Medical Pot Banking Dilemma

Recordnet.com:  “Dispensaries run into difficulties dealing with financial institutions. Stockton and other local government agencies in California require medical marijuana dispensaries to promptly deposit cash into bank accounts. The federal government, meanwhile, is putting pressure on financial institutions to make that more difficult.  Medical marijuana dispensaries throughout the state have been getting letters in recent months from their banks telling them their accounts are frozen or closed.”

By |2012-05-12T15:25:15-07:00April 4th, 2011|Banking Issues, California News, Federal Dispensary Attacks|Comments Off on Medical Pot Banking Dilemma

IRS tells California Medical Marijuana Dispensary it Owes Millions in Unpaid Taxes

Marin Independent Journal:  “The Internal Revenue Service has notified the Marin Alliance for Medical Marijuana in Fairfax that it owes millions of dollars in unpaid back taxes, according to the alliance’s founder and director, Lynnette Shaw.  Shaw said the IRS audited the alliance’s tax returns for 2008 and 2009 and disallowed all of its business deductions. She said that although dispensaries throughout the state are being audited by the IRS, the alliance is the first to be told it can’t deduct business expenses.  ‘Every dispensary in the nation, past, present and future is dead if this is upheld,’ Shaw said. . . . Shaw said the IRS disallowed her deductions — for buying marijuana, hiring employees, securing office space and more — based on section 280E of the federal tax code, which states that no deduction shall be allowed for any business trafficking in controlled substances.”

This story is a wake-up call and warning to all prospective Arizona medical marijuana dispensaries.  Despite the CHAMPS case, which was decided in the U.S. Tax Court, the IRS apparently is disallowing ALL deductions of medical marijuana dispensaries.  Prospective Arizona medical marijuana dispensaries should consider this fact when doing budgets and financial projections for their dispensary businesses.  See “Californians Helping to Alleviate Medical Problems, Inc. v. Commissioner of Internal Revenue.”

By |2019-06-14T08:24:54-07:00March 18th, 2011|California News, Federal Dispensary Attacks, Tax Issues|Comments Off on IRS tells California Medical Marijuana Dispensary it Owes Millions in Unpaid Taxes

2 West Hollywood Medical Marijuana Dispensaries Raided by Federal Agents

Los Angeles Times:  “Federal drug enforcement agents Tuesday raided two West Hollywood medical marijuana stores in the first such action in the city since the Obama administration decided two years ago to take a hands-off approach to dispensaries that abide by state laws. The dispensaries — Alternative Herbal Health Services and Zen Healing on Santa Monica Boulevard — are among four that the city has authorized to operate. . . . The DEA raided five of six dispensaries in West Hollywood in 2007, but has left the city’s stores alone since then.”

By |2012-05-12T15:26:27-07:00March 17th, 2011|California News, Federal Dispensary Attacks, Marijuana Crimes, Video|Comments Off on 2 West Hollywood Medical Marijuana Dispensaries Raided by Federal Agents

California wants Marijuana Shops to Pay Back Taxes

The California State Board of Equalization is auditing California medical marijuana dispensaries and ordering many to pay sales tax on sales of marijuana products that the businesses did not collect from patients or pay to the state.   The Berkeley Patients Group did not start collecting and paying sales tax until 2007 and now the “State Board of Equalization  is ordering the Berkeley facility to pay $6.4 million in back taxes and interest on $51 million in pot sales between 2004 and 2007.”

By |2019-06-14T08:24:53-07:00March 10th, 2011|California News|Comments Off on California wants Marijuana Shops to Pay Back Taxes

Pot Dispensaries Turn Against L.A.’s Marijuana Tax Proposal

Los Angeles Times:  “Measure M on Tuesday’s ballot would add a 5% marijuana tax to sales at pot dispensaries. Owners of the collectives once supported the idea but are now angry about the upcoming lottery to decide which ones can remain open. . .. Measure M would require the city’s dispensaries to pay a 5% business tax on gross receipts, which is 10 times more than the city’s highest tax.”

By |2019-06-14T08:24:53-07:00March 5th, 2011|California News, Stories & Articles|Comments Off on Pot Dispensaries Turn Against L.A.’s Marijuana Tax Proposal

Medical Marijuana Cultivation Plan Antagonizes Feds in Oakland — and Arizona’s Plan is Similar

Ray Stern, Phoenix New Times:  “A plan to oversee medical marijuana cultivation centers in Oakland drew fire from the feds last week — yet the plan is similar to that being developed in Arizona.  The way we read it, the February 1 letter from Melinda Haag, U.S. Attorney for California’s Northern District, (see below), to the city of Oakland could signal possible problems for Arizona’s medical pot program,”

By |2015-04-06T18:50:17-07:00February 8th, 2011|California News, Stories & Articles|Comments Off on Medical Marijuana Cultivation Plan Antagonizes Feds in Oakland — and Arizona’s Plan is Similar

Medical Marijuana Raid in San Luis Obispo County Raises Questions

San Luis Obispo Tribune: “on Dec. 27, 45 to 50 officers started serving the search warrants over three days at seven locations. Fifteen people were arrested on various allegations of possessing and selling marijuana. . . . Law enforcement officials say the arrestees were selling and transporting marijuana illegally throughout San Luis Obispo, Santa Barbara and Monterey counties, in violation of the state’s Compassionate Use Act and Medical Marijuana Program.   [The defendants] operated collectives. . . . groups that form to cultivate marijuana for medical purposes for patient and caregiver members. They should only provide a means for facilitating or coordinating transactions between members — and should not purchase marijuana from, or sell to, nonmembers.  They also cannot make a profit.”

By |2017-02-11T17:26:06-07:00January 9th, 2011|California News, Marijuana Crimes|Comments Off on Medical Marijuana Raid in San Luis Obispo County Raises Questions

5 San Luis Obispo County California Medical Marijuana Delivery Services Raided & 13 People Arrested

Americans for Safe Access:  “A Narcotics Task Force (NTF) made up of local and state law enforcement agencies aggressively raided 5 collectively-run medical marijuana delivery services on Monday, Tuesday and Wednesday this week, arresting at least 13 people on felony charges and holding them on bails of up to $100,000. Several of those arrested were charged with child endangerment, after Child Protective Services (CPS) removed at least 6 children from the homes of 3 different families.”

By |2015-04-06T18:49:24-07:00December 30th, 2010|California News, Marijuana Crimes|Comments Off on 5 San Luis Obispo County California Medical Marijuana Delivery Services Raided & 13 People Arrested

Long Beach Pot Law Gets Legal Setback

Press Telegram:  “The future of Long Beach’s medical marijuana regulations – and potentially of medical marijuana throughout the state – is in question after an appeals court ruling Wednesday.  The 2nd District Court of Appeals ruled that a Los Angeles County Superior Court judge must reexamine his decision Nov. 2 upholding Long Beach’s new medical marijuana ordinance.  At issue is whether Long Beach’s issuance of permits for medical marijuana collectives is a violation of federal law, which considers marijuana an illegal drug.”

Whatever the outcome  of the case when it is reconsidered by the trial court, the losing party will surely appeal.  It appears that in the not too distant future a California appellate court will determine if federal law preempts California law.  If the appellate court answers the question in the affirmative, that could be the beginning of the end of California’s medical marijuana law and other states that have legalized medical marijuana can expect to have the same battle in their courts.

By |2017-10-07T09:54:50-07:00December 30th, 2010|California News, Legal Issues, Stories & Articles|Comments Off on Long Beach Pot Law Gets Legal Setback

12 San Luis Obispo County Residents Arrested in Investigation of Mobile Marijuana Dispensaries

San Luis Obispo Tribune:  “Twelve San Luis Obispo County residents were arrested this week after a two-month investigation into mobile marijuana dispensaries on the Central Coast.  The investigation began after law enforcement agencies learned that several people were selling marijuana through mobile dispensaries in San Luis Obispo, Santa Barbara and Monterey counties, according to a news release from the San Luis Obispo County Narcotic Task Force.”

By |2017-02-11T17:33:43-07:00December 30th, 2010|California News, Marijuana Crimes|Comments Off on 12 San Luis Obispo County Residents Arrested in Investigation of Mobile Marijuana Dispensaries

Legal Concerns Spur Oakland’s Suspension of Plan for Four Big Pot Farms

Los Angeles Times:  “Oakland —California’s most cannabis-friendly city has temporarily suspended a plan to permit and tax four large marijuana-growing facilities because of ongoing legal concerns.  The Oakland City Council voted 7 to 1 this week to send the measure back to legal staff for reworking after the city received a letter from the Alameda County district attorney”  The DA said:

“It remains an open question whether public officers or public employees who aid and abet or conspire to violate state or federal laws in furtherance of a city ordinance, are exempt from criminal liability”

By |2019-06-14T08:24:50-07:00December 24th, 2010|California News|Comments Off on Legal Concerns Spur Oakland’s Suspension of Plan for Four Big Pot Farms

Juries are Giving Pot Defendants a Pass

Los Angeles Times:  “In cases involving small amounts of marijuana, some people aren’t willing to uphold the law in court. . . . a phenomenon that prosecutors say they are increasingly mindful of as marijuana use wins growing legal and public tolerance: Some jurors may be reluctant to convict for an offense many people no longer regard as serious.  ‘It’s not on a level where it’s become a problem.  But we’ll hear, ‘I think marijuana should be legal, I’m not going to follow the law’ “

By |2019-06-14T08:24:50-07:00December 24th, 2010|California News|Comments Off on Juries are Giving Pot Defendants a Pass
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