Legal Question in Tax Law in California

I live in California... where many citizens grow marijuana. Our newspaper wrote that it is not illegal for growers to sell to a dispensary, but I'm wondering what, if anything, is in place to ensure that the income generated from these transactions are reported and taxed upon. Do the dispensaries have any legal obligations? Our citizenry is tormented by this plight. Awful skunk smells permeate our community for 5 months of the year... crime increases... etc. I believe this question touches on both tax law and criminal law, so please address both.


Asked on 10/22/10, 9:41 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

I imagine the tax authorities will figure out a way to collect marijuana taxes. I took the Jack Daniels tour once and the pipes that carry the hot, newly distilled whiskey from the still to the barreling house are padlocked by the federal Bureau of ATF to keep Jack honest. Presumably the pot revenue officers will use aerial photos and send out tax bills.

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Answered on 10/27/10, 10:00 pm


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