Catalyst sues Calif. tax authority

Catalyst Cannabis sued California’s tax regulator alleging the agency abused its emergency rulemaking authority to overtax dispensaries and consumers. The result could have significant implications for pot taxes in the state.

The retailer’s suit against the California Department of Tax and Fee Administration (CDTFA) involves differing interpretations of how much of a cannabis purchase is subject to the the state’s 15% cannabis excise tax.

At most California dispensaries, a vape pen that retails for $40 comes with a $6 excise tax, (15% of $40). Long . . .