Damned if you do, damned if you don’t. San Francisco suspends tax on cannabis retailers to help them compete with illegal dealers after looters stole $5million of products from 15 dispensaries in a month

Oakland Police Chief LeRonne Armstrong told reporters that ‘hundreds’ of vehicles targeted marijuana stores in Oakland last month, firing 175 shots and stealing about $5million worth of products.

City supervisor Rafael Mandeman told the San Francisco Examiner the legal cannabis market is helping create jobs and offering regulated products to customers.

But he said: ‘Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products.

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From another source:

“Cannabis businesses create good jobs for San Franciscans and provide safe, regulated products to their customers,” Mandelman said in a statement. “Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products. Now is not the time to impose a new tax on small businesses that are just getting established and trying to compete with illicit operators.”

Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cannabis tax rates were directly linked to illegal cannabis sales.

In addition to the illegal sales, increased theft is also creating problems for cannabis retailers.

In a recent case, on Nov. 16, an armed group stole thousands of dollars’ worth of merchandise from cannabis retailer BASA, located on Grove Street. The burglary was the fifth at the location, according to Mandelman’s office.

sfexaminer.com