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Attorney McElfresh on San Diego’s First Cannabis Tax Lawsuit

Oct 23 2020, by Jessica McElfresh in Marijuana Business, Media Coverage

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.

Questions About California’s Cannabis Industry? Contact McElfresh Law

McElfresh Law provides advice and legal counsel to marijuana-related businesses throughout California about licensing, permitting, compliance, and lawfully operating a cannabis business.

As a highly experienced and passionate marijuana advocate, California cannabis lawyer Jessica McElfresh has helped numerous businesses in the budding cannabis industry. For a consultation, contact McElfresh Law today at 858-756-7107 to schedule an appointment.