The state of California has identified 10 Los Angeles marijuana dispensaries that owe $14.4m in taxes. In an attempt to recover these fees, a public auction was held, but it only managed to generate $2,075. Nine of the dispensaries were operating illegally, while one was a legal business with outstanding tax payments. This marked the first time that personal property seized during law enforcement raids was auctioned off to recover owed fees. The auction, held in Los Angeles, saw the sale of various items, including glass pipes, TVs, furniture, and office supplies. Nick Maduros, director of the state’s tax and fee agency, stated that seizing and auctioning property from non-compliant cannabis businesses is a means to collect taxes owed to the state. The agency aims to discourage unlicensed cannabis activities and level the playing field for legitimate businesses. In 2022, $90m-worth of products and cash were seized from businesses during inspections. California generated over $621m in excise tax and $461m in sales tax in 2023
