California City council upholds $75,744 cannabis tax finding, allows 12‑month payment plan

The California City Council on April 22 upheld a tax administrator’s June 5, 2024, Notice of Violation assessing $75,744 in delinquent cannabis business tax, penalties and interest against California City Cannabis Company LLC (C4) and directed city special counsel to prepare findings and a resolution. Council also authorized a repayment schedule allowing the amount to be paid in quarterly installments not to exceed 12 months.

The council’s decision follows an appeal hearing at which C4 representatives asked the council to waive penalties and interest and allow an extended payment plan, saying the business had invested heavily in California City and did not intend to evade tax obligations. “We don’t have the revenue generation to be able to pay this in a lump sum,” appellant Eric Sanders told the council, adding C4 had invested “in excess of $2,000,000” in its facility and was continuing to pay quarterly going forward.

Why it matters: The case illustrates tensions that can arise when the city enforces a voter‑approved cannabis tax after a…