San Benito County • Hollister-only retail • Tax suspension through Dec 2026

Cannabis licensing in
San Benito County.

A small rural county with a Hollister-only retail footprint (Higher Level of Care anchor), a cultivation-tax exemption through December 2026 (effective March 27, 2025), and a firm unincorporated dispensary ban. Here’s the county pathway.

Where San Benito operators get tripped up

The four traps
nobody scopes alone.

Every figure below is sourced to a San Benito County ordinance or Central Coast reporting — see each card. These are the four regulatory surfaces we’re most often called in on, and what they cost when handled alone.

Hollister only

Unincorporated dispensary ban

The unincorporated county prohibits dispensaries — any retail investment sited outside Hollister city limits is unrecoverable. Higher Level of Care Hollister (1802 Shelton Dr) was the first licensed adult-use dispensary in the county. (San Benito Live)

Dec 2026

Cultivation-tax exemption ends

San Benito County cultivation tax is suspended / exempted through December 2026 (Ord. effective March 27, 2025). Operators planning past that date face returning base rates — reconciling back to the cutoff is a fast, avoidable trigger. (County Cannabis Program)

27.25%

Hollister effective retail tax stack

Hollister imposes a 5% gross-sales tax on dispensaries — on top of the 15% state excise and 7.25% state sales tax. That’s a 27%+ retail-tax burden operators budget to at the register, before compliance or rent. (SanBenito.com)

3,354

Silver Creek unlicensed-grow enforcement

The Silver Creek eradication (June 22, 2016) seized 3,354 plants with oil/gasoline creek contamination — the template for county enforcement posture on unlicensed cultivation. A February 2018 Ladd Ln abatement yielded 200 lb additional plants. (San Benito Live)

This is the work we do: San Benito County Code Ch. 7.02, Ch. 19.43, and Art. V Business Activities Tax (Ords. 1036 / 1040) Regulatory Permit + Use Permit preparation, Hollister Municipal Code retail-permit coordination, cultivation-tax-exemption compliance positioning for post-Dec 2026 re-activation, and 24-hour response on any abatement or Sheriff / UNET / Hollister PD enforcement action. Most of our San Benito work is Hollister retail plus unincorporated cultivation positioned to the 2026 tax-exemption sunset.

The local pathway

Hollister retail anchors;
unincorporated cultivation eligible.

San Benito County is a small Central Coast jurisdiction tucked between Santa Clara, Monterey, and Fresno Counties, with population concentrated along State Route 25 and the City of Hollister. Its notable feature is the split posture: the unincorporated county prohibits dispensaries but permits cultivation, manufacturing, distribution, testing, and delivery under limited terms, while the City of Hollister runs the county’s only retail program. Higher Level of Care Hollister Inc. was the first licensed adult-use dispensary (1802 Shelton Dr) — reported in BenitoLink.

The unincorporated pathway runs through County Code Ch. 7.02 (Cannabis Business Ordinance, Ord. 1036), Ch. 19.43 (Land Use, Ord. 1036), and Business Activities Tax Art. V (Ord. 1040) — authorization requires a Regulatory Permit plus a Use Permit (County ordinances). The county hemp program is separately regulated under Ch. 7.04 (Ord. 1005), and personal cultivation under Ch. 11.15 (amlegal). The Board of Supervisors amended the Cannabis Business Regulatory Program on December 10, 2024 (effective January 9, 2025) and on February 25, 2025 adopted the cultivation-tax exemption through December 2026, with the tax-ordinance amendments taking effect March 27, 2025 (same source).

The Hollister retail pathway is city-administered under Hollister Municipal Code, with a 5% gross-sales tax on dispensaries stacked on the 15% state excise + 7.25% state sales tax for a 27%+ effective retail-tax burden at the register (SanBenito.com · City page). Hollister permits retail (adult-use + medicinal), cultivation, testing, distribution, and delivery — concentrated in the city’s industrial zones on the east side.

Compliance in San Benito sits at the intersection of the Central Coast Regional Water Quality Control Board (Region 3), the San Benito County Water District (SGMA implementation), and the San Andreas Fault seismic overlay for facility siting. Enforcement is coordinated between City of Hollister PD, the San Benito County Sheriff, UNET, DCC investigators, and the District Attorney — with a posture defined by the Silver Creek 3,354-plant eradication (2016) and the Ladd Ln 200-lb abatement (2018). County testing, distribution, and compliance infrastructure is thin — most Hollister operators coordinate product movement and testing with Monterey or Santa Clara facilities an hour or more away.

By the numbers

San Benito,
quantified.

Figures sourced from the San Benito County Cannabis Regulatory Program, Ords. 1036 / 1040, and SanBenito.com coverage of Hollister’s first dispensary. Verify counts with the Cannabis Regulatory Program directly.

1
Licensed dispensary (Hollister)
Higher Level of Care Hollister Inc. at 1802 Shelton Dr — first adult-use retailer in the county (BenitoLink).
5%
Hollister dispensary gross-sales tax
City-level tax on retail — stacks on top of 15% state excise + 7.25% state sales tax for a 27%+ effective retail stack.
Dec 2026
Cultivation-tax exemption sunset
County cultivation tax suspended/exempted through December 2026 (effective March 27, 2025, per Ord. amendment).
3
Core cannabis ordinances
Ch. 7.02 (Business), Ch. 19.43 (Land Use), Art. V (Business Activities Tax) — Ords. 1036 and 1040.
Program history

The long arc of
San Benito cannabis.

Seven inflection points that shaped the county’s program — from the 2016 Silver Creek eradication through the March 2025 cultivation-tax exemption and the county’s first licensed dispensary.

2016

Prop 64 drafting

State Proposition 64 passage prompts county regulatory drafting. Hemp entities separately scoped under Ch. 7.04 (Ord. 1005).

Jun 22 2016

Silver Creek eradication

3,354 plants seized from an illegal Silver Creek grow site, with oil/gasoline contamination along the creek. The template for county enforcement posture on unlicensed cultivation.

Feb 2018

Ladd Ln abatement

200 lb of plants seized at Ladd Ln via coordinated Sheriff / UNET / Hollister PD abatement warrant.

2020–2022

Hollister approves adult-use

Hollister City Council approves adult-use commercial cannabis framework. Higher Level of Care secures the first permit.

Dec 10 2024

BOS program amendments

Board of Supervisors amends the Cannabis Business Regulatory Program (County Cannabis Program), effective January 9, 2025.

Feb 25 2025

Cultivation-tax exemption adopted

BOS adopts cultivation-tax exemption through December 2026 (same source). Tax-ordinance amendments take effect March 27, 2025.

Dec 2026

Exemption sunsets

Scheduled sunset of the cultivation-tax exemption. Operators planning past that date face returning base rates — positioning and reconciliation are 2026-priority work.

Program composition

Hollister retail,
unincorporated cultivation.

San Benito County does not publish a type-by-type active-license count. The qualitative composition below reflects the Ch. 7.02 / 19.43 permitted activities, the Hollister retail footprint, and the Cannabis Regulatory Program roster. Cross-reference with the DCC Unified License Search filtered to San Benito.

Widths are qualitative structure, not published proportions. Type-by-type counts are available via the DCC Unified License Search filtered to San Benito County.

Cities in San Benito County

Where cannabis is
allowed locally.

Every San Benito County city sets its own cannabis ordinance. These are the active programs — click through for each city’s local pathway, zoning map, and tax rates.

All cannabis-permitting cities in San Benito County

Permit pipeline

The San Benito pipeline,
in four numbers.

San Benito County does not publish median-days-to-issuance or first-pass completeness rates. These are the Ch. 7.02 / Ch. 19.43 / Art. V constants operators plan around — from the County ordinance roster.

2
Required instruments (unincorp)
Regulatory Permit + Use Permit under Ch. 7.02 and Ch. 19.43 (Ord. 1036). Either alone is incomplete.
0
Unincorporated dispensaries allowed
The unincorporated area prohibits dispensaries — Hollister city is the only retail venue.
Mar 27 2025
Tax-exemption effective date
Art. V Business Activities Tax amendments effective — cultivation tax suspended through Dec 2026.
27%+
Hollister retail tax stack
5% city + 15% state excise + 7.25% state sales tax = 27%+ effective at-register retail burden.
How San Benito stacks up

San Benito vs
the rest of California.

San Benito Statewide (CA)
Unincorporated dispensary allowance
ProhibitedVaries — many counties allow
County cultivation tax (2025–26)
Suspended (thru Dec 2026)Varies by county
Hollister retail tax stack
27%+ effective~22–30% typical CA retail stack
Licensed county dispensaries
1 (Hollister)~1,200 CA statewide

Sources: County ordinances, SanBenito.com, San Benito Live. Statewide retail count is DCC aggregate; state excise rate is 15% and base state sales tax is 7.25%.

Named in San Benito

The operators anchoring
Hollister cannabis.

A short list of Hollister and San Benito-based operators that anchor the county’s licensed footprint.

First licensed dispensary

Higher Level of Care Hollister Inc.

1802 Shelton Dr, Hollister — the first adult-use dispensary in the county. Permit award covered in BenitoLink.

Brand affiliates

Genesis Marketplace

Higher Level brand-affiliate retailer — Leafly listing.

Cultivation / manufacturing

Unincorporated operators

Cultivation + manufacturing operators permitted in the unincorporated area under Ch. 7.02 & Ch. 19.43 — detailed roster maintained by the County Cannabis Regulatory Program.

Enforcement posture

Sheriff / UNET / Hollister PD

Coordinated unlicensed-market enforcement team. Template actions: Silver Creek 3,354-plant eradication and Ladd Ln 200-lb abatement.

Ready when you are

San Benito regulatory work,
handled start to finish.

From Ch. 7.02 Regulatory Permit through DCC issuance, through the March 2025 cultivation-tax exemption positioning, to 24-hour response on any Sheriff / UNET / Hollister PD enforcement action — your San Benito regulatory lift runs through one named team.

Get started today No fee, no obligation. You leave with a named next step either way.
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