City Manager Doug Dunford said Ceres Police department will be investigating allegations that at least six smoke shops in Ceres illegally sold cannabis products without a license.
A citizen emailed city officials and the media copies of receipts of sales made at six smoke shops in Ceres in 2023, alleging that the shops illegally sold regulated products and how all but two did not charge sales tax.
“Everybody is supposed to be charging sales tax,” said Dunford, who quickly noted that “we can’t automatically assume they are not paying the sales tax.”
The state of California is responsible for enforcing the payment of sales taxes.
The source showed that:
• Smoking City at 2917 E. Whitmore Avenue sold a flavored high potency THC-0 hybrid product on May 26, 2023 and also did not charge sales tax.
• All Star Smoke Shop & More at 1460 Mitchell Road, Suite H in Ceres sold an inhalable cannabis product on June 23, 2023 and also did not collect sales tax.
• On June 21, 2023, the Up ‘N Smoke shop at 1778 Mitchell Road sold an inhalable cannabis product, allegedly without a license to sell.
• George’s Smoke Shop, 2009 Central Ave., sold a cannabis flower on May 27, 2023.
• No tax was collected on the sale of cannabis pre-rolls sold at Ceres Smoke Shop, 2600 Mitchell Road, on May 27, 2023.
• J’s Smoke Shop at 3100 Service Road, Suite 108, sold an inhalable cannabis product on May 27, 2023 and also did not charge sales tax. The same shop also sold cannabis flower and edible psychedelic mushroom products the same month and the receipts notes both were non-taxable items. In the last mentioned sale, the shop sold mushrooms packaged as a copycat version of Twix candy bars.
Last week the Modesto City Council enacted an emergency ordinance that temporarily forbids new smoke shops from establishing in that city.
“We were seeing cannabis sales,” Modesto Police Capt. Chris Adams told the Modesto Bee. “We saw illegal gambling machines, cannabis-infused products directly marketed towards kids. We do have an issue here and that’s something we need to work on.”
In September, Gov. Gavin Newsom’s proposed emergency restrictions which prohibit any “detectable” THC from being present in hemp products. Retailers are now prohibited from selling products made with hemp THC, an intoxicating cannabis compound, and various types of medicinal products made with CBD, a non-intoxicating compound.
The new regulations now require consumers to be 21 years old or older to purchase hemp products and additional cannabinoids intended for human consumption and limit the serving size to five.