Cannabis Seller Settles California Sales Tax Suit for $200,000

The operator of a medical cannabis dispensary agreed to settle a lawsuit accusing California of ignoring its own audit and overestimating the vendor’s sales tax liability for $200,000.

The Monday stipulation said the parties wished to “avoid the expense, inconvenience, and uncertainty of litigation.” Judge Maurice A. Leiter dismissed the complaint in a separate order filed the same day.

• MMD Inc. said the California Department of Tax and Fee Administration relied on a faulty “observation test” audit of the 2010-2012 period
• The CDTFA disregarded another more accurate audit it conducted that used more reliable evidence, like bank deposits and tax ...