Last Tuesday, California passed Proposition 64 with fifty-six percent (56%) voting in favor of legalizing the recreational use of marijuana in California. Proposition 64 allows adults aged 21 years or older to possess and use marijuana for recreational purposes. The measure created two new taxes, one levied on cultivation and the other on retail sales. The cultivation tax is $9.25 … Read More
City of Eureka Passes Medical Marijuana Land Use Ordinance
On September 20th, the Eureka City Council voted 3-2 to allow medical marijuana businesses to operate within the city limits. The California Coastal Commission must still approve the planned changes to the municipal code and the local coastal plan, with implementation expected by the middle of next year assuming it is approved. The provisions will allow a variety of new business … Read More
Prescription Against A Public Entity: You Just Can’t Do It.
Janssen Malloy LLP represents clients involved in real property disputes. These disputes generally involve private landholders who are claiming rights in each other’s respective properties. But what happens when the litigant who a prescriptive easement is claimed against is a public entity? The short answer is it is impossible to claim a prescriptive easement over the lands of a public … Read More
Permitting Existing Cultivation Sites Under Humboldt County’s Medical Marijuana Land Use Ordinance
Under Humboldt County’s Medical Marijuana Land Use Ordinance (MMLUO), existing cultivator sites can be permitted. The permit path for existing cultivation sites depends on two things: the size of the existing grow, and the evidence demonstrating the grow was in existence prior to January 1, 2016. Existing grows 5,000 square feet or less can be permitted with a zoning clearance … Read More
The County’s Big Cleanup: Retirement, Remediate, and Relocate
Humboldt County’s recently passed Medical Marijuana Land Use Ordinance (MMLUO) includes a provision to encourage growers to come out of the hills and relocate medical marijuana cultivation sites from marginally productive and environmentally sensitive areas to parcels more suitable for agricultural production. Under Section 55.14.4 of the MMLUO, cultivation sites located on parcels zoned TC, FR, TPZ, U, RA, AG or … Read More
New Environmental Regulations on Cannabis Cultivation
Are you growing cannabis? By February 15, 2016, cultivators with 2000 square feet or more of cultivated area are required to enroll in a new water quality regulatory program with the North Coast Water Quality Control Board (NCWQCB). NCWQCB’s Order No. R1-2015-0023 (Order) includes enforceable requirements which cultivators need to become familiar with to ensure their operations do not impact … Read More
Proposed Local Zoning Regulations Regarding Medical Marijuana: What’s Being Proposed?
Changes are coming to local regulation of the medical marijuana industry. Both the Humboldt County Board of Supervisors and the Arcata City Council are both considering ordinances governing the cultivation, manufacturing, and retail distribution of medical marijuana here on the North Coast. In response to the enactment of SB 643, AB 266, and AB 243, Humboldt County released a draft … Read More
Ouch!! Federal Court Holds That Marijuana Dispensary May Not Deduct Business Expenses When Determining its Income for Income Tax Purposes
In Olive v. Commissioner of Internal Revenue 792 F. 3d 1146 (7/9/15), the Ninth Circuit recently upheld the decision of the U.S. Tax Court which precluded a marijuana dispensary from deducting any ordinary or necessary business expenses when determining its income for income tax purposes. The Vapor Room Herbal Center is a medical marijuana dispensary in San Francisco owned by Martin Olive. … Read More
Series of Medical Marijuana Bills Pass Legislature
On September 11, 2015, the California Legislature passed a series of bills creating a comprehensive regulatory framework for the Medical Marijuana Industry in California. Amended versions of Senate Bill 643, Assembly Bill 266, and Assembly Bill 243 passed and have been sent to the Governor’s Office for his signature. The series of bills creates a licensing framework for medical marijuana … Read More
The Phantom Income Issue
When starting a new business, the question that every new venture faces is how to fund the operations of the business. Often times, one person agrees to contribute money, while the other person agrees to contribute services. This can lead to an issue known as “phantom income.” Presently, the tax code places a value on capital contributed to a business, … Read More