Bloomberg
A medical cannabis dispensary operator sued California’s tax agency for a $365,000 sales tax refund, alleging that the state ignored evidence from its own audit to overestimate the company’s sales.
The state based MMD Inc.’s tax bill on its 2013 sales, which the government said was representative of the company’s sales volume for the period in dispute, 2010-2012, the business said. But a subsequent audit showed the business was generating far less than the state estimated, the company said.
Robert Hastings performed the audit for the challenged tax years by conducting an “observation test” on MMD’s potential volume of sales, …