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California auctions bongs from pot shops owing millions in taxes

In a recent development, the state of California revealed that 10 Los Angeles marijuana dispensaries have accumulated a staggering $14.4 million in unpaid taxes. In an attempt to recover these fees, the state resorted to holding a public auction to sell off property seized from these businesses.

However, the outcome of the auction was far from what was expected, with officials reporting that only $2,075 was generated from the sale. This disappointing result sheds light on the challenges that authorities face in cracking down on tax evasion in the cannabis industry.

Out of the 10 dispensaries involved, nine were found to be operating illegally, while one was a legally established business that had fallen behind on tax payments, as stated by the California Department of Tax and Fee Administration in a news release detailing the auction proceedings. This marked a significant milestone for the agency, as it was the first time they had resorted to auctioning off seized property from law enforcement raids to recoup unpaid taxes.

Collaborating with the California Highway Patrol, the agency put up items such as glass pipes, bongs, TVs, furniture, and various office supplies for sale at the auction held in Los Angeles on Feb. 16. The seized goods were divided into 10 lots, all of which were successfully sold off, with many items being listed in “as is” condition.

Nick Maduros, the director of the tax and fee agency, highlighted the significance of seizing and auctioning property from non-compliant cannabis businesses as a means to reclaim taxes owed to the state. This proactive approach is aimed at deterring illicit cannabis activities and creating a level playing field for legitimate businesses that diligently fulfill their tax obligations.

According to the agency, the year 2022 saw a substantial amount of $90 million worth of products and cash seized from businesses during 2,200 inspections conducted throughout the state. As part of the regulatory framework, legal cannabis establishments in California are mandated to levy a 15% excise tax on their sales to customers.

For the year 2023, California reported generating over $621 million in excise tax revenue and more than $461 million in sales tax revenue, underscoring the significant financial contributions made by the cannabis industry to the state’s economy. The data is readily available on the California Department of Tax and Fee Administration website, providing transparency and insight into the revenue generated through cannabis taxation.

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University of Wisconsin-Milwaukee and Protesters reach an agreement to dismantle encampment

Protesters at the University of Wisconsin-Milwaukee have agreed to end their pro-Palestinian encampment following an agreement reached with the school, university officials announced on Sunday. The encampment, which had been in place for two weeks, will be dismantled by Tuesday, marking the end of what was believed to be the last standing encampment at a Wisconsin college.

University officials had allowed the encampment to remain on a patch of lawn between Mitchell Hall and a busy thoroughfare on the campus’s southern boundary, opting not to involve law enforcement. This approach differed from the response at the University of Wisconsin-Madison, where police were called in to remove tents after negotiations fell through. Despite initial efforts to disband the encampment, Wisconsin-Madison eventually reached an agreement with protesters to voluntarily dismantle the camp prior to commencement ceremonies.

Chancellor Mark Mone of Wisconsin-Milwaukee stated last Wednesday that the university had exhibited “the widest possible amount of patience and restraint.” However, he also cautioned that patience was wearing thin and hinted at potential action by the school. Following discussions with the UWM Popular University for Palestine Coalition, the university agreed to advocate for a cease-fire between Israel and Hamas, condemn the destruction of schools and universities in Gaza by Israeli forces, and hold meetings with protest leaders regarding university investments.

Additionally, the university pledged to urge the Water Council, a Milwaukee organization of water technology companies, to sever connections with two Israeli government-owned entities, Mekorot and the Israel Innovation Authority. Chancellor Mone serves as the treasurer on the Water Council’s board of directors.

In return for these commitments, the protesters agreed to dismantle the encampment beginning on Sunday and completing the process by Tuesday. They also agreed not to disrupt the university’s commencement ceremonies scheduled for Sunday. In a statement, the protesters expressed their satisfaction with the agreement, stating, “After hard fought edits and careful consideration by the coalition, we determined we had obtained all possible benefits from the encampment.”

The resolution of the encampment at the University of Wisconsin-Milwaukee represents a successful outcome of negotiations between university officials and protesters. By reaching a compromise that addresses the concerns of both parties, a peaceful resolution has been achieved, allowing for the encampment to be taken down without incident.

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