From: Robert Finkle
To: Damien O"Bid
Cc: Jon Farris; Milan Nocciolo
Subject: Comments to Proposed Changes to Tax Resolution Date: Friday, February 18, 2022 12:48:08 PM
Dear Mr. O'Bid,
My office represents FGF II, Inc. ("FGF"), which holds a local permit for distribution in the City of Cotati. As you may be aware the Statewide cannabis industry is experiencing extreme financial hardship both from general market conditions and overburdensome Federal, State and local taxation. Distributors face additional complications both because their ability to write-off business costs on their federal tax returns is lower than other permit types and because their margins, which were already slim, are shrinking at a greater rate than other operators. In short, the 2% gross proceeds tax being proposed in the new tax regulation would eliminate already slim margins placing FGF's continued operations, indeed its very existence, in jeopardy. It is the hope of FGF that this new tax is voted down or at least be delayed a year to allow the current market conditions to rebound.
On a personal note, very glad to see another jurisdiction looking at cannabis lounges! Safe spaces to consume and enjoy cannabis are extremely limited I believe the current resolution will increase access to safe use and also add to the retail businesses and City coffers.
Best,
Robert D. Finkle, Esq.
Finkle Law Office
5776 Stoneridge Mall Road
Suite 360
Pleasanton, CA 94588
(925) 232-1376 Main
(510) 736-5529 Direct
Please note our address has changed.
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