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BOE Chairman Supports Targeting Medical Cannabis Tax Evasion

The BOE has identified 935 active cannabis businesses in the City of Los Angeles of which approximately 258, or 28 percent, were found to be operating without a BOE seller’s permit.

The BOE has identified 935 active cannabis businesses in the City of Los Angeles of which approximately 258, or 28 percent, were found to be operating without a BOE seller’s permit.

Board of Equalization (BOE) Chairman Jerome E. Horton announces his support for a “Cannabis Tax Enforcement ‘Eliot Ness’ Plan,” which is intended to educate, investigate, audit, arrest, and force cannabis sellers to pay their fair share of taxes. Horton is sponsoring new legislation authored by Assemblyman Mike Gipson, “The Cannabis Tax Amnesty Act,” which is an important part of this plan to encourage cannabis operators to comply with current laws and regulations.

“Because of the illegal aspect of cannabis sales and their potential to fund illegal activities in our communities, it is important that we distinguish between the responsible and irresponsible growers, distributors, vendors and consumers, and enforce the law to its fullest extent for those who choose to violate existing law,” said Chairman Horton. “The Cannabis Tax Amnesty Act is an opportunity for those not in compliance to bring themselves out of the shadows of the underground economy and in line with existing law.”

“Amnesty programs have proven to be helpful in reducing crime, increasing compliance, and leveling the playing field for legitimate operators,” said Assemblyman Gipson. “If passed, cannabis operators will have two options: comply with the law or risk imprisonment, as gangster Al Capone did for tax evasion.”

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