San Diego Union-Tribune: October 22, 2020 – San Diego filed its first lawsuit based on a failure to pay the city’s cannabis tax, a revenue stream the city expects to reach nearly $30 million over five years.
The suit was filed against Grizzly Peak Farms for failure to pay tax on cannabis products the company delivered to dispensaries within the city. San Diego officials say the company owes nearly $10,000.
The owner of Grizzly Peak said that the company’s failure to pay was an oversight resulting from confusion about San Diego’s cannabis tax extending beyond businesses selling and cultivating cannabis within the city. leaders in the San Diego cannabis business community seem to agree that taxing out-of-town suppliers is a contested issue. Grizzly Peak seems to be the first to fail to pay.
According to attorney McElfresh, the San Diego cannabis tax law has some confusing elements, partly because it was modeled on legislation from other cities. Read the entire article here.
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