In the bustling heart of California's cannabis industry, Aaron Justis stands as a beacon of innovation and steadfast advocacy for rational regulation. As the president of Buds & Roses, a high-end medical marijuana dispensary situated on Ventura Boulevard in Studio City, Justis has become a prominent figure not only within the cannabis community but also among political circles in Los Angeles and Sacramento. His journey from an Illinois entrepreneur to a leading voice in California's cannabis sector showcases his deep commitment to the industry, his strategic approach to business, and his unwavering belief in the benefits of cannabis. With a background that spans two decades in cannabis activism, Justis's story is one of passion, perseverance, and a relentless pursuit of fairness in an often turbulent landscape.
Haus Botanica: Aaron, thank you for joining us. It’s clear you’ve navigated some complex challenges in the cannabis industry, particularly around regulations. Can you share your perspective on California’s regulatory environment and how you’ve adapted?
Aaron Justis: Absolutely, and thanks for having me. The regulatory landscape in California is complex, to say the least. We’re in a state where, technically, every dispensary operates in a legal gray area. Despite this, we’ve taken a proactive approach by engaging with local governments and adhering strictly to tax obligations. This includes a six percent gross sales tax and workers compensation, on top of the 9.75-percent sales tax. It’s a tough environment, especially when competing with entities that skirt these responsibilities, but our commitment to compliance has helped us establish good will with city halls and tax collectors.
Haus Botanica: Speaking of taxes, how have you managed the significant tax burdens, especially considering the challenges with the IRS?
Aaron Justis: The tax situation has been one of our biggest hurdles. Following an audit for the 2011 and 2012 tax years, we faced a staggering tax bill without being able to deduct legitimate business expenses, thanks to federal tax code 280E. This experience felt like robbery—it was devastating. Moving forward, we’ve had to strategize carefully to manage our tax obligations while continuing to grow. It’s a precarious balance, but one we navigate with careful planning and a focus on quality and compliance.
Haus Botanica: Retail is another critical aspect of your business. How do you maintain competitiveness and quality in such a crowded market?
Aaron Justis: Quality and trust are the cornerstones of our retail philosophy. We’ve partnered with renowned cultivators and invested heavily in research and development to ensure our products stand out. Our commitment to the veganic cultivation process and meticulous selection of strains are testament to this. Despite the competition and the challenges posed by Proposition D, which capped the number of dispensaries and raised taxes, we’re confident in our product. We’ve built Buds & Roses on the premise that superior quality will always attract discerning customers.
Haus Botanica: You’ve been an active voice in the cannabis community for over two decades. How do you envision the future of cannabis in California and beyond?
Aaron Justis: I’m fundamentally optimistic about the future. My ultimate goal is to see cannabis consumption facilities become as commonplace as coffee shops. This vision is about more than just business; it’s about moving the industry forward and creating spaces where cannabis can be enjoyed responsibly and socially. The path there involves continued advocacy, especially on issues like tax reform and banking, which are critical for the industry’s sustainability. Despite the challenges, I believe we’re on the right track, and I’m committed to contributing to positive change every step of the way.
Haus Botanica: Aaron, your journey and insights are truly inspiring. Thank you for sharing your story and for your unwavering dedication to the cannabis industry.
Aaron Justis: Thank you for having me. It’s a journey that’s far from over, but I’m excited about the future and the role we can all play in shaping it.
