Cannabis-ness is Poised to be Big Business

Cannabis is a growing business and everyone is taking note.


Our marijuana lawyers in Los Angeles know that as more states legalize marijuana for medicinal or recreational use, the business opportunities will increase dramatically.

Some current marijuana businesses are experiencing exponential increases in the demand for products. The businesses that were once small and ignored by investors are beginning to draw attention.

Small marijuana businesses are now meeting with institutional investors such as hedge funds. Investment is ramping up with particular tenacity in Colorado and Washington, following the legalized recreational use of marijuana (which will take effect Jan. 1, 2014).

The federal government announced in August of this year that it would not prevent states from instituting their own taxation and regulatory frameworks. As a result of the federal government’s announcement, pent-up demand has been unleashed by investors looking to the marijuana industry as a way to turn a profit.

Market research on the pot industry reveals that the pot industry could be the next great American industry.

Banks are still reluctant to offer sellers and growers of marijuana a safe place to store their businesses cash.

Many parallel industries are seeing an increase in interest and investment along with the pot industry – industries revolving around software programs and security systems are seeing an uptick as well.

In the wake of a recent Colorado vote to approve taxes of 25 percent on recreational pot, there has been some recent concern about the taxes placed on recreational marijuana. When it comes to taxes some experts wonder how high is too high?

The 25 percent tax rate is more than triple the rate for medical marijuana. Washington state has mandated a tax of 50 percent on recreational marijuana compared to zero percent on medicinal pot.

Although the taxes are steep states expect to bring in big revenue from recreational marijuana taxes.

Washington has approved four separate tiers of taxation for recreational marijuana including:

• The standard 6.5 percent sales tax imposed directly on the customer • A 25 percent excise tax on all marijuana sales from the retailer to the customer • A 25 percent excise tax on all cannabis sales from the processor to the retailer • A 25 percent excise tax on all pot sales from producer to processor
Washington state has estimated that it will bring in as much as $500 million annually from recreational marijuana taxes.

Washington and Colorado will be watched closely by other states as they pioneer the legalization of recreational marijuana use. States will want to know whether legalizing marijuana will be a costly or profitable proposition.

As for investors, it appears the decision has already been made: there is big money in the cannabis business.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.
More Blog Entries:

Cannabis Patients Fight to Keep Rights , December 3, 2013, Los Angeles Marijuana Lawyer Blog
Synthetic Marijuana Dealer Convicted in Closely-Watched Federal Case, Oct. 14, 2013, Los Angeles Marijuana Lawyer Blog

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