California pot industry is going up in smoke

[Remarkableriots]

California county considers 'death penalty' for cannabis farms

WWW.SFGATE.COM

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Santa Barbara County is getting serious about policing its local cannabis industry.

Quote

 

Tax payments have become a growing concern for the entire state’s cannabis industry. Companies across the pot supply chain are drowning in millions of dollars of debt, and hundreds of cannabis stores missed a key tax deadline for state taxes this year. 

Santa Barbara County charges cannabis cultivators a 4% tax on their business revenue that must be paid quarterly. The county has struggled to collect taxes on its businesses, according to Brittany Odermann, deputy county executive officer. Odermann told the board during the June 27 meeting that county law allows pot farms to indefinitely delay payment on their quarterly taxes, with some farmers paying their taxes nearly a year late.

 

[stepee]

im doing the best i can over here to help

[Fizzzzle]

I have every reason to believe that the cannabis industry is a big grift by... someone. In Oregon, marijuana is a $1 billion/year industry, yet if you ask anyone involved in the industry at any level, from dispensaries to distributors to growers, apparently no one is making any money. Sure, the state takes some of it, but apparently the rest just vanishes into thin air.

 

edit: Also the $1 billion is just what's reported. Remember marijuana sales are still all in cash.

[Biggie]

I wish it were legal here 

[best3444]

9 minutes ago, Biggie said:

I wish it were legal here 

 

Same. I had a marijuana license but jfc it is wayyy too expensive. 

[Air_Delivery]

1 hour ago, Fizzzzle said:

I have every reason to believe that the cannabis industry is a big grift by... someone. In Oregon, marijuana is a $1 billion/year industry, yet if you ask anyone involved in the industry at any level, from dispensaries to distributors to growers, apparently no one is making any money. Sure, the state takes some of it, but apparently the rest just vanishes into thin air.

 

edit: Also the $1 billion is just what's reported. Remember marijuana sales are still all in cash.

Hollywood accounting

[silentbob]

Grow your own shit and be happy. Get some auto seeds that will flower on there own and get a small closet setup grow going.

 

After working in a pot store for 10 months, I still didn’t know how we were still open. Some days we did about $1400 and that was for roughly 4 of the 7 days we were open for. ($5-6k on a good day, but usually 3-4K on average for the other 3 days of the week) Canadian stores suck because you can’t see the product with all the limits on our packaging. The prices are expensive for 3.5g of usually really dry weed, and edibles are limited to 10mg THC per package. I should look into getting a medical license like my cousin. She’s allowed to grow 38 plants inside or 11 outside I believe, instead of the 4 we are allowed to legally grow. I have 7 outside now, but Buddy might of killed my one non THC plant(CBG) and 5 more in my tent. Would of love to of done my tent grow outside but they wouldn’t of finished until late November outside. All of them are landrace Sativas and I’m growing one that took me 18.5w just to finish flowering. (Love you Golden Tiger)

[Fizzzzle]

1 hour ago, silentbob said:

Grow your own shit and be happy. Get some auto seeds that will flower on there own and get a small closet setup grow going.

 

After working in a pot store for 10 months, I still didn’t know how we were still open. Some days we did about $1400 and that was for roughly 4 of the 7 days we were open for. ($5-6k on a good day, but usually 3-4K on average for the other 3 days of the week) Canadian stores suck because you can’t see the product with all the limits on our packaging. The prices are expensive for 3.5g of usually really dry weed, and edibles are limited to 10mg THC per package. I should look into getting a medical license like my cousin. She’s allowed to grow 38 plants inside or 11 outside I believe, instead of the 4 we are allowed to legally grow. I have 7 outside now, but Buddy might of killed my one non THC plant(CBG) and 5 more in my tent. Would of love to of done my tent grow outside but they wouldn’t of finished until late November outside. All of them are landrace Sativas and I’m growing one that took me 18.5w just to finish flowering. (Love you Golden Tiger)

Can cannabis business in Canada use banks, since it's federally (or whatever the Canadian equivalent is) legal?

 

In the states, banks for the most part (sometimes local banks will) as well as companies like Visa still won't touch it, since there's still the threat of federal prosecution for drug trafficking potentially hanging over their heads.

 

Since everything is in cash, to some extent all reported earnings are based on the honor system. "How much can I get away with not reporting/writing off as expenses" is the rule of the day (to be fair that's true of every business, but when you're mainly dealing in cash it's a lot easier)

 

As long as it's federally illegal, you're going to have tons of actors in the industry claiming that they're barely scraping by even when they're doing fine.

 

I suppose it's a tale as old as capitalism. Uber's operating revenue last year was like $33 billion, yet they still say they don't make any money. In what world was Uber's operating cost $33 billion? They'll keep that lie up as long as the stock price keeps rising, meanwhile they're laundering billions of dollars through "expenses." Every single tech company does this.

[silentbob]

9 minutes ago, Fizzzzle said:

Can cannabis business in Canada use banks, since it's federally (or whatever the Canadian equivalent is) legal?

 

In the states, banks for the most part (sometimes local banks will) as well as companies like Visa still won't touch it, since there's still the threat of federal prosecution for drug trafficking potentially hanging over their heads.

 

Since everything is in cash, to some extent all reported earnings are based on the honor system. "How much can I get away with not reporting/writing off as expenses" is the rule of the day (to be fair that's true of every business, but when you're mainly dealing in cash it's a lot easier)

 

As long as it's federally illegal, you're going to have tons of actors in the industry claiming that they're barely scraping by even when they're doing fine.

 

I suppose it's a tale as old as capitalism. Uber's operating revenue last year was like $33 billion, yet they still say they don't make any money. In what world was Uber's operating cost $33 billion? They'll keep that lie up as long as the stock price keeps rising, meanwhile they're laundering billions of dollars through "expenses." Every single tech company does this.

Yeah we took anything and everything for transactions. I would say more debit/credit transactions by a good +80% over cash and gift card. So we don’t have the money and bank issue but the taxes on the businesses and pot price in the store itself are huge. Remember watching that great series Weediquette talking about former soldiers who know now escorted the money for pot shops to sucure vaults of their own. All the employees were paid by cash though and something special needed come tax time for employees

[TUFKAK]

So they’re not paying their taxes. I care because why? pay your taxes or get fucked.

 

Taxes to 

 

 

[Jason]

13 minutes ago, TUFKAK said:

So they’re not paying their taxes. I care because why? pay your taxes or get fucked.

 

Taxes to 

 

 

 

They can't file federally electronically because banks won't touch them. This incurs big fees for filing business taxes via paper. The IRS literally told them to go launder their money to get around it. 

 

They also can't claim normal business expenses because of their legal situation. 

[TUFKAK]

3 minutes ago, Jason said:

 

They can't file federally electronically because banks won't touch them. This incurs big fees for filing business taxes via paper. The IRS literally told them to go launder their money to get around it. 

 

They also can't claim normal business expenses because of their legal situation. 

Sounds like a bad business 

 

I’ve no sympathy for multi billion dollar industries who can’t fulfill their obligations. 
 

my optimal federal tax rate is 35%, on top of a damn near 11% sales tax in my county plus 9.3 state tax. I pay an accountant for a reason. They can go out of business if they can’t pull their weight.

 

fuck em.
 

[Jason]

5 minutes ago, TUFKAK said:

They can go out of business if they can’t pull their weight.

 

It would be cool if the feds would actually let them pull their weight.

[TUFKAK]

10 minutes ago, Jason said:

 

It would be cool if the feds would actually let them pull their weight.

What I’m hearing is people voluntarily  entered into a legally murky grey area and are now crying their operating expense may be a bit higher than they’d prefer.

 

sad violin 

 

and in this case, they haven’t paid their local taxes hence why Santa Barbara us gonna fuck them. Is Joe Biden at fault for that? 😂

 

tf dude. How are the feds involved in these fucks not paying their local taxes? Not even fucking Octavian had that level of control.

[silentbob]

12 minutes ago, Jason said:

 

It would be cool if the feds would actually let them pull their weight.

[SoberChef]

To be fair, it needs to be de-scheduled on a federal level & policies enacted so that it isn't merely a cash business, as it's essentially legal cartels then.

[TUFKAK]

2 hours ago, SoberChef said:

To be fair, it needs to be de-scheduled on a federal level & policies enacted so that it isn't merely a cash business, as it's essentially legal cartels then.

Maybe they should pay their state and local taxes first 

[Keyser_Soze]

3 minutes ago, TUFKAK said:

Maybe they should pay their state and local taxes first 

 

They were going to pay their taxes but then...

 

 

[TUFKAK]

9 minutes ago, Keyser_Soze said:

 

They were going to pay their taxes but then...

 

 

I think it’s cause dark Brandon appointed some random jurist to a court nobody cares about therefore California businesses can’t pay their taxes. 
 

Deep state confirmed. 
 

can I petition the Feds to alter my property taxes? Since apparently they control down to the county level now.