#cannabisindustry – “Ostrowitz said, “I’m grateful to have this litigation behind me and move onward to the next chapter. Also if it can serve as a cautionary tale, I would tell other entrepreneurs that in this litigious society this can happen to anyone, even if you play by all the rules. If I could go back in time and give my young entrepreneur self any advice, it would be to create a “litigation” savings account and put aside at least 5% of each paycheck, and hope you never have to use it.””
#californiacannabis – “Claremont residents will be asked to approve a cannabis tax in November after the City Council voted this week to place the question on the ballot.
If approved by more than 50% of voters, the ballot measure would allow the city to impose a tax on cannabis and hemp businesses in the future….
The proposed tax for retail businesses, including storefronts and delivery services, would range from 4% to 7% of gross receipts. For all other businesses, including cultivation and distribution, the proposed tax is up to 4% of gross receipts or up to $10 per square foot of space, according to a report prepared for council….
This would give the council flexibility to adjust to changing market conditions and trends, according to David McPherson, compliance director at Hdl, the company hired to help Claremont with its cannabis tax measure.
However, once the cannabis tax rate range is locked in, any changes or adjustments would have to go back to voters, according to City Attorney Alisha Patterson.”
#californiacannabis – “At its next city council meeting Tuesday, the council plans to discuss whether to ask voters, again, to adopt a special tax on cannabis businesses, the first step to allowing pot shops and manufacturers to operate in the city in the upcoming November election.
The council decided to table the discussion at its last meeting and will discuss the issue Tuesday.
“It’s apparent that residents support the tax and [implicitly] support commercial cannabis in Huntington Beach,” said Dan Kalmack, a Huntington Beach council member, Wednesday to Spectrum News. “We’ve had all but no opposition in our many public meetings on the matter. We’re still working on the how, not the if.””
#cannabisindustry – ““Every state is its own story, with a different regulatory structure,” said Kevin Bush, chief financial officer for Denver-based Sweet Leaf Madison Capital.
George Mancheril, CEO of Bespoke Financial, a Los Angeles commercial lender that works with cannabis companies, said marijuana stands out as one of the only industries where businesses are experiencing deflation.
Mancheril expects that most companies in mature markets won’t have a banner year but should be able to slog through and survive until the end of 2023 or 2024.”
#cannabisindustry – “In the cannabis industry, many regulations cause inordinate costs for businesses but don’t benefit the public much. This includes location restrictions for retailers. No real social harm results from retailers being near libraries and parks, but these and other similar policies unduly burden cannabis businesses with higher real estate costs and make licensing unnecessarily competitive, driving costs up further. Legislators presumably adopt these policy in place to keep kids and other vulnerable populations away from cannabis dispensaries. But hundreds of thousands of people (including kids) walk and drive the major streets where cannabis retailers are located. So these regulation are not even effective in achieving their presumed goal….
The costs of regulation for both a regulator and the industry shouldn’t exceed the social costs that would result in the absence of regulation. So, the costliest types of regulations (known as command and control or “hard law”) should be reserved for scenarios where a lack of regulation leads to significant social harm. Is the method of regulation even effective at achieving those benefits? If it’s not, then it’s definitely not necessary. And perhaps another method would cost less or at least be more effective.”