California considers lower taxes on pot to help new legal industry compete with black market

[DP]

I remember when it was first suggested that drugs should be made legal so that the government could control the trade. Addicts could consume their drug of choice with clean needles, e.g., in a clean controlled environment and all drugs would be available to addicts and users at much reduced prices. Therefore the pushers would be out of business and cheaper prices would stop the users from resorting to crimes to support their habits.

Alarmed that California's fledgling legal marijuana industry is being undercut by the black market, a group of lawmakers proposed Thursday to reduce state taxes for three years on growing and selling cannabis to allow licensed sellers to get on their feet.
With many California license holders claiming they can't compete because of high state and local taxes, the new legislation would cut the state excise tax from 15% to 11% and suspend a cultivation tax that charges $148 per pound.

"Criminals do not pay business taxes, ensure consumers are 21 and over, obtain licenses or follow product safety regulations," said Assemblyman Tom Lackey (R-Palmdale), one of five legislators pushing the bill. "We need to give legal businesses some temporary tax relief so they do not continue to be undercut by the black market."

http://www.latimes.com/politics/la-pol-c...story.html

[C(-)ris]

I thought that the commercial pot was cheaper than the illegal stuff anyway? Or at least that was the way it was presented when it was made legal. This was supposed to be a non-issue.

[freeradical]

I knew that high ;-) tax revenues from weed was just a pipe dream. :-)

This is just a big duh.

IMHO, anytime the state imposes "special" sin taxes that are above and beyond normal sales taxes that they are in business with those who make the goods.

Case in point : Tobacco.

I'm sure that these states with high cigarette taxes make more on this than "Big Tobacco".

[max]

Why is California trying to reinvent the wheel, why not follow Colorado?...

[morlock]

I've found that if you shop around, the legal stuff is cheaper, better quality, and you don't have to hang out in a greasy, dark apartment in Pacoima or the less desirable parts of Hollywood. A couple of guys would deliver to the studio, but at most had 2 or 3 strains. Most dispensaries have at least 20, and often many more. And you can get Cannabis White Chocolate Raspberry Truffle Bars!

[bfd]

Those places are stuffed full of people during every minute of their operation. They are not being hurt by any competition. They cater to a different segment of the population. If you think about it, this is all about setting the stage for raising taxes on the sticky, green stuff later on by putting all of the small "mom and pop" business entrepreneurs out of business now.

[Bill S.]

In WA state there is a 37% state excise tax plus up to a 10.4 percent local and state sales tax. I went into a weed store last summer and saw it was selling for as low as $5 a gram including taxes. Back when I was a consumer (early 80's) street value was $10/gram, that's about $23.41 in 2018 dollars. California weed should be extremely cheap with only a 11% tax and the growers are going to be making the big bucks.

[RAMd®d]

CA should put some of that future 'windfall' aside for assistance for victims of DWS/DWL. I'm thinking that will get worse before it gets whatever will pass for better.

[NewtonMP2100]

....the.....POT......calling the kettle......BLACK......??

[OWC Jamie]

Lowering taxes to stimulate business.
Hmm, what a novel idea.