Sacramento Faces Lawsuit Over Allegedly Illegal MJ Business Fee

In #California, Sacramento faces legal action for allegedly imposing illegal fees on the city’s marijuana businesses. A lawsuit filed in the Sacramento County Superior Court by law firm Garner and Associates on behalf of a number of unidentified cannabis companies, takes issue with the state capital’s “#Neighborhood Responsibility Plan”, which charges licensed businesses approximately 1 percent of their gross #revenue. The proceeds are meant to be used to mitigate any negative impacts resulting from quote “#novel business activities”. The plaintiff argues that not only did #Sacramento overstep its authority with the levy, but that the #income has not been used for its intended purpose. They further claim the fees are repetitive since #marijuana companies already pay a local operations #tax equal to roughly 4 percent of their gross #receipts, which is 100 times higher than any other type of business in the city and generates #millions of dollars in annual revenue. The law firm is seeking an end to the 1 percent fee as well as refunds for companies participating in the suit. They are also inviting any other local, affected #businesses to join the legal challenge. #Sacramento officials have so far declined to comment on the matter.

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William Bradley

William Bradley

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