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.”