The passage of Proposition 64 gives urgency to the need to find a system for handling the hundreds of millions of dollars now generated in cash by the marijuana industry in California, according to Fiona Ma, chairwoman of the state Board of Equalization.
The issue arises because federally regulated banks will not accept drug proceeds, so pot shops can't write bank checks or use credit cards to pay fees and taxes to the state.
In addition to pot shops having difficulty handling their deposits, the state faces a difficult situation accepting up to $1 billion in annual taxes in cash.
“We are going to have to figure out the cash issue and how we are going to accept the cash.” Ma said. “We are working on different options right now to try to alleviate the cash problem.
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The issue arises because federally regulated banks will not accept drug proceeds, so pot shops can't write bank checks or use credit cards to pay fees and taxes to the state.
In addition to pot shops having difficulty handling their deposits, the state faces a difficult situation accepting up to $1 billion in annual taxes in cash.
“We are going to have to figure out the cash issue and how we are going to accept the cash.” Ma said. “We are working on different options right now to try to alleviate the cash problem.
Read more
