We need to ensure we measure out our marijuana honestly to clients. Scales do go out of adjustment occasionally, and we should check them for accuracy before we use them. It is just good sense to stick to promises made in business – if we don’t, our customers go their own way. It also makes sense to pay our taxes.
The Deal the Medical Marijuana Industry has with California
Legal marijuana has its fans, and its detractors. The majority of the people are as usual in the middle. The campaign for legal marijuana did not succeed because they suddenly became marijuana missionaries. It won because the proposal to legalize, and tax the product made economic sense in these ways:
- The police could focus on more pressing matters like fighting real crime
- Medical marijuana tax would cover the cost of administering the program
- There would be money left over for publicity about using marijuana wisely
Thus, it is essential that medical marijuana dispensaries pay their taxes as directed. We still have a long way to go to freedom in the minds of the federal administration.
Signs the Industry May not Be Honoring the Deal
We were concerned when we read this article in the The Cannifornian last Saturday. In it, Brooke Staggs reveals that thirteen medical marijuana dispensaries owe $12 million in unpaid state taxes. She cites the Board of Equalization as her source so we need to take this seriously.
To place things in perspective, the Board publishes a list of the Top 500 delinquent taxpayers every quarter as part of a name-and-shame campaign. Having thirteen medical marijuana dispensaries in the same room as Staggs’ list of assorted ‘car dealers, fast food franchisees, contractors and gas station owners’ is hardly the space we want to be in. Unless we want judgement according to the company we keep.
Are We Still an Underground Industry Then?
Diane Harkey, Southern California member of the Board of Equalization thinks we probably still are. Although she is at pains to say this may be due more to ignorance than intent. Several of the dispensaries fingered are old school pioneers. Some are still operating, while others have closed shop.
Harkey thinks the root cause could be back-of-cigarette-packet accounting, and a cowboy approach to good business practice. This may be the tip of the iceberg. She estimates only about 25% of dispensaries are fully compliant. It is time the California marihuana industry got its house in order. There is some tough legislation in the pipeline with stiff penalties.