Title: The great California cannabis experiment lurches forward
Author: LA Times
Date: 20 April 2018
Title: Weed bank proposal passes first legislative hurdle in California
Author: LA Times
Date: 18 April 2018
California would license special banks to handle billions of dollars generated by the legal marijuana market under legislation buoyed by recent comments from the Trump administration and given initial approval by state lawmakers Wednesday.
The measure gained momentum just days after President Trump indicated that his administration would not crack down on recreational marijuana in states that have voted to make it legal. Selling and growing marijuana for recreational use was legalized by California voters under a state licensing system that began Jan. 1.
Sen. Bob Hertzberg (D-Van Nuys), who introduced the bill, said the president’s policy shift makes it more likely that state-chartered banks would be used by the burgeoning cannabis market, which is projected to grow to $7 billion annually by 2020 in California.
“I’ve spoken to these companies about the problems their businesses face, and until last week, many were under constant threat of getting busted by the feds,” Hertzberg said. “If the risk of federal intervention is eliminated, cannabis businesses will feel more confident about opening an account with our limited state charter.”
CANNABIS CPA UPDATE
- Moreno Valley’s City Council adopted an ordinance that added cannabis micro-businesses as an allowed category. This likely means they will issue more licenses, but nothing is official yet. Stay tuned for more updates from Moreno Valley this week.
- Gonzales recently adopted an ordinance that increased the maximum number of marijuana cultivation and manufacturing permits from three to eight.
- West Hollywood continues to inch closer to finalizing all of their application information and grading scales. It looks as though applications will open May 2.
- Oxnard recently adopted an ordinance stating that it will allow deliveries of medical cannabis from licensed businesses outside of its city.
Title: Grover Beach closer to lowering cannabis taxes
Author: New Times
Date: 19 April 2018
Members of the council voted 3-2 on April 16 to direct city staff to develop an ordinance that cuts tax rates for commercial cannabis retailers, manufacturers, distributors, and cultivators and caps the maximum amount of taxes some of those businesses will have to pay.
Councilmembers Jeff Lee and Barbara Nicolls and Mayor John Shoals voted in favor of moving forward with the cuts, while Councilmembers Mariam Shah and Debbie Peterson voted against it.
If passed, the cuts will lower gross receipts taxes for commercial recreational marijuana retailers from 10 percent to 5 percent. Gross receipts tax on manufacturing and distribution businesses would be lowered to 3 percent. Commercial cannabis cultivation operations would be taxed at $5 per square foot of building floor area, down from $25 per square foot for the first 5,000 square feet of canopy, and $10 per square foot past that.