Did a little research at the cannabis store. Adult-use sales for recreational purposes have commenced in California. I noticed that the taxes were 19% for medical stuff prior to Jan 1, but now there's no "medical" option and taxes across the board are 34.25%!!!!
This includes our already crazy sales tax of 9.25%.
This ensures there will still be a thriving "black" market, as consumers will look to avoid the ghastly tax, and the police (hopefully) will be very lax for marijuana possession type issues.
I knew a guy who operated a medical dispensary, legal, above board.
But his own side business was selling weed on the black market.
There will be a lot of non "dispensary" sales.
It will be interesting to see how it plays out.
And your point that medical users basically don't get a discount sucks.
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This is something that the legislators just don't understand. I, as a consumer, don't have much of an incentive to follow the law and pay a 34% tax rate on a $20 purchase. It's an unnecessary upcharge just to follow the law. A reasonable sales tax would be more acceptable but this is ridiculous to see. It de-incentivises sales and therefore reduces tax revenue compared to keeping it lower at the same rate as alcohol/food in general. My fear is that they'll be too stupid to realize the loss of revenue is from this tax and then they'll increase the tax to combat it; doubling down on a poor decision.
This will surely let the Black Market fester.
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Excessive taxation is akin to prohibition and will cause many of the same problems of tax evasion and violent black markets.
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Blackmarket has its own rules I guess. People continue to buy and sell things even if the government puts a ban on it.
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Im on my way to California the Thomas fire delayed my trip!!
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