CDTFA Serves Tax Warrants On a Dozen Unlicensed Pot Businesses
The California Department of Tax and Fee Administration (CDTFA) has served tax warrants on a dozen illicit cannabis businesses operating illegally in Southern California. CDTFA seized nearly $1 million in products and almost $100,000 in cash as part of the operation. The CDTFA was assisted by the California Highway Patrol.
“The CDTFA's collaboration with the CHP is an important deterrent to tax evasion,” CDTFA Director Nick Maduros said in a statement. “Tax evasion unfairly shifts the burden onto all other taxpayers and makes it tough for those businesses that are playing by the rules to survive.”
Retailers that operate illegally deny a significant amount of tax revenue to the state. California currently levies a 15% excise tax on commercial sales plus a 7.25% sales tax and $9.65 per oz. for cultivation. That doesn’t include local taxes and fees.