Tag Archives: Board of Equalization

Berkeley Patients Group pays fraction of tax bill

Cannabis being inspected at Berkeley Patients Group. Photo: Frances Dinkelspiel
Print Friendly

The state Board of Equalization and Berkeley Patients Group (BPG) have worked out a compromise that reduces the dispensary’s delinquent tax bill from $7.5 million to $49,500.

Despite selling millions of dollars in medical cannabis each year and paying its top executives close to $1 million in salaries, BPG told the state it could not afford to pay the taxes and interest it owed for the years 2004 to 2007, according to a document prepared by the Board of Equalization. At its Dec. 18-19, 2012, meeting, the board voted unanimously to accept a compromise payment of $49,500.  … Continue reading »

Tagged , , , , , , , , ,

Berkeley Patients Group owes $6.4 million in back taxes

BPGplantsIMG_9672.jpg.pagespeed.ce.lSfKDj1hbh
Print Friendly

Berkeley Patients Group (BPG), the city’s largest medical marijuana dispensary, owes more than $6.4 million in back taxes and interest, according to the state’s Board of Equalization (BOE). The BOE confirmed their original assessment of taxes at its meeting in Sacramento this week. Berkeleyside revealed the tax dispute earlier this month.

Elisabeth Jewel, the lawyer lobbyist representing BPG in the case, told Berkeleyside that the group will apply to the BOE’s “offer in compromise” program. “There’s no way that Berkeley Patients Group can pay $6 million in taxes,” she said. “The purpose of the offer in compromise program is to come up with a plan that keeps a taxpayer in business.”

Jewel said that the BOE made clear in its hearing this week that it wanted to find a way to keep BPG solvent. The BPG application will be made soon, according to Jewel. … Continue reading »

Tagged , , , , ,

Berkeley cannabis collectives slapped with huge tax bills

Front entrance to Berkeley Patients Group
Print Friendly

The state Board of Equalization is contending that the Berkeley Patients Group, one of the oldest and largest medical cannabis dispensaries in California, owes $6 million in back taxes, Berkeleyside has learned.

The board claims that the dispensary on San Pablo Avenue did not pay taxes on the medical marijuana it sold from July 2004 to June 2007 and now owes $4.4 million in taxes and about $1.6 million in interest.

The charges come on the heels of a September 2010 ruling in which the Board of Equalization determined that another Berkeley cannabis collective, Patients Care Collective, had to pay $639,000 for back taxes it owed from January 1, 2005 to September 8, 2008 on the sales of cannabis and marijuana cookies.

The Berkeley Patients Group, which has about 13,000 members and serves 800 to 1,000 patients each day, is contesting the charges, according to Elisabeth Jewel, whose firm Aroner, Jewel, & Ellis advises BPG on governmental regulations. Until February 2007, the laws regarding the collection of taxes for the sale of cannabis were murky, which is why the BPG did not pay, she said.

“There is no allegation of malfeasance in terms of collecting a tax and not paying it,” said Jewel. “The Berkeley Patients Group contends it was not clear to them that they had to pay sales taxes on what they consider medicine.”

The Board of Equalization will hold a hearing on the charges at its February 22-24 meeting in Sacramento. While the board would not officially confirm there is a claim pending against BPG, a spokesman did confirm the BPG hearing was on the agenda, which has not yet been made public. Berkeleyside learned about BPG’s late tax payments from a source close to the board, who asked not to be named.

Continue reading »

Tagged , , , , , , , ,