Budget Blues: Cal City Suffers $600K Hit from Unpaid Cannabis Taxes!

California City is aggressively pursuing $600,000 in overdue cannabis taxes from the most recent quarterly payment, according to a report. Inge Elmes, the newly appointed cannabis tax administrator, has indicated that the city is prepared to take further action if necessary to collect these taxes.

Cal City Mayor Pro Tem Ron Smith stressed the need for maximum enforcement regarding cannabis-related issues. He recalled that seven years ago, the community was promised that cannabis taxes would eliminate the need for a special tax, with projections of $11 million annually. However, the city will be fortunate to collect $1 million in cannabis taxes this year.

Budget Blues: Cal City Suffers $600K Hit from Unpaid Cannabis Taxes

Elmes, who also serves as the O-H-V manager, took on the role of cannabis tax administrator last month after a year-long vacancy. She spends about 20 hours per week on cannabis-related issues and has issued letters to those with delinquent taxes. “The city is in a very dire position financially,” Elmes stated, highlighting the responsibility to move the city forward.

Herbert Gonzalez, a local cannabis business owner, expressed frustration over frequent inspections and has put his property up for sale. He cited ongoing issues, including a citation for having a service dog on his property, as reasons for his frustration. “The city is adamantly pursuing money,” Gonzalez said, “but if they allowed us to operate and make money, we would have no problem paying taxes.”

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Smith emphasized the importance of strict enforcement, stating, “It’s irresponsible not to do maximum enforcement in all things cannabis.” While cannabis remains a permanent fixture in California City, the challenge lies in making it work for everyone involved in the industry.

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