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Wednesday 26 October 2011

Government of Oakland, California

Oakland City Hall and central plaza in 1917. Built of framed steel with unreinforced masonry infill at a cost of $2 million in 1914, the structure was the tallest building in Oakland until the Tribune Tower was built in 1923.
Oakland has a mayor-council government. The mayor is elected for a four-year term. The council has eight council members representing seven districts in Oakland with one member elected at-large; council members serve staggered four-year terms. The mayor appoints a city administrator, subject to the confirmation by the City Council, who is the chief administrative officer of the city. Other city officers include: city attorney (elected), city auditor (elected), and city clerk (appointed by city administrator).Oakland's Mayor is subject to a tenure limited to two terms. There are no term limits for the city council. Three council members are currently on their fourth term, and Councilman De La Fuente is serving for his fifth term, approaching two decades in office.
Oakland City Hall was evacuated after the 1989 Loma Prieta earthquake until $80M seismic retrofit and hazard abatement work was complete in 1995.
Jean Quan was elected mayor in November 2010, beating Don Perata and Rebecca Kaplan in the city's first ranked choice balloting.
In the state legislature Oakland is located in the 9th Senate District, represented by Democrat Loni Hancock, and in the 14th, 16th, and 18th Assembly Districts, represented by Democrats Nancy Skinner, Sandré Swanson, and Mary Hayashi respectively. Oakland is represented in the United States House of Representatives by Barbara Lee and is located in California's 9th Congressional District, which has a Cook PVI of D +38.

San Francisco tax attorney Henry Wykowski, who represents DeAngelo, said a 2007 case involving another California dispensary established that the cost of goods sold was a legitimate expense for businesses the IRS otherwise considers illegitimate.


"It goes all the way back to Prohibition," Wykowski explained. "They expect even businesses operating illegally to file tax returns, so they still have to give them their business deductions, and a cost of goods sold is the primary deduction that any business would have."


DeAngelo has until Dec. 22 to contest the audit in tax court. The IRS has told him it is now reviewing Harborside's returns for 2009 and 2010.


Meanwhile, a handful of state officials have written House Speaker John Boehner, a Republican, and Senate Majority Leader Harry Reid, a Democrat, on behalf of DeAngelo, asking the two lawmakers to exempt "legally operating cannabis businesses" from the tax code section for drug traffickers.


DeAngelo said he does not have the $2.4 million the IRS wants. Like all legal medical marijuana dispensaries in California, Harborside operates as a nonprofit corporation while paying state sales taxes and a 5 percent local tax to Oakland — for a total of $3.1 million this year, he said.


"We would be happy to pay taxes like every other business does," he said. "No business, including Harborside, could survive if it's taxed on its gross revenue. All we want is to be treated like every other business in America."


Wykowski said he represents at least two dozen other California and Colorado pot dispensaries dealing with IRS audits. Some have persuaded auditors to accept deductions for auxiliary services such as on-site yoga classes, the time employees spend counseling customers as opposed to preparing marijuana, and quality testing. Others such as Harborside have been less successful.



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