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Calif. Lawmakers Offer Tax Amnesty For Marijuana Shops


Estimating that two-thirds of the medical marijuana stores in California have failed to pay sales taxes, state officials on Tuesday took a carrot-and-stick approach to persuade pot shops to pay the $106 million owed.

With the state preparing to license medical marijuana shops in 2018, the Assembly sent Gov. Jerry Brown a bill Tuesday that would establish a tax amnesty program to help bring scofflaws into compliance with the law.

The measure would allow medical cannabis sellers to temporarily avoid a penalty of 25% to 50% on late taxes but would block the issuance of new state licenses to any continuing violators.

Assemblyman Mike Gipson (D-Carson), who introduced the bill, said many medical cannabis shops have not registered with the state and paid taxes for fear of criminal prosecution because marijuana remains an illegal substance under federal law.

“You have a lot of businesses that would like to come out of the shadows and do the right thing,” Gipson said.

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