents per square foot of the cumulative square footage of all county cultivation licenses the person holds. The bond backs payment of the county's commercial cannabis cultivation tax.
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How to Apply for a Cannabis Commercial Cultivator Bond:
- Total the square footage on every Trinity County cultivation license you hold.
- Multiply that total by fifty cents to get the required bond amount.
- Get the current bond form from the Trinity County Tax Collector.
- Provide the license holder's legal name exactly as it appears on the county cultivation licenses.
- Complete the bond application with owner information for the credit review.
- Pay the premium and file the executed bond with the Tax Collector.
- Raise the bond amount if you add licenses or licensed area.
Detailed Information About the California Cannabis Commercial Cultivator Bond:
How much the bond is
There is no single bond amount. Trinity County Code section 3.26.160 sets it at fifty cents per square foot of the cumulative square footage of every county cultivation license you hold. Add up the licensed area across all of your county licenses and multiply by 0.50. A grower holding 10,000 square feet in total, for example, posts a $5,000 bond. Add a license or expand, and the required amount goes up with it.
Who has to post it
The requirement applies to each person engaging in commercial cannabis cultivation, meaning cultivation under a county and state commercial cultivation license or a state microbusiness license that includes cultivation. Section 3.26.060 exempts people growing for non-commercial adult use, medical or caregiver purposes under county and state rules. The bond was first due on or before March 1, 2021, and must be kept current for as long as you cultivate.
What it protects
This is a tax bond. It sits inside Chapter 3.26, the Trinity County Commercial Cannabis Tax approved by voters on November 3, 2020. Cultivators self-assess a per pound tax on flower, leaf and fresh plant transferred in METRC, paid in two installments due November 15 and May 15. Late payments draw penalties of 10, 25 and 50 percent as delinquency continues. If a grower does not pay, the county can recover the unpaid tax from the bond, and the grower must repay the surety.
Bond or cash
The code allows a cash deposit in place of the surety bond. Most growers choose the bond so the money stays in the operation. Your cultivation license itself is handled under Chapter 17.43 by the Cannabis Division, while the bond is filed with the Tax Collector. Ask the Tax Collector for its current bond form before the bond is issued.
Eligibility and Requirements for a California Cannabis Commercial Cultivator Bond:
- Bond amount equal to $0.50 per square foot of cumulative county cultivation license area.
- County of Trinity named as obligee.
- Bond filed with and maintained current at the Trinity County Tax Collector.
- Cash deposit accepted as an alternative to a surety bond.
- Owner credit review to set the premium.
California Cannabis Commercial Cultivator Bond FAQs:
Add the square footage of all Trinity County cultivation licenses you hold and multiply by fifty cents. The total licensed area across every license counts, not just one site.
The Trinity County Tax Collector. The bond runs in favor of the County of Trinity and backs payment of the commercial cannabis cultivation tax under Chapter 3.26.
Yes. Section 3.26.160 allows a cash deposit in the same amount. A surety bond lets you meet the requirement without tying up that cash.
No. Section 3.26.060 exempts cultivation for non-commercial adult use, medical or caregiver purposes that follows county and state rules.
You pay a premium that is a fraction of the bond amount. The surety sets it mainly on the owner's credit and the size of the bond.
