Two years after California began licensing pot shops, the industry remains so outmatched by the black market that a state panel recently joined some legalization supporters in calling for significant changes — perhaps turning again to voters to address the problems.
Proposition 64 legalized growing, selling and using marijuana for recreational purposes in November 2016, and the state began issuing licenses on Jan. 1, 2018. Officials originally estimated the state would take in $1 billion annually in tax revenue from cannabis, but the fiscal year that ended in June saw just $288 million collected. The current state budget projects $359 million in tax collections.
The legal marijuana industry’s struggles, including being banned from some cities, have been blamed for workforce reductions at major cannabis firms, including Eaze and Flow Kana, both of which recently cut 20% of their staff, while Weedmaps pared its workforce by 25%. “They’re able to undercut the price of the legal market and sell whatever, whenever, to whomever,” said Kevin A. Sabet, president of the national group Smart Approaches to Marijuana. “Did we really think they’d just disappear?”
William G. Panzer, an Oakland attorney who was co-author of Proposition 215, which legalized medical marijuana in California, called the current licensing system a “nightmare.” Some backers of Proposition 64 say it is too soon to panic and roll back taxes and regulations meant to protect consumers and the environment.
Some law enforcement officials remain concerned about the system set up by Proposition 64, arguing the persistent illicit market is a threat to public safety.
Lower the taxes (30%?!) Take away mandate for everything to come pre-packaged (can’t be environmental & take my own container anymore). Take away kid-proof bag requirement (add costs to small biz & parents are responsible for watching *their* kids). Lift edible cap of 100MG!
Lower the price. Lower the tax.
I dont know what theyre talking about, I dont know anyone who still buys off the street, or anyone who sells illegally.
Let’s start with the truth: The gangsters at the top of the federal government someone has to be the drug lord
Only way they’ll make money is selling it medicinally and outlawing recreational....
The problem is the tax is way to high and it takes so long for the weed to go from plant to shop, it has to go through inspection process which takes forever and you end up with old dry taxed weed. The price has actually gone UP since legalization, the whole bill was a scam.
The tax and price doomed legal cannabis from the start in California. Nobody in their right mind wants those 2001 prices. Only wally’s and out of towners.
Would seem to have been more than predictable. But these two numbers? $288 million taxes collected on $359 million of revenue. Revenue, mind you - not net income.
Just send a contingent to Colorado. They will show you how it's done. Canada not much better either.
The nit-picky rules & regs adopted by state & feds have made it such a pain-in-the-butt to buy weed, might as well buy it from the underground sources. In NY, the only bookies who ever went broke was when they started OTB & stocked it w/patronage. This should be a money winner!
Hi