Hot Topics :
Pot.jpg

Licensed pot sales start soon in California. But high taxes on marijuana could mean the black market will thrive

State and local taxes on marijuana could surpass 45% in some parts of California, jeopardizing efforts to bring all growers and sellers into a state-licensed market in January, according to the global credit ratings firm Fitch Ratings.

“High tax rates raise prices in legal markets, reinforcing the price advantage of black markets,” the firm said in a report Monday. “California’s black markets for cannabis were well established long before its voters legalized cannabis in November 2016 and are expected to dominate post-legalization production.”

The report said that increased enforcement may blunt the illegal market, “but high taxes may complicate such efforts by diverting in-state sales to the black market.”

California is scheduled to begin issuing licenses to grow, transport and sell medical and recreational marijuana on Jan. 1 and will charge a 15% excise tax, as well as a state cultivation levy of $9.25 per ounce for cannabis flowers and $2.75 per ounce for leaves.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Conservatives Will Prevail

Get your daily dose of news & info from Conservatives Will Prevail

Sign up to Conservatives Will Prevail for FREE and receive our daily emails.

Popular Topics

  • Here Are The 10 Republicans Who Voted To Impeach Trump
  • JUDGE THROWS OUT 50,000 ABSENTEE BALLOT REQUESTS IN LINN COUNTY
  • Anti-government activist Bundy arrested at Idaho Statehouse
  • John Kasich’s journey from conservative darling to Democratic convention speaker
  • California judges lift coronavirus eviction ban