Welcome to The Scuttlebutt, powered by Armada Law Corp., where we share important, inspiring or interesting news related to the California cannabis, hemp or plant medicine industries. In today’s news……
Courtesy of Financial Regulation News
#cannabisindustry – “Auxier said there are four primary types of cannabis taxes that states and local governments deploy — and each has its plusses and minuses.
One is percentage-of-price taxes, which work like a general sales tax. This is the most popular, wrote Auxier, as 11 states use it while five others use it in addition to another tax.
While it is the easiest to administer, if the tax rate is not increased, revenue will slow or even drop as the retail price of cannabis falls.
The second is weight-based taxes, which are employed by five states. Cultivators generally weigh their product, set a tax rate, and remit the tax to the government. The author said this type of tax is generally not impacted by price, but they can be onerous for sellers.
The third is potency-based taxes, based on the level of tetrahydrocannabinol (THC), in the cannabis. So, products with a higher-TCH level would be taxed higher.
Finally, there is a general sales tax, which is used in 15 states. As Auxier points out, this is not a cannabis tax but is affected by the purchase price.”
#cannabislaw – “A California cannabis company tricked an investor into an $800,000 deal by making misrepresentations about cultivation and distribution licensing, a facility and land, a lawsuit filed in state court contends.
Seyed Milad Torabi of Fresno alleges in the Los Angeles County Superior Court suit that the cannabis company, Kavry Management LLC, and defendant Babak Arab “had no present or future intention” to make Torabi an official part of the company as promised under a 2021 investment agreement.
“Had Plaintiff Torabi known that the representations and warranties as herein alleged were false or that Defendant Arab had securitized the assets of Kavry for debts of a related entity that he alone owned or that he was using the facilities for Kavry for said entity, Plaintiff Torabi would never have purchased the Member Interest in Kavry or paid any money to Defendant Arab,” the complaint says…..
Torabi’s complaint targets Arab and Kavry with allegations of fraud, promissory fraud, rescission and breach of contract. He seeks damages of at least $800,000 plus interest.”
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