San Diego Sues to Collect Unpaid Cannabis Taxes

The city of San Diego just announced a lawsuit against businesses that work with the city and failed to pay their city cannabis taxes, money the city counts on coming in from the cannabis industry in order to keep infrastructure running. 

It’s no surprise the city is upset about missing this tax money, as they can use it to help with budget cuts in the face of more COVID-19-related expenses, which are inevitably coming this winter. Not only will there be expenses, but other industries the city relies on, such as tourism and hotel taxes, have been drastically reduced, so the income is needed more than ever. 

Officials from the city claim that Grizzly Peak Farms, one of the main companies getting sued, owes nearly $10,000 in back taxes. Grizzly Peak is located in Oakland, but they owe taxes for product delivered to San Diego for sale within city limits.

“It really kind of slipped through the cracks,” said Dave Gash, owner of Grizzly Peak, who claims the company did not mean to evade the tax and instead were not aware that it needed to be paid. “It’s legitimate, but it’s a weird city tax. We never heard about it, so

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