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San Diego Pushes New Rules for Untaxed Cannabis
San Diego city leaders passed a proposal for new licensing and enforcement measures to crack down on unregulated cannabis delivery businesses. San Diego city leaders say some cannabis businesses are evading local rules, and they're preparing to step in. The move marks a significant step toward addressing the growing issue of untaxed cannabis in the region.
A new proposal at City Hall aims to create fair regulations for cannabis delivery businesses operating in the city. Legal dispensaries argue that competition with the unregulated market has gone on for years, prompting one shop, A Green Alternative in Otay Mesa, to sue the City of San Diego over enforcement. Right now, legal dispensaries pay the city a 10% tax, putting untaxed cannabis delivery operations at a financial advantage.
Attorney Lance Rogers, who represents A Green Alternative, describes what his clients say is likely happening near their storefront.
"A typical customer will be parked in the parking lot, and someone will approach them, and I assume say something like 'Hey, do you want a better deal?' and then proceed to sell them illegal cannabis," Rogers said.
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