Thursday, April 5, 2018

King Solomon, Illinois Cash Stash?


How will Illinois track and collect sales taxes on marijuana cash sales?

Two articles in the Chicago Tribune make me wonder if marijuana sellers for both medical and recreational marijuana prefer cash sales to avoid paying taxes.
One article titled, Synthetic pot users death toll now two: 3 arrested, reports that during the arrest a man was walking out of the store that was selling the illegal marijuana with a bag of cash totaling $280.000.
Amazing that in a Lawndale area of the city which is basically a low rent district, that somehow the local customers have enough money to buy marijuana, while at the same time local Public Schools provide breakfast free for kids because it the Schools didn’t, some kids might go to school hungry.
The other article titled, Medical Marijuana Industry in Illinois losing its main bank, reports that more legal medical marijuana sellers will have to deal in cash sales.
What’s My Point?
Anyone with a little moxie knows that when a sale is made in cash in Illinois, there is no  certain way to track and collect actual sales taxes.
I will leave it up to your imagination how many sellers will report all the purchases made in cash once Illinois passes a law to legalize recreational marijuana.
Just think how much hidden cash from drug sales is floating around when one store in a low rent area in a Chicago neighborhood is caught with a bag in excess of a quarter-million dollars.
The Bank  is concerned about being subject to Federal government regulators scrutiny because they are handling marijuana seller accounts to service the present status of legalized medical marijuana.
King Solomon
25 But if you punish the guilty,
things will go well for you,
and you will prosper. (Proverbs 24:25)
In My Opinion
If you are wondering how this proverb relates to Illinois, read the last verse above and consider that Illinois now is over 120 billion dollars in debt, and that sure is no indication of being prosperous.
You Decide
I wonder how much sales taxes will wind up as a tax payment account when both legalized and recreational marijuana is sold in a cash transaction in Illinois?
I also wonder how the other States such as, California, Oregon, Colorado, etc.  where marijuana sales are legalized are faring with actual tax payments based on actual sales made in cash?
Source Links

No comments:

Post a Comment