SK3 Group Inc. (SKTO)

[JLE86]

HARBORSIDE IS A Health center and is operational 24 hours a day, required by the California BOE:

6. Many medical marijuana dispensing collectives consider themselves to be health care facilities. Are they exempt from applying for a seller’s permit and paying sales tax for this reason?
Regulation 1591 exempts the sale or use of medicines furnished by qualifying health care facilities. (See response to Question 5, above, regarding the requirements to qualify as an exempt medicine.) State law defines a qualifying “health facility” as either a facility licensed under state law to provide 24-hour inpatient care or a state-licensed clinic.
7. If I don’t make any profit whatsoever from providing medical marijuana, do I still need to apply for a seller’s permit?
Yes. Not making a profit does not relieve a seller of his or her sales tax liability. However, whether or not you make a profit, like other retailers making taxable sales, you can ask your customers to reimburse you for the sales taxes due on your sales, if you fulfill the requirements explained in Regulation 1700, Reimbursement for Sales Tax.
As discussed in the response to Question 10, the Board may enter into a payment plan with a seller when the seller has difficulty meeting its tax liabilities. The Board has an Offers in Compromise Program that provides a payment alternative for individuals and businesses who have closed out their accounts.