Connect with us

California

Cannabis businesses owe California $732 million in taxes

Published

on

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.

Advertisement

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.

Advertisement

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.

Advertisement



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

California

California man enters US 95, dies in crash southeast of Boulder City, Nevada State Police says

Published

on

California man enters US 95, dies in crash southeast of Boulder City, Nevada State Police says


LAS VEGAS, Nev. (FOX5) – A California man died in a crash Friday southwest of Boulder City, Nevada State Police said.

Police sent details to FOX5 on a fatal crash that happened in the area of the US 95 and mile marker 4 in Clark County April 25 around 9:29 p.m. Police said this is about 6 miles southeast of Boulder City.

Police said that the driver of a 2005 GMC Yukon traveled southbound on US 95 in the far right travel lane. At this moment, a pedestrian entered the US 95 from the center median into the path of the driver.

The pedestrian was identified by police as Julian Gusan, a 34-year-old from Redlands, California. Arriving officers at the scene said he died on scene from his injuries.

Advertisement

He was struck by the GMC’s front, and according to police, the driver stayed on scene for investigating officers.

“The investigation is being conducted by the Nevada State Police Highway Patrol – Southern Command Multidisciplinary Investigation & Reconstruction Team,” police said. “2024 Year to date: The Nevada State Police Highway Patrol Southern Command has investigated 21 fatal crashes resulting in 26 fatalities.”

Police said this year’s fatalities data is preliminary and may change/be updated based on final investigation and coroner reports.



Source link

Advertisement
Continue Reading

California

Map: School Fire west of Grapevine, biggest California wildfire this year

Published

on

Map: School Fire west of Grapevine, biggest California wildfire this year


A wind-whipped wildfire in Kern County quickly passed 1,000 acres on Thursday afternoon and prompted an evacuation warning.

The School Fire was reported at 1:41 p.m. east of the city of Maricopa. By 3 p.m. it had burned 1,000 acres, and an evacuation warning was issued for a rural area south of Highway 166.

Within three hours, forward progress had been stopped and the warning was lifted, said a report from the California Department of Forestry and Fire Protection.

Advertisement

As of 7 a.m. Friday, May 3, the burned area was at 1,479 acres (2.3 square miles) and containment was 50%, CalFire said. The cause was under investigation.

It was the largest of the 10 wildfires logged by CalFire so far this year. Last week’s Refuge Fire burned 475 acres in Fresno County; an Inyo County fire in early April destroyed four structures and forced the evacuation of the community of Cartago.



Source link

Continue Reading

California

A Rabbi's Prayer Poem for California – San Diego Jewish World

Published

on

A Rabbi's Prayer Poem for California – San Diego Jewish World


Rabbi Michael Leo Samuel

By Rabbi Michael Leo Samuel

CHULA VISTA, California — Here is a prayer I wrote for National Prayer Day that I delivered Thursday morning, May 2.

Hear the call, California, let’s rise and unite,

In our land of splendor,  from plight to light.

Advertisement

From redwood shadows to shimmering shore,

Let’s build a future worth striving for.

“Listen,” resounds from valley to peak,

Affordable homes for all who seek.

In cities bustling and towns serene,

Advertisement

Let fairness dwell, let grace be seen.

Against the shadows of bigotry and hate,

Stand strong for love, let it resonate.

From San Diego’s warmth to the Bay’s cool mist,

Inclusion and safety top our list.

Advertisement

Housing that’s affordable, a roof for each head,

In neighborhoods where no one fears to tread.

From LA’s sprawl to Sacramento’s streets,

Let’s secure a haven where hope meets.

In tech’s grand hub, let innovation lead,

Advertisement

To solutions where compassion’s creed.

May Silicon Valley’s minds conceive,

New ways for the Golden State to achieve.

Let California’s dream be vast and bold,

A tale of kindness and courage told.

Advertisement

With every “shema,” let’s understand,

A call to act, for the future we planned.

Hear the call of the surf, the whispering pines,

For a state where every star aligns.

A haven of peace, where all are free,

Advertisement

California, let this our legacy be.

*
Rabbi Michael Leo Samuel is spiritual leader of Temple Beth Shalom in Chula Vista.  He may be contacted via michael.samuel@sdjewishworld.com

 



Source link

Advertisement
Continue Reading
Advertisement

Trending