California Cannabis Dispensaries Face Cash-Only Tax Payments Amid Banking Challenges
California cannabis dispensaries face cash-only tax payments due to federal banking restrictions, causing safety concerns as recreational marijuana legalization approaches
Key Points
- 1California cannabis dispensaries operate cash-only due to federal banking laws
- 2Dispensary owner Jerred Kiloh transports over $40,000 monthly for tax payments
- 3Recreational marijuana legalization may worsen banking challenges
- 4Los Angeles officials seek solutions for handling large cash transactions
- 5Industry stability and safety hinge on resolving banking hurdles
As California's cannabis industry thrives, dispensary owners face significant challenges due to federal banking restrictions. Despite the industry's growth, banks remain hesitant to engage with cannabis businesses, fearing federal repercussions. This forces dispensary owners to handle large sums of cash, complicating transactions and tax payments
Jerred Kiloh, a medical marijuana dispensary owner, exemplifies this predicament. Each month, he transports over $40,000 in cash to pay taxes, a risky endeavor that underscores the industry's reliance on cash transactions. With the legalization of recreational marijuana on the horizon, the issue is expected to escalate unless banks change their approach
Los Angeles City Council President Herb Wesson acknowledges the abnormality of handling such vast amounts of cash, emphasizing the need for a viable solution. As the state prepares for the influx of revenue from recreational sales, addressing these financial hurdles is crucial to ensuring the industry's stability and safety