California Officials Selling Seized Bongs to Cover Unpaid Cannabis Taxes

Not your usual tax headline

Ganjapreneur report

California officials auctioned off personal property from unlicensed and tax-delinquent cannabis dispensaries, marking a new strategy in the state’s efforts to regulate the cannabis industry and recover unpaid taxes, amid broader enforcement actions against the illicit market.

Full story after the jump.

California police and tax collection officials recently sold at auction personal property seized during law enforcement raids on unlicensed and tax-delinquent cannabis dispensaries. First reported by the LA Times, the auctions seized included items such as glass bongs and pipes, furniture, and electronics typical to modern dispensaries.The products were initially seized while executing search warrants against multiple Los Angeles-based cannabis dispensaries. Of the ten retailers raided, only one was actually licensed by the state, and together, the businesses reportedly owed more than $14.4 million in unpaid taxes.

Notably, the auctions last week marked the first time California law enforcement publicly auctioned off personal property that was seized from a cannabis business. Previously, officials had only auctioned off the commercial property recovered from similar seizures in Whittier and Compton, the report said.

“Seizing and auctioning property from cannabis businesses that evade the law is a tool to recover the taxes owed to the state.” — Nick Maduros, Director of the California Department of Tax and Fee Administration, via the LA Times

The items from each location were grouped into lots and if potential purchasers were interested in a specific item, they were required to bid on the entire lot.