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
‘Explosive diarrhea’ parasite surfaces in California as health officials fear statewide surge
A parasite that causes bouts of “explosive diarrhea” has surfaced in California as a fast-growing outbreak sweeps across the US — with health officials warning the state’s official case count likely captures only a fraction of the true number of infections.
State data show between that between 1 and 10 California cases have been linked to a broader statewide outbreak as authorities continue tracking the spread.
But officials say many infections are never confirmed because some people recover without seeking medical care or getting tested, the parasite requires specialized laboratory testing to detect, and confirmed cases can take about six weeks to be reported.
Most of California’s infections have been tied to international travel rather than the expanding multistate outbreak.
Across the country, at least 2,944 people in 32 states have been sickened, with Michigan bearing the brunt of the outbreak.
The state has reported 1,562 infections, roughly 31 times the approximately 50 cases it typically records in a year, and at least 44 people have been hospitalized.
Investigators are examining whether contaminated food is driving the spike, but they have not identified a specific produce item, supplier or grower responsible for the outbreak.
Cyclospora, the parasite behind the illness known as cyclosporiasis, is typically spread through food or water contaminated with feces.
Previous outbreaks have been traced to imported fresh produce, including raspberries, basil, snow peas, mesclun lettuce and cilantro.
According to the CDC, the illness can cause severe gastrointestinal symptoms, including watery diarrhea “with frequent and sometimes explosive bowel movements.”
Other symptoms include nausea, vomiting, abdominal pain, bloating, fatigue, loss of appetite and weight loss.
Symptoms usually begin about one week after infection, although they can appear anywhere from two days to two weeks later, making it more difficult for investigators to determine where someone was exposed.
The CDC recommends treating cyclosporiasis with the antibiotic trimethoprim-sulfamethoxazole, commonly sold as Bactrim, Septra and Cotrim, over a 10-day course.
As investigators continue searching for the source of the outbreak, some Taco Bell restaurants have temporarily removed fresh ingredients from their menus as a precaution.
Download The California Post App, follow us on social, and subscribe to our newsletters
California Post News: Facebook, Instagram, TikTok, X, YouTube, WhatsApp, LinkedIn
California Post Sports Facebook, Instagram, TikTok, YouTube, X
California Post Opinion
California Post Newsletters: Sign up here!
California Post App: Download here!
Home delivery: Sign up here!
Page Six Hollywood: Sign up here!
Locations, including some in Metro Detroit, posted notices telling customers they were temporarily unable to serve lettuce, cilantro, onions, pico de gallo and guacamole because of a nationwide recall while health officials respond to the increase in cyclosporiasis cases.
Restaurants in outbreak hot spots, including Michigan and Ohio, have also pulled raw lettuce, onions, cilantro-onion mix, pico de gallo and guacamole from their menus.
However, neither the CDC nor the Food and Drug Administration has linked Taco Bell to any reported illnesses.
California
Disneyland turns to cheaper evening passes and the internet speculation explodes
If you visit Disneyland with any frequency, a discount from the usual price of more than $100 a day would feel like a blessing.
However, almost as soon as Disney recently offered a rare chance to purchase limited evening passes to its two Southern California parks at about half of the regular cost, the online speculation among Disney enthusiasts behind the company’s strategy spiked. It was no surprise that the lower-priced tickets sold out in about a week.
Some fans referred to the five-hour ticket as a “recession” indicator on social media or as a way to “capture random stragglers.”
Others believed the ticket offered fireworks enthusiasts an opportunity to catch a nighttime spectacular, while one person said the pass allowed visitors to partake in other Southern California activities before finishing their evening at Disneyland.
Buyers of the pass are first set to attend the parks this Sunday, with dates extending until August.
Disneyland officials brush off the speculation, saying the ticket sale is business as usual. Fortunately for us, industry insider Dennis Speigel offered some analysis behind the move.
Let’s jump into the offer and his thoughts on the deal.
All about the ticket
Late last month, Disneyland offered a one-park evening pass for $59 to Disneyland or California Adventure. The ticket is good from Sundays to Wednesdays, starting this Sunday until Aug. 5.
California Adventure would allow evening patrons in at 5 p.m. until closing at 10 p.m. and Disneyland at 7 p.m. until closing at midnight.
A park reservation was still required for evening passes.
The tickets became available June 30 and sold out by July 6, according to a Disneyland spokesperson. Disneyland officials declined to say how many tickets were sold.
What’s Disneyland’s rationale?
The ticket offering is not all that rare.
Similar opportunities began as far back as 1957 with Disneyland date nights admission running from 5 p.m. to 1 a.m, a park spokesperson said.
“Our goal is to provide guests with a variety of limited-time ticket offers throughout the year — this being just one example of that,” a Disneyland spokesperson said.
Softer than a dole whip
Speigel, founder and chief executive of Cincinnati-based International Theme Park Services, Inc., a theme park consulting firm, said theme parks, ranging from small, regional locales to international destinations are struggling with a “softness” in admission demand that began in April but became more acute in June.
That slump at Disney and Universal Studios properties nationwide, Speigel said in a call with The Times, is due to three primary factors: the economy, weather and the Iranian War.
“There’s a nervousness from visitors, a lack of understanding of what to expect because of the war and economy,” he said. “We saw something like that last year driven by tariffs with soaring gas prices, and we monitored how people started moving back on their spending.”
Visitors still want deals
To counter that softness, Disney is turning to discounts, hoping to kindle interest, Speigel speculated.
“They understand their guests are in a crucible, and this drives the decision to discount,” he said. “People still want their escapes; that doesn’t go down. They just want to pay less to escape.”
Disney’s evening pass is also a shrewd offer because it aims to attract another type of guest: budget-minded locals who might be enticed by $59, Speigel said.
“It’s a smart attempt on Disney’s part,” Speigel said. “It moves in the local people who aren’t the season pass holders or tourists, and it fills the park. That’s what parks are looking to do right now.”
The week’s biggest stories
(Etienne Laurent / For the Times)
Boyle Heights fire
Two graduation traumas
Beach takeovers
Science and technology
What else is going on
Must-reads
Other meaty reads
For your downtime
(Stephanie Breijo / Los Angeles Times)
Going out
Staying in
L.A. Timeless
A selection of the very best reads from The Times’ 143-year archive.
Have a great day, from the Essential California team
Hailey Branson-Potts, staff reporter
Hugo Martín, assistant editor, fast break desk
Kevinisha Walker, multiplatform editor
Andrew J. Campa, weekend writer
Karim Doumar, head of newsletters
How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com. Check our top stories, topics and the latest articles on latimes.com.
California
Amber Alert issued for 3-year-old out of California City in Kern County
CALIFORNIA CITY, Calif. (KABC) — An Amber Alert was issued Friday by the California Highway Patrol for a 3-year-old child out of California City believed to be in imminent danger.
Emaria Peel, 3, was last seen Friday at about 7:17 p.m. in the area of Redwood Boulevard and 83rd Street in California City, according to police.
Authorities believe 31-year-old Charnay Mclin took Emaria. Investigators have not yet said what relationship, if any, Mclin has to the child.
The suspect was described as being 5 feet 9 inches tall, 185 pounds, with black hair and brown eyes.
The child was described as being 1 foot 6 inches, 20 pounds, with black hair and brown eyes.
Police believe they’re traveling in a gold-colored 2021 Kia Sorento with the California license plate: 36095DV
Mclin is considered armed and dangerous. Authorities wants anyone who sees them to call 911.
No further details were immediately known.
Copyright © 2026 KABC Television, LLC. All rights reserved.
-
Kansas1 minute agoMissouri homebuilders report housing construction slump — but not in Kansas City
-
Kentucky6 minutes agoKentucky Wildcats News: MLB Draft Day 2
-
Louisiana13 minutes agoCheck out the Outdoors calendar for fishing events
-
Maine16 minutes agoMaine Democrats seek a Platner-like change agent — ‘without the baggage’
-
Maryland21 minutes agoBusiness Leader Key to Maryland Buying Preakness Rights
-
Michigan29 minutes agoSturgis closure may be ‘first of more’ for Michigan rural hospitals
-
Massachusetts31 minutes agoCommentary: Massachusetts needs a journalist shield law
-
Minnesota36 minutes agoMinnesota was center of immigration enforcement. Here’s how its playing out legally.