For Immediate Release: July 15, 2015
Contact: Francis Taylor, 1-310-297-5201
BOE Chairman Announces: Board of Equalization Will Accepts Cash Payments From Medical Cannabis Business Operators
Los Angeles — Medical cannabis business owners may pay their tax liability to the California State Board of Equalization (BOE) in cash, simply by securing a seller’s permit from the Board of Equalization (BOE) and submitting a written request. BOE district offices will work with cannabis operators, whether they are legitimate medical cannabis distributors or underground sellers who wish to come out of the shadows, to establish a recurring schedule for cash payment.
The BOE has been in the business of auditing, investigating, and accommodating cash businesses for decades. There are a number of challenges, but in many ways it really is not that complicated. Cash businesses have no excuse for not maintaining books and records, and reporting their taxes just as non-cash-based business owners do.
“Ever since gangster Al Capone was brought down in 1931, not for organizing the Saint Valentine’s Day Massacre of his gang’s rivals but for tax evasion, criminals have been pretty creative in complying with state and federal tax laws, avoiding tax fraud charges, and protecting their due process and appeals rights under the law,” said Chairman Horton.
The BOE will help medical cannabis business operators pay their tax liability by eliminating the need to bring in large amounts of cash, assisting them in registering their business under their DBA (Doing Business As), and accepting personal checks as payment for their tax liability. Medical cannabis sellers, and other permit holders, can contact their nearest field office to make arrangements.
Chairman Horton will host two events in Los Angeles to facilitate compliance in the medical cannabis industry: a Medical Cannabis Telephone Town Hall on August 18, 2015, from 3 p.m. to 4 p.m., and a Medical Cannabis Business Seminar on September 9, 2015, from 1 p.m. to 3 p.m. Both events will be open to the public. The Telephone Town Hall will provide a brief overview of state and federal requirements and links to government agencies frequently asked questions. The Medical Cannabis Business Seminar will explain how to complete the registration with various government agencies. In addition, an online medical cannabis compliance tutorial series will be available on Chairman Horton’s website by September 26, 2015. To obtain more information on the Telephone Town Hall meeting or the live presentation, or to register, go to Chairman Horton’s Web page or call 1-888-847-9652.
# # #
Jerome Horton, Chairman of the California Board of Equalization, first engaged in combating businesses operating in the underground economy as an auditor with the BOE more than 27 years ago. As a Legislator, he authored Assembly Bill (AB) 71, the Cigarette and Tobacco Products Licensing Act of 2003 that governs the illegal sales of cigarettes and tobacco products. He also sponsored and supported AB 309, which required sales tax prepayment on motor vehicle and diesel fuel at the first point of distribution. As a member of the BOE he sponsored AB 576, the Revenue Recovery and Collaborative Enforcement Team Act, of which the TRaCE Task Force is a part, to combat criminal tax evasion in the underground economy. Horton believes that under existing law, with a focus, organized and strategic education and enforcement effort we can distinguish the good guy from the criminals in the cannabis industry. For more information visit my medical cannabis initiative page.