California Cannabis Industry Is Drowning In Debt: $732M Owed In Taxes, 72% By Companies Already Closed Down
Cannabis companies in California are facing a massive debt issue, with unpaid taxes totaling $732 million. The bulk of this debt, approximately 72%, is owed by businesses that have already shut down, posing a huge challenge to the state to recover these funds.
Greenwave Advisors analyzed data from the California Department of Tax and Fee Administration (CDTFA) and discovered that in addition to the debts from defunct companies, there is also $173 million in taxes on unlicensed cannabis sales. These illegal sales could represent about a quarter of the market, with an estimated total of $1.2 billion.
In 2023, the legal cannabis market in California reported $4.4 …