In a move that has shocked the cannabis industry, California is hiking legal marijuana business taxes. This decision comes on the heels of many licensed marijuana companies imploring the state to reduce such taxes.
But with legal storefronts now set to face cannabis taxes nearing 50 per cent beginning January 1, the move is being seen by some as another reason pot customers will choose the Golden State’s already thriving black market. Cannabis business analysts estimate that for every dollar spent in California’s legal pot market, $3 are being spent on the illicit market.
In a statement released by the California Cannabis Industry Association, members are said to be both outraged and stunned by the decision. The group believes increased cannabis business taxes will only make trading even more difficult for those operating legally, who are already fraught with heavy fees, stringent regulation, local community bans on cannabis cultivation and sales, and a flourishing black market.