With marijuana businesses unable to use banks, the California Senate approved a bill Tuesday that would allow them to pay state taxes with cash while avoiding a penalty that is currently imposed.
The Senate sent Gov. Jerry Brown AB 821, which would end the state Board of Equalization policy of charging a 10% penalty when taxes of more than $10,000 are paid in cash. The board now considers waiving the penalty for cash payments on a case-by-case basis.
“It’s very cumbersome and time-consuming,” said Sen. Fran Pavley (D-Agoura Hills) of the waiver process.
Federal law classifies marijuana as an illegal drug, which means businesses that handle cannabis cannot deposit their sales revenue at federally regulated banks.
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The Senate sent Gov. Jerry Brown AB 821, which would end the state Board of Equalization policy of charging a 10% penalty when taxes of more than $10,000 are paid in cash. The board now considers waiving the penalty for cash payments on a case-by-case basis.
“It’s very cumbersome and time-consuming,” said Sen. Fran Pavley (D-Agoura Hills) of the waiver process.
Federal law classifies marijuana as an illegal drug, which means businesses that handle cannabis cannot deposit their sales revenue at federally regulated banks.
Read more
