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California targets cannabis businesses over unpaid taxes

California’s business tax collector is ramping up enforcement against unlicensed and licensed cannabis companies, which owe the state nearly $200 million in unpaid taxes.

In the past few months, the California Department of Tax and Fee Administration (CDTFA) has taken a new tack against underground businesses that have undermined the legal market by skipping taxes and undercutting licensed companies.

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In particular, the CDTFA has launched raids and auctioned off seized properties as part of heightened efforts to collect unpaid taxes and rein in underground operators.

Legal businesses, meanwhile, are facing stepped-up efforts by the state as well.

The escalation, according to the department, signals a return to normalcy in state government functions as the economy rebounds from the pandemic-led downturn.

CDTFA spokesperson Tamma Adamek told MJBizDaily via email that the department “was mindful of hardships that all businesses faced during the pandemic.

“Now that the economy is showing

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