CALIFORNIA: Early in the morning on Feb. 24, a large man with a long white beard and big cowboy hat gathered with about a dozen other people to pray outside the San Francisco branch of the United States tax court. In a kettledrum voice, Bryan Davies led the group in the Lord’s Prayer before asking, “If there is any evil here, let it be sent to the lake of fire!”
Then Davies strode into the federal building, where he and his wife, Lanette, took on the Internal Revenue Service in a case that could set an important precedent for the nation’s rapidly growing legal marijuana industry.
At issue is a nearly $875,000 tax bill that the Davies’ have refused to pay on the grounds that a 1982 law meant to prevent drug traffickers from deducting business expenses should not apply to Canna Care, their small “Christian-based” medical marijuana dispensary in Sacramento—or any other marijuana dispensary legal under state law.
Even if the Davies’ don’t win that argument, there are legal precedents for the dispensary to get a big discount on that bill if owners can prove they’re involved in two trades. So for two days of testimony, the usually staid federal tax court was given over to a detailed examination of what, exactly, constitutes a Christian cannabis business that claims to spend as much time serving the community as it does selling weed-infused lollipops.