(Photo by Chris Casacchia for MJBizDaily)
One of California’s largest cannabis dispensary chains is challenging an emergency rule change that state tax collectors implemented in December to vastly expand the scope of marijuana excise taxes.
HNHPC Inc., which operates as Catalyst Cannabis Co., filed a lawsuit Dec. 28 in Superior Court in Orange County contending the California Department of Tax and Fee Administration and the Office of Administrative Law colluded to:
Enact excise taxes and collect related payments from dispensaries on non-cannabis products, such as accessories, in violation of the state’s Administrative Procedures Act. Abuse their emergency regulatory authority to “cram down” improperly retroactive regulations with little notice to operators.
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The lawsuit centers on which elements of cannabis products qualify under
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