The City and Borough of Juneau will consider an ordinance that makes it easier for them to revoke a city-issued business license when marijuana-based businesses fall behind remitting sales taxes or paying for city utilities. (Michael Penn / Juneau Empire File)

CBJ looks to revoke pot shop licenses when taxes are late

“Where there’s chronic delinquency, there needs to be enforcement.”

The City and Borough of Juneau is considering an ordinance that expands the reasons it can revoke a city-issued business license when marijuana-based businesses are delinquent on sales tax or utility payments owed to the city.

CBJ municipal attorney Robert Palmer explained to the Human Resources Committee Monday night during a Zoom meeting that the city requires marijuana businesses to have a state and city license to operate. He explained that this is unusual because the city does not license other types of businesses.

Cannabis industry rolls along despite pandemic

“The original intent of the CBJ marijuana license was to give local control and be more responsive than relying on any state process to correct any alleged violations,” Palmer said.

He explained that recently CBJ staff had identified the need to expand the reasons that a city license could be revoked.

“Our enforcement tools for marijuana are very limited. We can’t seize assets,” he said, adding that inserting the license revocation process when taxes aren’t paid promptly adds a new tool for the city.

Palmer shared the first draft of a potential ordinance that would give the Community Development Department director broader authority to take corrective action when a business doesn’t remit sales tax on time.

Assembly member Maria Gladziszewski told the committee that she was a member of the initial group that wrote the city regulations when marijuana was legalized. She said that not including the city’s option to revoke a license for delinquent taxes and fees was unintentional.

“The intent was to have local control,” Gladziszewski said. “The ordinance was all about local control and the ability to enforce things and not have to genuflect to the state.”

The ordinance will now move to the full Assembly for a vote.

Downtown shop may be 1st of offer onsite pot consumption

In a phone interview Wednesday afternoon, Lacy Wilcox, president of the Alaska Marijuana Industry Association, said the industry welcomes the proposal.

“The industry has been advocating for a more diligent approach to tax enforcement. Where there’s chronic delinquency, there needs to be enforcement,” Wilcox said.

She said that this type of ordinance closes a loophole that allowed operators to renew a state license without city approval because of communication breakdowns along the way.

“We advocate things to close the loophole,” she said. “This is a good thing, and it should have been this way all along.”

Wilcox said that because marijuana is still illegal at the federal level, operators face a tricky balance of operating in a highly regulated environment but without access to traditional banking or business advising relationships.

She noted that a lack of banking options means that owners of marijuana businesses must make tax payments with cash directly to the city and state.

“The city and state are flexible,” she said. “But, it becomes an issue when people are chronically behind on taxes. It’s a slap in the face for those who are keeping up.”

Contact Dana Zigmund at dana.zigmund@juneauempire.com or 907-308-4891.

More in News

The Norwegian Bliss arrives in Juneau on Monday, April 14, 2025. (Jasz Garrett / Juneau Empire file photo)
Ships in port for the week of May 12

This information comes from the Cruise Line Agencies of Alaska’s 2024 schedule.… Continue reading

Legislators and staff huddle to discuss adjustments to a final compromise spending plan during a budget conference committee meeting on Sunday at the Alaska State Capitol. (Mark Sabbatini / Juneau Empire)
$1,000 PFD approved by legislative conference committee as part of final compromise state budget

Lower-than-expected oil prices results in lowest inflation-adjusted dividend since payouts began in 1982.

Juneau Assembly members hear a report from Eaglecrest Ski Area leaders during a Finance Committee meeting on Wednesday, May 14, 2025, at City Hall. (Mark Sabbatini / Juneau Empire file photo)
Juneau Assembly taking on pretty much the entire town with 59-item agenda Monday night

Items include mutitude of projects, faster release of police bodycams, stopping Mendenhall Glacier from being sold.

The Alaska House of Representatives is seen in action on Monday, May 5, 2025. (James Brooks/Alaska Beacon)
Republican opposition kills bill intended to fix Alaska’s absentee voting problems

Senate Bill 64 passed the Senate this week, but the House doesn’t have enough time to address it, legislators said.

Fu Bao Hartle (center), a Juneau Special Olympics athlete, crosses a bridge with family and supporters during the annual Alaska Law Enforcement Torch Run on Saturday, May 17, 2025. (Ellie Ruel / Juneau Empire)
Community spirit shines at Juneau’s Law Enforcement Torch Run for Special Olympics

Energy was high at race to fundraise to send Juneau’s athletes to Anchorage Summer Games.

The Alaska State Capitol is seen behind a curtain of blooming branches on Saturday, May 17, 2025. (James Brooks/Alaska Beacon)
Most state services will see no new funding in final Alaska state budget draft

Flat funding, combined with inflation, will mean service cuts in many places across the state.

Steve Whitney (left) is sworn in as a Juneau Board of Education member by Superior Court Judge Amy Mead in the library at Thunder Mountain Middle School on Saturday, May 17, 2025, after five candidates were interviewed by the other board members to fill the seat vacated when Will Muldoon resigned last month. (Mark Sabbatini / Juneau Empire)
Steve Whitney returns to Juneau school board six years after departure to temporarily fill vacant seat

Fisheries manager and parent selected from among five candidates to serve until October’s election.

A used gondola purchased from an Austrian ski resort is seen as the key to Eaglecrest Ski Area’s year-round operations and a secure financial future. (Eaglecrest Ski Area photo)
Board chair: Eaglecrest’s gondola pushing limits of 2028 completion deadline under Goldbelt agreement

Company can nix $10M deal if work not finished on project ski area calls vital to its financial future.

Two spawning pink salmon head upstream in shallow water in Cove Creek in Whittier on Aug. 5, 2024. While last year’s pink salmon runs and harvests were weak, big increases are expected this year. (Yereth Rosen/Alaska Beacon)
Alaska officials forecast improvements for the state’s commercial salmon harvest

Total catch is projected to be twice the size of last year’s weak harvest.

Most Read