![]() Medical marijuana sales are taxed 2.9 percent, the standard sales tax on goods and services in Colorado. He maintains that neither the Buddy Boy closures nor recent tax news affects those businesses. Our goal is to get that taken care of, and in order to do that, we need to move those licenses."įritzel is also an owner of Lightshade, a chain of eleven dispensaries operating in Aurora, Denver and Federal Heights, as well as Denver medical dispensary PotCo. If their main concern is to get paid, that would be no problem," he says. "The goal here is to definitively satisfy what we owe, same for our landlords and vendors. ![]() Selling one store should be able to pay for all of this and then some. And it's not just the city that is owed money, he notes. If the city wants to be paid, Fritzel - who previously said that "vultures are already circling" to buy his dispensary licenses - argues that allowing Buddy Boy to sell its licenses would make that happen much sooner. Whether that means the city would hold up the transfer of ownership application or not is yet to be determined," Escudero says. "I can say that if there is a transfer of ownership application filed by this business and there remains unpaid city taxes, we will work closely with the Department of Finance to support their efforts to collect the outstanding taxes owed. Thomas Mitchell Fritzel wants to sell the marijuana dispensary licenses for his seven Buddy Boy stores according to Denver Department of Excise and Licenses communication director Eric Escudero, whether the company will be able to sell those licenses will be determined after Buddy Boy files an application to transfer them to another entity. The marijuana branch of the DOR, the state Marijuana Enforcement Division, "hasn’t taken any action at this time," according to spokeswoman Shannon Gray, but is working with Buddy Boy and the City of Denver "to monitor the situation." We're working with all of the entities to get current."įritzel acknowledges that Buddy Boy likely owes the Colorado Department of Revenue some money, too, but he thinks it will be a much smaller amount. "We were completely unaware of, but we've got a plan. Sales were the still main reason, but that was among a whole laundry list of reasons of why we closed," Fritzel says. He says he was aware that money was owed the city, but didn't expect a full-on shutdown. The city is "still working with" Buddy Boy to determine the exact amount of tax payments owed, but Ellington estimates it's around $500,000 and dates back "several months." There are no hearings or penalties currently planned for Buddy Boy, he adds.Ĭonfirming the tax issues, Fritzel again points to poor sales as the primary reason Buddy Boy decided to close. ![]() "The goal here is to continue to work with the business." So we expedited the process," Ellington says. "We were in discussions with Buddy Boy related to some delinquent tax returns, and then we saw a media report indicating they were closing their locations. After learning of those plans, the Department of Finance posted distraint warrants and notices of closure on the doors of all Buddy Boy stores. According to Denver Treasurer Steve Ellington, the business owes the City of Denver around $500,000 for failing to pay or properly report sales taxes.īuddy Boy had notified employees earlier this month that the company had planned to close up shop in an interview with Westword, majority owner John Fritzel pointed to poor marijuana sales and dropping prices as the reasons.Īccording to Ellington, the city was unaware of Buddy Boy's plans until a Westword article announced the company's upcoming shutdown. Notices posted on all seven Buddy Boy stores announce that the dispensaries were closed by the Denver Department of Finance for unpaid taxes. Buddy Boy had announced it was closing its stores on Friday, June 17, but the City of Denver actually shut the marijuana chain's doors days earlier.
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