(a) The laboratory shall analyze a sample of cannabis or cannabis product to determine whether microbial impurities are present. (b) The laboratory shall report the result of the microbial impurities testing by indicating “pass” or “fail” on the COA. (c) A sample of inhalable cannabis or inhalable cannabis product shall be deemed to have passed the microbial impurities testing if all of the following conditions are met: (1) Shiga toxin–producing Escherichia coli is not detected in 1 gram; (2) Salmonella spp. is not detected in 1 gram; and (3) Pathogenic Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus are not detected in 1 gram. (d) A sample of other cannabis or cannabis product shall be deemed to have passed the microbial impurities testing if both the following: (1) Shiga toxin–producing Escherichia coli is not detected in 1 gram, and (2) Salmonella spp. is not detected in 1 gram. (e) If a sample fails microbial impurities testing, the batch from which the sample was collected fails microbial impurities testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
Archives for May 2019
Your QuickBooks Online Pricing Plans are Changing
The following pricing, plus applicable taxes, will take effect for your existing subscriptions (if any) on your next billing date on or after July 1, 2019. Simple Start $20/mo $215/yr Essentials $40/mo $430/yr Plus $70/mo $755/yr |
Any accounts created on or after January 1, 2019 will be adjusted to new pricing beginning September 1, 2019 and you will be notified separately about these changes in advance.
Our records also show that one or more of your accounts were selected for QuickBooks Online Advanced trials1. If you have not chosen to upgrade these by the end of their trials, they will automatically revert to their QuickBooks Online Plus plans and adjust to the list price on or after July 1, 2019.
You can view the billing details for each account by signing into Quickbooks Online, selecting the account you’d like to check, visiting Account and Settings and selecting Billing & Subscription.
QuickBooks helps small businesses find over $3,500 in annual tax savings2 and save over 40 hours per month3 on average. Price increases enable us to constantly reinvest in our ecosystem of products and accelerate innovations based on customer feedback.
You can visit our blog to learn more. Here are some highlights:
- Track labor costs by project4: Now easily see payroll and time costs in your projects to understand your true profitability
- Direct Bank Feeds5: Establish bank connections that are more reliable6 to automatically keep your transactions updated
- Sales Tax Enhancements: See taxable and non-taxable sales by agency with the new sales tax liability report
- Coming Soon to QuickBooks Mobile7: Capture and automatically match receipts to expenses and much more8
For more information on the price change, visit our FAQ page.
If you have any questions or would like to discuss the option that’s best for you, give us a call at 760-322-4622. We’re happy to help you choose a great package as a Diamond Level Pro Advisor.
BUREAU OF CANNABIS CONTROL;§ 5719. Residual Pesticides Testing
(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis or cannabis product to determine whether residual pesticides are present. (b) The laboratory shall report whether any Category I Residual Pesticides are detected above the limit of detection (LOD) and shall report the result of the Category II Residual Pesticides testing in unit micrograms per gram (µg/g) on the COA. The laboratory shall indicate “pass” or “fail” on the COA. (c) The laboratory shall establish a limit of quantification (LOQ) of 0.10 µg/g or lower for all Category I Residual Pesticides. (d) The sample shall be deemed to have passed the residual pesticides testing if both of the following conditions are met: (1) The presence of any residual pesticide listed in the following tables in Category I are not detected, and (2) The presence of any residual pesticide listed in the following tables in Category II does not exceed the indicated action levels. (e) If a sample fails residual pesticides testing, the batch from which the sample was collected fails pesticides testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
California’s marijuana industry is a mess, new data shows
On the surface, the marijuana industry looks like the greatest thing since sliced bread to hit Wall Street. We’re talking about an industry that’s been collecting tens of billions of dollars under the table for decades and is now stepping into the light of legality. After generating $12.2 billion in worldwide revenue in 2018, some Wall Street investment firms foresee legal weed sales hitting up to $75 billion a year globally by 2030.
Last year, we witnessed a number of firsts for the green rush. Canada lifted the veil on nine decades of adult-use prohibition by becoming the first industrialized country to legalize recreational marijuana. We also saw a handful of U.S. states wave the green flag on medical cannabis, and California, the fifth-largest economy in the world by gross domestic product, open its doors to adult-use consumers.
Superficially, everything should be going well for the marijuana industry. Unfortunately, that’s not the case. Supply-side issues have constrained sales in Canada, while California’s marijuana industry is an absolute mess, according to new data from the state.
California’s pot industry is a disaster in the early going
Last week, the office of Gov. Gavin Newsom (D-Calif.) released state budget documents showing that his administration has cut cannabis tax revenue projections by a whopping $223 million through 2020. Mind you, California has already reduced expectations for cannabis tax revenue on numerous occasions.
The latest budget documents, according to USA Today, call for $288 million in excise tax revenue from cannabis in fiscal 2019, and $359 million in fiscal 2020. Just for some context, estimates in 2016 following the passage of Prop 64 were calling for more than $1 billion in annual excise tax revenue not long after the full ramp-up of the industry. Thus, California’s marijuana industry isn’t even living up to a third of its long-term potential, according to these new state projections.
How could such a blatant miscalculation by state regulators be possible? Three reasons.
First, regulatory red tape is making life in the Golden State difficult if you’re a cannabis business. The state has been slow to review and approve retail and distribution licenses. There’s been little issue getting supply in place, but growers have struggled to get what they have grown into dispensaries in California.
The second problem is that California is absolutely taxing the daylights out of its consumers. Aside from having the highest base sales tax of any state in the country, California imposes a 15% excise tax on recreational weed, as well as a cultivation levy of $9.25 per ounce on cannabis flowers, or $2.75 per ounce on cannabis leaves. All told, consumers could be on the hook for an aggregate tax of up to 45%, depending on the city. These added costs make it really difficult for legal channels to compete with the black market.
And thirdly, blame the black market. Illicit growers don’t have to wait for sales permits or cultivation licenses, won’t pay an excise tax, and won’t have to cover state income taxes on their under-the-table profits. The cannabis black market has been around for a long time, and it’s going to take aggressively low tax rates to reduce its stranglehold on California’s cannabis market.
California’s woes could hit these marijuana stocks the hardest
In terms of sheer sales potential, California is still the cannabis king. But given the amount of premium already priced into the industry by Wall Street and investors, these early-stage hiccups could be bad news for pot stocks with a clear focus on the California market.
Origin House (NASDAQOTH:ORHOF), which is in the process of being acquired by vertically integrated multistate cannabis company Cresco Labs in an all-stock deal valued at $823 million(when announced), would be one candidate to take it on the chin. Origin House has been actively acquiring companies with cannabis distribution licenses in California and is angling to become a niche middleman. However, with the black market remaining more dominant than expected, the amount of legal weed working its way from licensed producers to dispensary stores should be lower than forecast. That’s potentially bad news for Origin House’s bottom line, and Cresco Labs, which is paying a king’s ransom to acquire Origin House.
Another possible loser is upscale cannabis dispensary operator MedMen Enterprises(NASDAQOTH:MMNFF). Even though MedMen is best known for its California dispensaries generating sales per square foot that are on par with Apple stores, the company’s preliminary third-quarter sales hint at a sizable slowdown. MedMen notes that organic sequential sales growth for its 10 Southern California locations (open during the fiscal third quarter) was a meager 5%. That’s not great news for a multistate dispensary operator that’s been losing money hand over fist.
Long story short, California is going to have to get serious about adjusting its tax policy if it has any chance of uprooting the state’s mammoth black market. Until we see serious tax policy changes, California could be more trouble than it’s worth to investors.
Taxpayer Bill of Rights provides protections
All taxpayers have fundamental rights when working with the IRS. The agency outlines them on IRS.gov and in Publication 1. To help taxpayers understand their rights, here is a list of them with a brief description of each one:
- The right to be informed. Taxpayers are entitled to clear explanations of the laws and IRS procedures on all tax forms, instructions, publications and notices. They have the right to know about IRS decisions affecting their accounts and receive clear explanations of the outcomes.
- The right to quality service. Taxpayers have the right to receive prompt, courteous and professional assistance in their interactions with the IRS. They have the right to be spoken to in a way they can easily understand. Also, to speak to a supervisor about inadequate service.
- The right to pay no more than the correct amount of tax. Taxpayers have the right to pay only the amount of tax legally due. This includes interest and penalties.
- The right to challenge the IRS’s position and be heard. Taxpayers have the right to raise objections in response to formal IRS actions or proposed actions. They also have the right to expect the IRS to consider their timely objections promptly and fairly and to receive a response if the IRS does not agree.
- The right to appeal an IRS decision in an independent forum. Taxpayers are entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties.
- The right to finality. Taxpayers have the right to know the maximum amount of time they have to challenge an IRS position.
- The right to privacy. Taxpayers have the right to expect that any IRS inquiry, audit or enforcement action will comply with the law and be no more intrusive than necessary.
- The right to confidentiality. Taxpayers have the right to expect that any information they provide to the IRS will not be disclosed unless authorized by the taxpayer or by law. Taxpayers have the right to expect appropriate action will be taken against employees, preparers, and others who wrongfully use or disclose taxpayer information.
- The right to retain representation. Taxpayers have the right to retain an authorized representative of their choice to represent them in their dealings with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer Clinic if they cannot afford representation.
- The right to a fair and just tax system. Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their case. Taxpayers have the right to receive assistance from the Taxpayer Advocate Service if they are experiencing financial difficulty. They can also contact the Taxpayer Advocate Service if the IRS has not resolved a tax issue properly and timely through its normal channels.
BUREAU OF CANNABIS CONTROL;§ 5718. Residual Solvents and Processing Chemicals Testing
(a) The laboratory shall analyze a sample of cannabis product to determine whether residual solvents or processing chemicals are present. (b) The laboratory shall report the result of the residual solvents and processing chemicals testing in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA. (c) The laboratory shall establish a limit of quantification (LOQ) of 1.0 µg/g or lower for all Category I Residual Solvents or Processing Chemicals. (d) The sample shall be deemed to have passed the residual solvents and processing chemicals testing if both of the following conditions are met: (1) The presence of any residual solvent or processing chemical listed in the following tables in Category I is not detected, and (2) The presence of any residual solvent or processing chemical listed in the following tables in Category II does not exceed the indicated action levels. (d) If a sample fails residual solvents and processing chemicals testing, the batch from which the sample was collected fails residual solvents and processing chemicals testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code
It’s summertime…and these tips can help make livin’ easy for teens with jobs
With summer almost here, many students will turn their attention to making
money from a summer job. Whether it’s flipping burgers or filing documents, the
IRS wants student workers to know some facts about their summer jobs and taxes.
Not all the money they earn will make it to their pocket because employers must
withhold taxes from their paycheck. Here are some tax tips young individuals
should know when starting a summer job.
New employees:
Employees – including those who are students – normally have taxes withheld
from their paychecks by their employer. When anyone gets a new job, they need
to fill out a Form W-4, Employee’s Withholding Allowance Certificate.
Employers use this form to calculate how much federal income tax to withhold
from the new employee’s pay. The Withholding Calculator on IRS.gov can help a taxpayer fill
out this form.
Self-employment:
Students who do odd jobs over the summer to make extra cash are self-employed. This include jobs like baby-sitting or lawn
care. Money earned from self-employment is taxable, and self-employed workers
may be responsible for paying taxes directly to the IRS. One way they can do
this is by making estimated tax payments during the year.
Tip income:
Students working as waiters or camp counselors who earn tips as part of their summer income should know tip
income is taxable. They should keep a daily log to accurately report tips. They
must report cash tips to their employer for any month that totals $20 or more.
Payroll taxes: This tax pays for benefits under the Social Security system. While students may earn too little from their summer job to owe income tax, employers usually must still withhold Social Security and Medicare taxes from their pay. If a student is self-employed, Social Security and Medicare taxes may still be due and are generally paid by the student.
Reserve Officers’ Training Corps pay: If a student is in an ROTC program, and receives pay for activities such as summer advanced camp, it is taxable. Other allowances the student may receive – like food and lodging – may not be taxable. The Armed Forces’ Tax Guide on IRS.gov provides details.
BUREAU OF CANNABIS CONTROL;§ 5718. Residual Solvents and Processing Chemicals Testing
(a) The laboratory shall analyze a sample of cannabis product to determine whether residual solvents or processing chemicals are present. (b) The laboratory shall report the result of the residual solvents and processing chemicals testing in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA.
(c) The laboratory shall establish a limit of quantification (LOQ) of 1.0 µg/g or lower for all Category I Residual Solvents or Processing Chemicals. (d) The sample shall be deemed to have passed the residual solvents and processing chemicals testing if both of the following conditions are met: (1) The presence of any residual solvent or processing chemical listed in the following tables in Category I is not detected, and (2) The presence of any residual solvent or processing chemical listed in the following tables in Category II does not exceed the indicated action levels.
(d) If a sample fails residual solvents and processing chemicals testing, the batch from which the sample was collected fails residual solvents and processing chemicals testing and shall not be released for retail sale.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.
The 3 best marijuana stocks to buy right now
Since their inception, marijuana stocks attracted significant attention. Due to both investment sentiment – and let’s face it, raw emotions – the cannabis sector absolutely skyrocketed. But now, the segment is attracting attention for failing to live up to analysts’ expectations. Is the honeymoon phase over for weed?
Hardly! While cannabis firms have produced some disappointing results during earnings season, that’s no reason to abandon them. For one thing, the resurgent U.S.-China trade war is incredibly favorable for marijuana stocks to buy. Prolonged tensions will almost surely cause us economic damage. An easy fix here is to legalize weed and fully open the door to a multi-billion dollar industry.
Another reason to stay the course with marijuana stocks to buy is the medicinal-cannabis market. Currently, 33 states have legalized medical marijuana, which is indirectly an indictment against the pharmaceutical industry. As I’ve argued many times before, pharmaceuticals must take at least some responsibility for the opioid crisis. This story alone has converted many people who have realized the benefits of all-natural treatments.
Moreover, medical marijuana is becoming a popular and potentially profitable exported good. We all know that progressive Europe is receptive to cannabis-based therapies. But more shocking is that conservative Asian countries notorious for their draconian anti-drug policies have demonstrated tolerance. Thailand became the first Southeast Asian country to legalize medical marijuana, while South Korea is the first East Asian country to jump onboard.
No matter how you look at it, this development strongly benefits the “botanical” industry. Here are the best three marijuana stocks to buy right now.
Aurora Cannabis (ACB), Caopy Growth (CGC) &
Hexo (HEXO)
Special Thanks to
Marijuana News and 42oIntel for content share
BUREAU OF CANNABIS CONTROL;§ 5717. Moisture Content and Water Activity Testing
§ 5717. Moisture Content and Water Activity Testing (a) The laboratory shall analyze a sample of cannabis to determine the level of water activity and the percentage of moisture content. (b) A cannabis sample shall be deemed to have passed water activity testing if the water activity does not exceed 0.65 Aw. The laboratory shall report the result of the water activity test on the certificate of analysis (COA) and indicate “pass” or “fail” on the COA. (c) A cannabis sample shall be deemed to have passed moisture content testing if the moisture content does not exceed 13.0%. The laboratory shall report the result of the moisture content test in percentage on the COA and indicate “pass” or “fail” on the COA. (d) The laboratory shall analyze edible cannabis products to determine the level of water activity. A solid or semi-solid edible cannabis product shall be deemed to have passed water activity testing if the water activity does not exceed 0.85 Aw. The laboratory shall report the result of the water activity test on the COA and indicate “pass” or “fail” on the COA. (e) If a sample fails moisture content testing, the batch from which the sample was collected fails moisture content testing and shall not be released for retail sale. (f) If a sample fails water activity testing, the batch from which the sample was collected fails water activity testing and shall not be released for retail sale. Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104 and 26110, Business and Professions Code.