SAN FRANCISCO and LOS ANGELES, May 20, 2020 /PRNewswire/ -- Dama Financial announces its support of the City of Los Angeles Office of Finance plan to offer its 300+ cannabis business licensees an improved method for cash payment of city cannabis tax and licensing fees.
Under prior business practices, the City of Los Angeles accepted payments by credit card, ACH, or cash by appointment. Since COVID-19, access to cash payment appointments have been suspended due to social distancing and personal safety requirements which resulted in businesses without access to banking services unable to pay their taxes and fees in cash.
With a deadline of June 30th for ensuring tax obligations are current, and city approval for operations in 2020 quickly approaching, the City of Los Angeles partnered with Dama Financial to provide cannabis businesses a safe and convenient way to remit cash payments for taxes and licensing fees.
A licensed cannabis business with a CashToTax account can arrange for cash to be picked up by armored courier and deposited into a dedicated FDIC-Insured account for subsequent online tax and fee payments. Dama's solution is also considerably less than the 2.7% service fee assessed for credit card payments and also includes secured pickup of cash at the business location.
"The City of Los Angeles Office of Finance is pleased with Dama Financial's ability to support our cash paying cannabis businesses at a time when we are navigating an unprecedented disruption," said Claire Bartels, Director of Finance for the city. "CashToTax is a convenient payment solution for cannabis license holders to keep their businesses compliant and active."
"Dama Financial is excited to support the City of Los Angeles and its cannabis license holders. With CashToTax, the City is prioritizing the safety and health of its community, as well as empowering the cannabis related businesses by providing a new and electronic method to pay their taxes and permit fees," said Eric Kaufman, Dama Financial's Chief Revenue Officer.
Los Angeles license holders can apply online at www.cashtotax.com.
About the City of Los Angeles: Los Angeles, with a population of 4 million, is the second-largest city in the United States, and the most populous city in the state of California. With its diverse economy, the city hosts a broad range of businesses in all industries. It is also famous for its movie, television, and recording industry. The city has become the world's undisputed center of innovation and creativity that spur Los Angeles' growth and economic development.
About Dama Financial
Dama Financial provides transparent, sustainable banking and payment solutions to cash-intensive industries. Using innovative technology and data, Dama Financial exceeds the compliance and regulatory requirements for servicing high-risk businesses. Payments industry experts have come together to enable the cannabis industry, an unbanked category, to achieve their potential by removing the barriers that exclude them from accessing fundamental financial solutions. For more information, visit www.DamaFinancial.com.
SOURCE Dama Financial