Medical marijuana money saturation in California
On payday, the Sacramento office of the California Internal Revenue Service is overwhelmed because people can pay their cannabis sales taxes in cash.
This is because medical marijuana dispensaries, as well as growers, distributors, and other cannabis-related businesses, can only accept cash payments. They are not allowed to issue checks, deposit money in financial institutions, or make credit card transactions.
Kimberly, the director of a dispensary, believes it is a problem to travel around the city carrying cash, which often amounts to large sums of dollars.
The California Board of Education (BOE) estimates that it collected about $200 million in cash payments last year, which cause strange problems, such as office windows not having slots large enough to fit the envelopes with the money.
-Money piled up on the tables
The Agency's 1.2-meter-high safe is striking both for its appearance, resembling the Wild West with a rotating wheel in front and a golden statue of Betty Boop on top, and for the fabric softener smell that often clings to the money accumulated on the tables, due to the fact that it is washed by depositors before being deposited.
California's recreational marijuana legislation will go to a referendum this year and is expected to generate an additional 900 million euros in taxes from retail, cash sales.
The Tax Agency is also working on short-term solutions, such as installing self-service kiosks in the city, similar to bank ATMs, and reaching agreements with banks to allow the Agency to use a secure back office to receive payments. They also mention having studied the Bitcoin system, but believe that no one truly understands it.