California pot taxes lag as illegal market flourishes
If California was ever tough on marijuana growing and distribution before it was legal, I bet California will go all out now that they are losing serious tax dollars because illegal pot appears to have under-bid legal pot.
Someone once said if you want less of something, tax it.Deep in Gov. Gavin Newsom’s new budget is a figure that says a lot about California’s shaky legal marijuana market: The state is expecting a lot less cash from cannabis taxes.
The Democrat’s proposed spending plan, released Thursday, projects the state will bank $355 million in marijuana excise taxes by the end of June. That’s roughly half of what was once expected after broad legal sales kicked off last year.
Industry experts say the diminished tax income reflects a somber reality: Most consumers are continuing to purchase pot in the illegal marketplace, where they avoid taxes that can near 50 percent in some communities.