Tes Macaraya is a partner and head of tax at Martini Iosue & Akpovi
Last November 8th, our firm, Martini Iosue & Akpovi and the law firm of Ervin Cohen & Jessup sponsored an event for the cannabis industry. The goal was to have people in this sphere share their experiences, thoughts, ideas and concerns. We had close to 100 people attend this event. It was exciting to see people from every aspect of the industry represented. There were representatives from the fire department, city of Los Angeles attorney’s office, growers, angel investors, people that sell edibles and supplements, and even researchers to name a few.
This event emphasizes that this industry is growing and the need for support is essential, particularly in the banking space. These businesses need to be given the opportunity to deposit their cash in a secure location.
I found this interesting article about a grower that was affected by the recent Redwood fires. Because of the inability to deposit cash from cannabis sales in banks, she buried the cash 2 feet underground. When she returned to her farm after the fires, she dug up her box and found a lump of gold, silver, cash, dirt and pine needles. Click on the link below to access the article.
Cannabis in California is permitted – subject to regulations – for both medical and recreational use. In recent decades the state has led the country in efforts to legalize cannabis, holding the first (unsuccessful) vote to decriminalize it in 1972 and, becoming the first state to legalize it for medical use in 1996. In the November 2016 election, voters passed an amendment legalizing recreational use of marijuana.
If you have any questions on the tax matters in this industry, please call Tes at (818) 789 1179.