Another Pot Co. Sues Sacramento Over 'Illegal' Fees

By Sarah Jarvis (April 8, 2022, 10:31 AM EDT) -- A Sacramento cannabis company is suing the city in California state court, alleging it exceeded its authority in levying a 1% fee on cannabis businesses and falsely claimed the fee is necessary to mitigate purported negative impacts.

In a complaint filed on March 28, D.C.D. Co. LLC alleged Sacramento enacted the fees with the improper intent of raising revenue, which "vastly exceeded the city's police powers, and violated several California statutes and constitutional limits, as well as federal constitutional protections." D.C.D. wants the court to void and refund any fees with interest.

"Simply put, the city has taken advantage of an...

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