Key Takeaways
- 1. Marijuana related businesses and dispensaries typically deal with large amounts of cash because of the limitations associated with the federal banking system and marijuana business.
- 2. We anticipate a heightened risk of audit is because this is a “new” industry for the Board of Equalization and there’s not a lot of statistical data associated with marijuana businesses.
On Tuesday, California voters passed historic legislation by voting to allow the recreational use of marijuana in California. Regardless of your opinion about marijuana use, the legislation will have a huge impact on the state of California and its citizens and will bring a large source of new taxable revenue into the state. Because of the complexity surrounding the tax laws surrounding the new measure, I have put together a rough guide of issues for marijuana businesses and California citizens to be aware of.