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CA Board of Equalization wants illegal pot sellers to pony up on lost taxes

by AirTalk®

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A budtender pours marijuana from a jar at Perennial Holistic Wellness Center medical marijuana dispensary, which opened in 2006, on July 25, 2012 in Los Angeles, California. David McNew/Getty Images

The CA Board of Equalization (BOE), the state’s tax commission, is throwing its weight behind a plan aiming to get underground medical marijuana dispensaries to pay taxes.

Of the estimated 935 cannabis businesses operating in the City of Los Angeles, about 258 of them don’t have a BOE seller’s permit. Under the plan, BOE would work with these underground dispensaries to comply with state regulations and pay their taxes without receiving punishment.

How does the plan work? Why aren’t dispensaries paying their fair share of taxes? Would the plan work?


Jerome Horton, Chairman, California Board of Equalization, the state tax commission

David Welch, LA-based attorney working in the medical marijuana industry

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