Gov. Newsom Pledges Marijuana Tax Overhaul To Save California’s Collapsing Cannabis Industry

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My state, Massachusetts, has a fairly reasonable combined 17% excise & sales tax on all recreational marijuana products with an optional 3% local excise tax. So the max you pay is 20% which is steep for a product, but pretty normal for a ‘sin tax.’ Compare that with California’s 40% and Washington 47% and I’m amazed that their industry was able to get off the ground in the first place! Paying 40%+ on top of street prices would drive people to the black market no matter what the product is. Edit: clarified that these taxes apply exclusively to recreational cannabis.

deviousdumplin

This was bound to happen either way. The main problem is that the market is totally oversaturated. In Colorado we have multiple dispensaries on every block. I have no idea how these places make money. Lowering taxes will help but the market should self-correct over time.

GammaGargoyle

Just decriminalize it and work towards interstate commerce. Stop f*cking around Washington. Get your shit together. – Any state that tries to over tax at the state level is just going to shoot itself at the foot. Both the state and federal government should start with LIGHT taxes and slowly work their way up over time to see what the market can tolerate. You owe the consumers and citizens who you’ve jilted for so long justice and the freedom to explore the plant openly finally. – **You better get this right Washington.**

Thishearts0nfire

The **TAX** isn’t the problem! It’s all the bureaucracy and regulations that no one can comply with! Both Alcohol and Tobacco products aren’t as regulated as marijuana!

barzbub

This is why I’m staying away from 420 investments. The prices are driven so ridiculously low that there can’t be any room for profit. To the tax the shit out of it is a death blow. Tax isn’t the problem it’s just the final straw.

niftyifty