California
Cannabis businesses owe California $732 million in taxes
California’s cannabis is deep in the red, but unfortunately for the state, most of those debtors are already out of business.
That’s according to a new report from Greenwave Advisors that determined that the state of California is owed approximately $732 million in cannabis sales & use, excise, and cultivation taxes, but about 72% of the companies that owe simply don’t exist anymore.
Greenwave said it reached that conclusion by analyzing data on delinquent taxes provided by the California Department of Tax and Fee Administration. In addition to the uncollected taxes, the CDTFA said it also assessed $173 million in taxes on unlicensed sales, which Greenwave says translates to $1.2 billion in sales through unlicensed channels, or a quarter of the total market.
California reported $4.4 billion in sales in 2023, a 16% increase over 2022’s $3.8 billion.
Distributors also likely owe the state $1.2 billion in taxes, which Greenwave said is higher than its previous estimate of $1 billion.
In September, one of California’s largest distributors Herbl went out of business. At the time Green Market Report wrote that vendors complained about not getting paid by the distributor, which in turn was allegedly being stiffed by strapped dispensaries after taking inventory. Herbl filed several collections claims in the Los Angeles County Superior Court against operators.
Greenwave surmises that if the distributors aren’t getting paid, then the taxes likely won’t get paid either.
High and higher taxes
According to Cova Software, “Between California’s excise tax, regular sales tax, and local business tax, adult-use customers are paying anywhere between 28% and 40% cannabis retail taxes on every purchase.”
The main excise tax of 15% is set to increase to 19% in 2025. It isn’t hard to imagine that if companies can’t pay the taxes they have now, increasing them will only amplify the problem.
Tax man cometh
If companies don’t pay the tax bill and the accompanying 50% penalty for late or missed payments, their properties can be seized. But the results of those actions often fall far short of the actual debt.
For example, the CDTFA held an auction in February to sell property seized from 10 cannabis businesses in Los Angeles. The department noted on its website that the items were seized as a result of search warrants served to collect taxes owed by 10 cannabis businesses. Nine were illegal businesses, and one was a legal dispensary with unpaid taxes.
That auction generated only $2,075 against the unpaid $14.4 million in taxes.
In April, the state announced it had also seized products from the Kush Spot and Verlton Glaspie, which does business as Whittiers Cure Cannabis Dispensary, for unpaid taxes.
“Seizing and auctioning property from cannabis businesses that evade the law is a tool to recover the taxes owed to the state,” said CDTFA Director Nick Maduros.
California
California Upsets No. 14 Louisville Cardinals in Overtime Thriller
California traveled to Louisville, Ky., in search of a statement win against the No. 14 Louisville Cardinals (7-2, 4-2 ACC), and the Golden Bears (6-4, 3-3 ACC) pulled out all the stops Saturday evening to earn the upset, 29-26, in overtime.
On the first play of the game, California quarterback Jaron-Keawe Sagapolutele threw a lateral to his slot receiver, Jacob de Jesus, who then connected with Trond Grizzell on a deep 27-yard pass. While the Golden Bears would not score on the drive, their fast and aggressive play early on silenced much of the 51,381 in attendance.
California out-gained Louisville in total yards and offensive plays throughout the entire game. The Golden Bears never once trailed the nationally ranked Cardinals by more than one score, despite entering the game as three-score underdogs, according to many sportsbooks’ odds.
Sagapolutele earned the game-winning touchdown in overtime with a nail-biting throw on fourth down. California’s first-year signal-caller found his favorite target of the evening, de Jesus, who brought in the three-yard reception to close out the game.
De Jesus had a game-high 157 receiving yards and hauled in 16 of 23 passes in which he was targeted. His 16 receptions tie Geoff McArthur’s school record for receptions by a receiver in a single game.
In his post-game press conference, Louisville head coach Jeff Brohm praised de Jesus, calling him California’s “best player.”
“… Even at the end, to allow their best player to be one-on-one for an easy throw in the corner… you know, we need to coach better; we need to play better,” Coach Brohm said.
Sagapolutele completed 30 out of 47 passes attempted and racked up 323 passing yards—both career highs. In addition to the game-decider, the quarterback threw his first touchdown of the game in the first quarter, a 20-yard bomb to tight end Landon Morris.
The last time California beat a nationally ranked, top-25 team was on Dec. 5, 2020, when the Golden Bears upset the No. 20 Oregon Ducks, 21-17, for their first win in the 2020 college football season.
With the win, California is now eligible for a post-season bowl bid.
California
Mom of missing California girl arrested on unrelated charges of daughter’s disappearance
CALIFORNIA (AZFamily) — The mother of a missing California girl has been arrested on charges unrelated to her daughter’s disappearance, but the child still has yet to be found.
FBI Los Angeles announced that 40-year-old Ashlee Buzzard was taken into custody on Friday. However, the whereabouts of her daughter, 9-year-old Melodee Buzzard, remain unknown.
Melodee and Ashlee reportedly went on a road trip as far as Nebraska in a rental white Chevrolet Malibu last month, detectives say. Federal authorities say Melodee and her mother may have passed through Interstate 15 in Littlefield, Arizona while on the drive.
Detectives say Ashlee was arrested for a recent incident where she allegedly prevented a victim from leaving against their will. Authorities say this crime is not connected to the ongoing search for Melodee.
“Although this arrest occurred during the course of the missing person investigation, it is not directly related to Melodee’s disappearance. Sheriff’s detectives remain fully focused on locating Melodee and confirming her safety,” FBI Los Angeles said in a statement.
Ashlee was booked for a felony charge of false imprisonment. She is being held at a jail in Santa Maria, California, with bail set at $100,000.
Melodee was photographed at a rental car agency on Oct. 7, wearing a wig and a hoodie.
The young girl has brown eyes and brown, curly hair that may be straightened or covered with a dark wig. She is between four and four-and-a-half feet tall, weighing between 60 and 100 pounds.
Anyone with information about Melodee is asked to contact detectives at (805) 681-4150 or submit an anonymous tip at (805) 681-4171.
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California
Home Ronald and Nancy Reagan commissioned as California Governor’s Mansion hits the market
A Carmichael home that was originally designed to be California’s official Governor’s Mansion is now up for sale.
The mid-century modern home, located at 2300 California Avenue, was built in 1975 after being commissioned by Ronald and Nancy Reagan to replace the aging governor’s mansion at 16th and H streets in Sacramento.
By the time construction was finished, Reagan had already left office. His successor, Jerry Brown, declined to move in – famously dismissing the Carmichael residence as the “Taj Mahal.”
No California governor ever called the mansion home, with the property being sold to a private citizen in 1983.
A time capsule installed at the property recognizes the home’s history. The capsule is scheduled to be opened on July 4, 2076.
Now, as of Oct. 16, the Carmichael home has hit the market with a list price of $7.5 million. The property spans 4.3 acres that overlook the American River, with the home featuring a total of 8 bedrooms, 8 bathrooms, and 2 half bathrooms.
“You can really feel the history here,” said realtor Hattie Coleman in a statement.
The Carmichael home last sold in 2004 for $4.1 million.
The East Sacramento home Reagan lived in for much of his time as California governor was designated as a historic landmark in 2024.
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