Another Bust in Colorado Where Pot Is Legal But Evading Taxes Is Not

The Colorado Attorney General announced another round of indictments, this time over marijuana tax evasion. Only recently the state indicted 74 individuals and facilities that were growing marijuana legally but shipping it illegally out of state. That was the largest marijuana black market bust in the state’s history.

In this case, thirteen people were charged with allegedly running a criminal enterprise that distributed 200 pounds of marijuana. Those indicted include the owners and others affiliated with a head shop called Hoppz’ Cropz in Colorado Springs. They allegedly sold small items like a lighter worth 5 cents for $15 and gave away an ounce of marijuana for free, and evaded paying fees associated with the retail marijuana licensing system in Colorado and avoided paying excise taxes.

Hoppz’ Cropz owners, managers, and employees also allegedly avoided paying wage withholding taxes by receiving “under the table” wages. Managers allegedly told employees to tell government officials who might inquire that they were volunteers who worked for free.

At the announcement of the indictments, a district attorney said marijuana is the gateway drug for murder. Colorado Springs had 22 homicides in 2016. Eight were directly connected to illegal marijuana grows, he said. Local authorities are overwhelmed trying to stop marijuana crimes. Colorado pot is pouring out of the state, and is worth more on New York streets than in Denver, he added. Homelessness has gone up 50 percent a year since the state legalized.

Read KKTV.com story here.

Source: Email from National Families In Action The Marijuana Report The Marijuana Report.Org August 2017

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