Two churches are looking at a shutdown after local officials have accused them of selling tax-free marijuana.
Coachella Valley Church at 2142 The Alameda and Oklevueha Native American Church of South Bay at 265 Meridian Ave. were both alleged to be dispensing cannabis without permits, a report by The Mercury News read. Councilwoman Devora "Dev" Davis referred to the two institutions as "illegal dispensaries" and revealed that it was her job to see them closed.
"It's a priority for me, so I will be doing everything I can to shut down illegal pot clubs, regardless of whether they call themselves churches or not," Davis said.
However, Coachella Valley Church members denounced this and said that their activity is protected by religious freedom. Donny Lords, the church's director, also explained that the selling of marijuana is tax-exempt because the church registered as a non-profit.
Meanwhile, the Oklevueha Native American Church maintained the same argument for its refusal to pay taxes. Since they registered for a non-profit status, their sales should not be taxed.
Councilwoman Davis, however, was simply not taking it. "The cannabis tax applies whether you are a legal or not-legal dispensary. They're basically violating law if they don't pay taxes on cannabis sales, even if they're not a dispensary," she exclaimed.
Davis divulged that she did not care if church members are using marijuana on their grounds, but she emphasized that taxes should be paid in the city.
Even though Lords refers to the income as "donations," the Board of Equalization stated that tangible items were still subjected to tax, "whether they collect the tax reimbursement from their customer or if they don't collect any tax." The churches could be facing a $50,000 fine for each day they operate.
