Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Cannabis Permit Revocation topic
No spam. Unsubscribe anytime.
City council upholds revocation of Medicine Woman’s cannabis permit over unpaid taxes
Summary
Bellflower council voted unanimously to uphold the city manager’s revocation of Medicine Woman Group LLC’s cannabis business permit after staff told the council the business failed to remit audited taxes (about $57,000) and had additional unreported quarters, producing estimated liabilities in the low six figures; the council voted 5–0 to uphold the revocation.
The Bellflower City Council on June 22 upheld the city manager’s decision to revoke cannabis business permit CUP CU-CAN17-12 issued to Medicine Woman Group LLC, citing unpaid audited taxes and unpaid quarterly tax filings.
City staff summarized the administrative record and told the council the revocation followed an audit and several opportunities to resolve liabilities. “The revocation of the Medicine Woman’s CBP is fair and simple. The Medicine Woman continues to fail to comply with the city's cannabis regulations,” staff said, noting an audit finding of roughly $57,000 and additional unreported quarterly taxes that pushed estimated liabilities into the low six figures.
Edward Pinchiff, attorney for the Medicine Woman Group, urged the council to reverse the revocation. Pinchiff argued the city used an unusually aggressive process that treated the business as posing an imminent threat — forcing it to close during the appeal — and said the primary legal dispute concerns whether the city’s tax calculation improperly imposed tax-on-tax and taxed some non-cannabis items. “If the city is right, TMW will pay the taxes along with all of the interest, all of the penalties,” Pinchiff said. “If TMW is right, then the taxes aren't due.”
Council members pressed both sides for numbers and remedies. Staff estimated the audit and assessed amounts at about $57,000 as of June 1 and said interest and subsequent quarters could bring the total closer to $120,000–$137,000 depending on sales and reporting for April–June. When asked how the city would attempt collection, staff said the city could seek a tax lien against the business’s assets.
No members of the public offered testimony on this item. After the hearing, Councilmember Koops moved and the council voted 5–0 to uphold the city manager’s revocation of the Medicine Woman Group’s cannabis business permit (motion to uphold the city manager’s decision; roll call: Koops—Aye, Morris—Aye, Mayor Pro Tem Sanchez—Aye, Dutton—Aye, Mayor—Aye).
The council’s action preserves the city manager’s revocation; the appeal route remaining to the business is judicial review. Staff also noted the city had offered conditional resolutions or settlement options to the permittee that were not accepted.
What’s next: The council’s decision upholds the administrative revocation. The business may pursue a writ in superior court to challenge the tax determinations and the revocation procedure; city staff said the city had not been served with a writ as of the meeting.
