In California, calls for a tax revolt grow louder
- Following a spate of burglaries targeting dispensaries, San Francisco supervisors approved an ordinance to suspend the city’s new cannabis business tax through the end of 2022.
- The state’s Department of Cannabis Control proposed emergency license fee waivers to qualified equity businesses.
Still frustrations continue to mount and some businesses are threatening a “California Weed Party,” inspired by the Boston Tea Party.
East Bay Times
- Rather than dump the state’s excess biomass into Oakland harbor, they’re threatening to withhold $1.3B in state taxes.
- “This is the response you get when you feel like you’re being taxed and you don’t have representation,” said Jerred Kiloh, who owns The Higher Path dispensary and heads the United Cannabis Business Association trade group. “This is the worst it’s ever been.”
- Businesses are paying an effective tax rate that can easily top 45%. And the (untaxed) illegal market remains twice as large as the $3B+ legal market.
- The hardships appear to be taking their toll with the number of state licenses shrinking from about 16,000 in 2018 to 10,000 this year.
- Attorney Hilary Bricken said refusing to pay taxes would “violate all kinds of tax laws and regulations” and could lead to suspended licenses.