In a move that brought Old Guard California Cannabis a bittersweet assessment, the Cannabis Authority announced on January 1, 2022, that it would waive licensing fees for cannabis companies affected by the Cannabis War. Prior to 2017, many operators experienced law enforcement persecution, including confiscation of inventory. For those who refused to admit defeat and stayed in or returned to the cannabis business, this drastic fee waiver feels like an apology.
As we move into the second year of equity fee waivers, it is important that all cannabis companies review their history and current operations to see if they qualify for this significant cost reduction. Cannabis businesses may also qualify based on the income level and residency of eligible owners instead of arrest or conviction. Since this is a fee waiver for small businesses, it also requires a maximum annual revenue level of $5 million.
For Eligible Stock Licensees who have already received a fee waiver, it is important to note the following: This is an annual processand must continue to submit requests for capital fee reductions at least 60 calendar days prior to the annual expiration of the license.
Who is eligible for the stock-based compensation exemption?
profits: Your cannabis business must have total annual revenues of $5 million or less.
Stock ownership: At least 50% of your business is Only Of these three characteristics,
- have ever been convicted or arrested for marijuana, or
- Even if your income level is low, or
- Reside in an area affected by cannabis criminalization (as defined by the DCC)
arrest or conviction
DCC requires that the individual has been convicted or arrested for a cannabis offense by November 8, 2016. The offense must be sale, possession, use, manufacture and cultivation. An impartial individual may also be eligible if a close relative was convicted or arrested for a cannabis offense and the impartial individual himself/herself lived in a California county with a drug arrest rate higher than the state’s average drug arrest rate. There is a possibility.
low income level
To qualify for the income level, a fair individual’s household income must be 60% or less of the median income in the area (see Household Income). DCC chart showing counties, household size, and eligible income levels) or prove your eligibility for financial assistance such as CalFresh, Medi-Cal, or additional security income.
Living in an area affected by cannabis criminalization
If an impartial individual seeks residency status, they must have lived at least five years in a qualifying location between 1980 and 2016. The location must have a higher than state average drug arrest rate and be in the top 25% of unemployment rates nationally. and poverty. DCC provides interactive functionality. map Find out which locations meet these requirements.
worth the effort
Again, the business must have annual gross revenues of less than $5 million and at least 50% of ownership must include arrest or conviction for marijuana, low income level, and residency in an affected area. Must contain only one of the three unfavorable characteristics.
Applying for a stock fee waiver certainly takes time, but the savings from zero licensing fees is definitely worth it. In addition, qualifying for the stock tax exemption entitles companies to other state stock tax benefits, including the California Stock Tax Credit. (See article on CETC) here. )