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.
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.
Assemblyman Mike Gipson (D-Carson) carried the bill, which is supported by the marijuana industry.
The bill was opposed by several Republicans, including Sen. Joel Anderson of San Diego, who noted that other industries would like the option of paying taxes with methods other than electronic transfer.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.
Assemblyman Mike Gipson (D-Carson) carried the bill, which is supported by the marijuana industry.
The bill was opposed by several Republicans, including Sen. Joel Anderson of San Diego, who noted that other industries would like the option of paying taxes with methods other than electronic transfer.
“Why are we making exceptions for this industry and not all industries?” Anderson asked during the floor debate. “What would be the compelling reason to give them special treatment?”
“Why are we making exceptions for this industry and not all industries?” Anderson asked during the floor debate. “What would be the compelling reason to give them special treatment?”
Independent Examiner 