Whoa, How Much? CA’s Canabis Industry Owes A QuarterBillion Dollars In Back Taxes

Whoa, How Much? CA's Canabis Industry Owes A QuarterBillion Dollars In Back Taxes

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The California marijuana industry owes the state a quarter of a billion dollars in unpaid taxes.

According to a Green Market report, the hemp industry "cumulatively received $250,410,890 in unpaid cannabis sales and taxes, out of $4.4 billion in total taxes paid."

The report includes data from the California Department of Revenue and Revenue (CDTFA).

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Tax attorney Regina Unegowski said the amount owed to marijuana operators "could easily double when fines and interest are factored in."

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It is not clear from this data how much or which marijuana companies in the Golden State owe CDTFA money. December

According to the Green Market Report, San Francisco Bay Area grower Grizzly Peak "owes the state $13.5 million even though the principal was only $6.8 million in taxes."

Jared Killa , president of the United Hemp Business Association (UCBA), stated that the industry's tax arrears and "future taxes" could exceed $1 billion.

“If (CDTFA) has that much debt… it’s even worse than the licensing side of the debt bubble,” he added.

House Bill 195, which Gov. Gavin Newsom signed into law earlier this year, removes the state marijuana tax and shifts the excise tax from distributors to retailers from January 2023.

Good Farmers Great Neighbors and Precision Advocacy kiosk sales account for three-quarters of all weed sales in the Golden State, according to a recent study by the Reason Foundation.

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Illicit sales are a concern for some big players in the California market such as Curaleaf Holdings, Inc. (OTCQX: CURLF), Green Thumb Industries (OTCQX: GTBIF), Trulieve Cannabis (OTCQX: VRNOF), Columbia Care Inc. (OTCMKTS: CCHWF), Ascend Wellness Holdings, Inc. (OTCQX: AAWH) (CSE: AAWH.U), TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) and Jushi Holdings Inc. (OTC: JUSHF).

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Photo of John Tyson via Unsplash

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