Cannabis retailers in Los Angeles are refusing to pay their city taxes until regulators or law enforcement solves the illicit market problem.
According to a recent Fox News report, Elliot Lewis, the outspoken founder and CEO of Catalyst Cannabis, is among the retailers who have stopped paying local cannabis taxes in Los Angeles, where licensed operators owe as much as $400 million.
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In addition to state taxes, cannabis businesses in LA are charged local gross receipts taxes of as much as 10%.
More than 500 of the LA’s 738 marijuana businesses owe outstanding taxes, according to SFGate.
That includes Catalyst, which operates 33 marijuana stores statewide, Lewis said.
“In the city of LA, we have stopped paying our taxes,” he told Fox.
Lewis
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