Report: Cannabis Taxes Could Surpass 45% In Some Parts Of California
One of the biggest arguments in favor of legalizing marijuana is that legal cannabis sales will generate tax revenues. New Frontier Data estimates that taxes from legal cannabis sales in America will top 655 million dollars in 2017 alone. Colorado itself is going to surpass 200 million dollars in revenues from cannabis taxes and fees. Revenue generation for public coffers is definitely an advantage of legalization, but if the legal industry is to truly compete with the unregulated market in a meaningful way, taxes need to be kept in check.
Unfortunately some lawmakers look at cannabis legalization as an opportunity to tax marijuana to death. Whether or not that is a strategy to hinder the success of legalization or not is anyone’s guess, but regardless, the end result of over-taxation of cannabis sales is the continued success of the unregulated market. That should be avoided as much as possible. Unregulated sales are going to exist no matter what, but a fair tax rate on legal cannabis sales (and fair regulation standards) will help ensure that the unregulated market is hit as hard as possible. A report is out from California which estimates that the tax rate on legal cannabis sales could be through the roof, which would be very unfortunate. Per the Los Angeles Times:
- Report: California Cannabis Taxes Could Hit 45%www.ganjapreneur.comNovember 1, 2017
- Could California’s Pot Taxes Reach 45%?cannabis.net
- High marijuana taxes could give California’s black market new life - TNMNews.comthenationalmarijuananews.comOctober 31, 2017
- Report: California's Marijuana Taxes Are Too Highhightimes.comNovember 3, 2017