Tax Relief

Hashish firms are demanding tax breaks after theft

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“Overall, these small and mostly stock-licensed companies are now facing losses of over $ 5 million.”

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Angela Stelmakowich “If cannabis or cannabis products are stolen from a retailer, cannabis excise tax cannot be owed.” / Photo by Aleksandr_Kravtsov / Getty Images

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Cannabis companies in Oakland, California, damaged during a spate of robberies earlier this month, involving theft of cash and products, are demanding tax breaks from both local and state agencies.

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Cannabis retail businesses targeted during a recent robbery and looting process in the Bay Area – which includes communities like San Francisco and Oakland – need assistance “to get them back and running,” notes Supernova Women, a nonprofit Organization dedicated to empowering Black and Brown people to become self-sufficient shareholders in cannabis and natural herbal medicine.

Supernova Women reports that 15 licensed cannabis companies in Oakland, including shops and offices, were vandalized in the week of November 15th. These companies included cultivation, manufacturing, distribution and retailing, according to the corporate statement.

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The perpetrators got away with money-worthy products, the group claims, adding that such efforts are often coordinated and involve many individuals and organized gangs, according to the police report. “Overall, these small and mostly stock-licensed companies are now facing losses of over $ 5 million,” claims Supernova Women.

“In a year when the pandemic and global supply chain disruptions have hampered business growth and sustainability, recent robberies represent another major challenge for small cannabis companies,” the statement said. “They also threaten the viability of a retail cannabis industry in Oakland.”

Henry Halston Jr., co-founder of cannabis brand James Henry, described the recent incidents as heartbreaking and heartbreaking. “The damage and stolen property represent significant losses that we must find a way to cover. This includes local and state taxes on the stolen inventory. This could be too much for us to overcome, ”says Halston in the press release.

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“The tax piles and hikes, and now the threat of robbery and violence, is proving to be intolerable for most cannabis operators,” said Amber Senter, co-founder and chairman of Supernova Women. “We need more protection and we need more money and resources to improve security so that we can protect ourselves,” added Senter.

California government information states that retailers “must pay sales tax and cannabis excise tax on all taxable sales despite loss of cash through theft … If cannabis or cannabis products are stolen from a retailer, cannabis excise tax may not be owed. ”

In general, retail buyers of cannabis and cannabis products are charged a 15 percent excise duty, the information says. “As a retailer, you are required to pay cannabis excise tax to your dealer and collect cannabis excise tax from your customers,” it says.

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For their part, growers will pay $ 10.08 ($ 12.90) per dry weight ounce (28 grams) of flower from 2022.

The Cato Institute notes that the state continues to impose an 8.5 percent sales tax on recreational marijuana users, but not medical cannabis users.

In an Instagram post, Supernova Women argues that “regular Oakland companies pay 0.12 percent. Where is our representation reflecting this imbalance in taxation? “The post points out that” cannabis needs reduced taxes to stay afloat, “adds the Post,” If we want the cannabis economy to grow to its fullest , these security problems must be eliminated quickly. “

The Cato Institute recommends California politicians deregulate industry and cut taxes. “When cannabis is formally legal but severely restricted by government action, the effects are similar to prohibition,” she adds.

A Facebook post by Supernova Women reported today: “With the spate of break-ins affecting every type of cannabis business in Oakland, we are partnering with Equity Trade Certification to create the Cannabis Equity Relief Fund (CERF) for BIPOC and social equity operators open that was affected. “

Helping cannabis operators stay in business “helps keep big tobacco and big pharmaceutical companies out of our business,” argues the group.

“With little to no help from insurance companies, we will band together to rebuild our businesses. Products, property, morals and everything. “

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