Cal City without $600K in back taxes from cannabis

Cal City out to collect $600K in back taxes for cannabis for the most recently quarterly payment, a report shows.

• Inge Elmes, appointed as the cannabis tax administator last month, says Cal City is "ready to take further action if necessary," when it comes to those who owe taxes.
• Cal City mayor pro tem Ron Smith says maximum enforcement is needed when dealing with cannabis issues.
• Herbert Gonzalez, a Cal City cannabis business owner, says he's frustrated by frequent inspections and has put his property up for sale.

BROADCAST TRANSCRIPT:

California City is turning up the heat on many cannabis business owners... when it comes to enforcing the law.

While the city says it's a work in progress... one entrepreneur says it's driving him out of business.

I'm Steve Virgen, your neighborhood reporter.

"This community, seven years ago, was told that cannabis taxes were going to get us off the special tax. Projections by a staff member were 11 million a year," said Ron Smith, the Cal City Mayor Pro Tem.

Cal City will be fortunate to gain 1 million dollars in cannabis taxes this year, Smith added. Already, 600,00 dollars in back taxes is owed to the city for the most recent quarterly payment.

That's according to a report from Inge Elmes. She began as the city's cannabis tax administrator last month. She is also the O-H-V manager.

"Until we see taxes coming in, we'll see whether or not her efforts are going to be supported," Smith said.

The funds from the taxes can be used for various purposes, including youth programs and law enforcement, according to Prop 64.

Cal City has been without a tax administrator for over the past year. Elmes took on that role while she was acting city manager last year. She says she devotes about 20 hours per week to cannabis-related issues.

She declined to go on camera but provided a statement as to why she took on the new role.

"The city is in a very dire position financially and with that comes a heavy responsibility to do what is necessary within our abilities to move the city forward."

She said letters have been issued to those with delinquent taxes.

But, quote "the city is ready to take further action if necessary."

"How is the city gonna maintain itself, and, how are we going to provide and be the heroes if you don't allow us?"

Herbert Gonzalez, a cannabis business owner, says he's upset about paying taxes and dealing with frequent inspections. I also spoke to him in March when he was cited for having a service dog on his property. The Hazel the dog issue hasn't been resolved, he said and added that he has put his property up for sale because he's so frustrated.

"The city is adamantly pursuing money and if they would allow us just to operate and allow us to ourselves make money then we don't have no problem paying," Gonzalez said.

"It's irresponsible to not do maximum enforcement in all things cannabis," Smith said.

While cannabis is here to stay in California City... Gonzalez says it's just a matter of making it work for everyone in the industry.

I'm Steve Virgen, your neighborhood reporter.

Stay in Touch with Us Anytime , Anywhere :

• Download Our Free App for Apple and Android
• Sign Up for Our Daily E-mail Newsletter
• Like Us on Facebook
• Follow Us on Instagram
• Subscribe to Us on YouTube