The cash-only marijuana business wants badist safely transferring taxes to the state, and should get it from the California Treasurer’s Office within the type of armored couriers who’d decide up their funds.
State Treasurer John Chiang is exploring the concept as a approach to help the business, which is able to significantly develop on January 1st when the sale of hashish to adults turns into authorized. The state estimates that $7.6 billion in marijuana will probably be bought by 2020.
Cannabis firms have been successfully barred from banking companies as a result of marijuana remains to be unlawful underneath federal legislation.
Banks don’t need to run afoul of the federal authorities, forcing the marijuana business to largely use money. That makes the businesses the potential goal of robbers.
“Our entire industry is desperate for a solution,” mentioned Will Senn, founding father of Urbn Leaf, which operates marijuana dispensaries in San Diego.
“Being a cash business makes it hard to pay taxes (most agencies don’t accept cash), and it’s hard to pay our landlords. We need banks that will let us write checks.”
Last yr, Chiang appointed a blue-ribbon committee to look into the issue. The group got here again with suggestions on Tuesday. Its report says, “The state taxing agencies should work with the State Treasurer’s Office and financial institutions to contract with an armored courier service that will collect state tax and licensing payments made in cash from businesses in California, including cannabis businesses.”
The group views the concept of one among a number of steps that might finally lead the federal authorities to call banks a protected harbor for funds from the marijuana industries.
The group says an interim step may contain creating “a publicly owned or supported monetary establishment in California to serve the business.
“Such an establishment might need a broad mission to develop banking for underserved teams, together with the hashish business, or it is perhaps a narrowly targeted hashish monetary establishment primarily serving hashish producers, distributors, and retailers.”