TAXATION PANNEL -- Greedy cities are not the best places for business, a panel of state revenue and government tax experts told the CGA Spring Policy Summit.
“We’ve always been talking about taxes,” said Mark Lovelace of HDL Consulting, which advises local governments in revenue matters. “When most businesses say they want to come to your city or county, city councils and county boards usually say, ‘How can we help you?’ With the cannabis industry, many of them say, ‘How much money can we make off you?’ It’s a totally unique industry. They work against each other.”
Lovelace, a former member of the Humboldt County Board of Supervisors, admitted there were still local jurisdictions that seek to punish cannabis professionals, despite the passage of the adult-use initiative, Prop. 64.
Richard Parrot, program and compliance chief for the State Board of Equalization, clarified forthcoming regulations to establish when wholesale taxes must be paid on flowers and leafs.
Cultivators have been confused about whether taxes will be due at harvest, when the product leaves the farm, or when it enters the marketplace.
“Tax will be due when it’s harvested and is sold into the commercial market,” Parrot said. That means when the product reaches a distributor or enters consignment, he added.