Costa Mesa’s Illegal Cannabis Dispensaries Could Be Committing Tax Fraud: Mayor
As Costa Mesa prepared to move forward with its retail cannabis plans, its mayor called out illegal dispensaries operating within the city.
Speaking during a special study session on Feb. 23, Mayor Katrina Foley said that under-the-table marijuana dispensaries could be committing tax fraud.
“They [customers] are paying sales tax; it’s not getting collected and sent to the government agencies,” Foley said. “It’s just getting pocketed. In most instances they’re not paying their employees properly, they don’t have workers comp or unemployment. Those employees are not cared for as well.”
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Former Costa Mesa City Councilman John Stephens will return to public service after being appointed Tuesday to the Planning Commission.
Stephens left office in December following an unsuccessful reelection campaign in the city’s 1st Voting District.
Council members were tasked with filling four open seats on the seven-member commission, including Districts 1, 2 and 6 and one at-large position, from among 27 candidates.
Districted-seat appointees are first nominated by their district equivalent on the City Council and then voted on by the entire panel and appointed upon majority approval. The mayor is responsible for nominating a candidate for the at-large position, subject to the same approval process.
Costa Mesa Receives Outstanding Credit Rating Amid Pandemic
Costa Mesa, California, received an impressive credit rating during the most recent fiscal year, despite challenges brought on by the ongoing COVID-19pandemic.
The city received an AA+ rating from Standard and Poor’s (S&P) for the 2019–20 fiscal year, which ended June 30, for its 2017 Lions Park Project bonds.
The Lions Park Project is a series of improvements in the city’s infrastructure that includes building the new Donald Dungan Library and event space for public use.
Costa Mesa issued bonds for the Lions Park Project from the state, and repaid them with revenue generated from the project, to receive the rating.