Lil'Shop has adopted the rose garden and every year volunteers come together to give a good 'feed' to the 600-roses for the Woodland Rose Club. Last year our efforts were greatly rewarded with large lasting blooms, and the smiles of our neighbors. Come be a part of this new tradition!
Surrounding the Woodland Library
250 1st St, Woodland, CA 95695
Alarmed that California's fledgling legal marijuana industry is being undercut by the black market, a group of lawmakers proposed Thursday to reduce state taxes for three years on growing and selling cannabis to allow licensed sellers to get on their feet.
With many California license holders claiming they can't compete because of high state and local taxes, the new legislation would cut the state excise tax from 15% to 11% and suspend a cultivation tax that charges $148 per pound.
"Criminals do not pay business taxes, ensure consumers are 21 and over, obtain licenses or follow product safety regulations," said Assemblyman Tom Lackey (R-Palmdale), one of five legislators pushing the bill. "We need to give legal businesses some temporary tax relief so they do not continue to be undercut by the black market."
California lawmakers are proposing a temporary tax cut for cannabis in an effort to undercut the illicit market and encourage the state’s transition to legal, regulated sales.
On Thursday, Assemblymembers Tom Lackey (R-Palmdale) and Rob Bonta (D-Oakland) announced Assembly Bill 3157, which for a period of three years would reduce the state excise tax on cannabis from 15% to 11% and suspend a separate tax on cannabis cultivation. The bill’s co-authors include Assemblymembers Ken Cooley (D-Sacramento), Reggie Jones-Sawyer (D-Los Angeles), and Jim Wood (D-Healdsburg).
“As someone who spent 28 years in law enforcement, I know how sophisticated California’s black market for cannabis has become,” Lackey said in a statement announcing the legislation. “Criminals do not pay taxes, ensure customers are 21 and over, obtain licenses or follow product safety regulations. We need to give legal businesses some temporary tax relief so they do not continue to be undercut by the black market.”
Xiphos was founded by experienced cannabis security professionals. Prior to launching as a start-up here in California, our team was working with the industry in Colorado since the inception of recreational-use cannabis. We started our own company in order to create an organization that was more in line with our values of competence, capability, and community. We believe in being the best at what we do, working with clients to develop a personalized security solution, and giving back to our community where we’re able. Prior to working in the security sector, our leadership team all served in either the US Army Special Forces, or the US Marine Corps. We offer comprehensive and full-spectrum security solutions for clients of all sizes. Whether it’s a start-up grow, or an established dispensary, our team can provide a custom solution for the development of security plans, training, facility hardening, physical security, transportation security, and more. We work with our clients to provide a solution that will fit their budget while keeping their product, assets, and – most importantly – their people safe.
It seems like every state in its own way has tried to grapple with a state-legislated solution to the notorious banking issue across the cannabis industry. And now California is going to study its own banking solution that, in all reality, probably isn’t going to go anywhere.
While California is predicted to take in $7 billion by 2020 because of legalization, its licensed operators have nowhere reliable to put all of that cash, and you can be sure that the California Department of Tax and Fee Administration doesn’t want those operators trucking hundreds of thousands of tax dollars to Sacramento. Additionally, the cash epidemic was made more complicated by the fact that Attorney General Sessions’s rescission of the 2014 Department of Justice (DOJ) Financial Crimes memo that addressed marijuana financial crimes by allowing financial institutions to bank marijuana businesses in states with “robust regulation” in concert with the 2014 FinCEN guidelines (which, thankfully, still exist). The Department of Treasury is currently looking at those guidelines and is trying to decide whether to revise them in the wake of Sessions’s decision.
California is just starting to get its cannabis packaging and labeling regulations right under MAUCRSA. California has a mandated transition period from January 1 to July 1, 2018, during which time adult use and medical marijuana licensees can do business with each other and temporary and annual state licensees can transport and sell cannabis products already in their possession in the newly regulated market. This means there are two packaging and labeling standards during this transition period: one for products that licensees bring into the marketplace from before January 1, 2018 and another for products cultivated or made on or after January 1, 2018.
On the first day of California’s recreational legal marijuana sales, the most populous state in the country had only about 90 dispensaries operating. On the 33rd day, there were 218, and the state’s highest-ranking marijuana official held court at the International Cannabis Business Conference (ICBC) to describe everything that’s happened — and is still happening — in the biggest new legal marijuana market in the world.
As Week Five came to a close, California Bureau of Cannabis Control chief Lori Ajax sat for an ICBC keynote session called “California Controlled: An Interview with Lori Ajax and Alex Traverso.” (Traverso is the bureau’s chief of communications.)
A disproportionately small group of cannabis cultivation businesses in California control a large share of the licenses intended for “small” farming operations, a Business Journal review of state data has found.
Since Jan. 1, the California Department of Food and Agriculture has awarded about 540 temporary licenses for so-called “small” operations — that is, for cultivation that takes place on less than one quarter of an acre outdoors or less than 10,000 square feet indoors or in "mixed-light" settings. These temporary licenses last four months and are seen as a first step toward a permanent license.
Cannabis may be legal in California, but for many entrepreneurs, this industry still carries a stigma that can be hard to overcome when seeking funding. Investors may be intrigued, but the newness of California’s regulations paired with the unknown of funding a new business may create a level of risk that turns away funders. Plus, banks are reluctant to give new cannabis entrepreneurs a loan. Because cannabis is still considered a Schedule I drug by the DEA, banks that provide loans to California cannabis businesses could be subject to prosecution.
For a canna-business, this presents a unique problem. Starting any business requires some amount of cash: according to Census data, more than 40% of all small businesses started up for under $5,000. Cannabis businesses are typically a bit more capital-intensive. For example, by some estimates, opening a cannabis dispensary can run you approximately $50,000-$65,000 in start-up expenses. Yikes.