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    California! Tax greed driving black market

    LOS ANGELES (AP) — California is increasing business tax rates on legal marijuana, a move that stunned struggling companies that have been pleading with the state to do just the opposite. Hefty marijuana taxes that can approach 50 percent in some communities have been blamed for pushing shoppers into California’s tax-free illegal market, which is thriving. Industry analysts estimate that $3 are spent in the illegal market for every $1 in the legal one.

    The California Cannabis Industry Association said in a statement that its members are “stunned and outraged.” The group said the higher taxes that will take effect Jan. 1 will make it even worse for a legal industry struggling under the weight of heavy regulation and fees, local bans on pot sales and growing and a booming underground marketplace. “Widening the price ... gap between illicit and regulated products will further drive consumers to the illicit market at a time when illicit products are demonstrably putting people’s lives at risk,” the group said, referring to the national vaping health crisis. Los Angeles dispensary owner Jerred Kiloh, who heads the United Cannabis Business Association, said the increased levies added to the heavily taxed market “seems like a slap in the face.”

    The changes involve taxes paid by legal businesses, which ultimately get passed along to consumers at the retail counter. Josh Drayton of the cannabis association predicted that an eighth-ounce purchase of marijuana buds, typically priced around $40 to $45, would be pushed up to $50 or more in the new year. For consumers, “ultimately, they’ll feel that at the register,” Drayton said. A major change involves what’s known as the mark-up rate, which is used when calculating taxes in certain business transactions, such as when a retailer purchases wholesale cannabis that will in turn be sold to consumers. The mark-up rate is being pushed up over 30 percent from its current mark.

    Casey Wells, a spokesman for the California Department of Tax and Fee Administration, said in a statement that the new rate was determined after the agency analyzed thousands of transactions in California’s computerized marijuana-tracking system. Separately, cultivation tax rates are being increased by inflation, as required by law. For example, the tax on an ounce of dry buds will climb to $9.65 from $9.25, an increase of just over 4 percent. Last week, the state’s top cannabis regulator, Lori Ajax, told an industry conference that the legal marketplace can expect more strain and turbulence for at least a couple of years as it deals with sustained competition from illegal sales, industry layoffs and fallout from a national vaping crisis. California Assemblyman Rob Bonta said in a statement that the state should be cutting marijuana taxes to encourage more businesses to move into the regulated market. “This short-sighted move ignores the realities that licensed businesses are at the breaking point, with many struggling to survive,” the Oakland Democrat said.

    The above is from:
    https://finance.yahoo.com/news/calif...205620449.html
    And Shiva created Cannabis from his own body to purify the Amrita, the elixir of life.

    #2
    TrainWreck,,,

    it isn't just a kind of pot

    Comment


      #3
      I know several Californians who will be very happy to read about this...

      ..
      ...

      Isn't Mother Nature grand !

      Comment


        #4
        Time them fuckers stood up to guberment and closed shop. Not about to happen I know but continual bitching about the situation doesn't get anything done. Besides who really gives a hoot about CA? (in general)

        I don't want you to trust me. I want you to doubt me.
        I want you to question me. I want you to look at the facts! ~ Snowden

        “The ultimate measure of a man is not where he stands in moments of comfort and convenience,

        but where he stands at times of challenge and controversy.”


        "Opinion is really the lowest form of human knowledge. It requires no accountability, no understanding.
        The highest form of knowledge is Empathy, for it requires us to suspend our egos and live in another's world" ~ Bill Bullard

        May the fleas of a thousand camels infest
        the crotch of the person who screws up your day and,
        may their arms be too short to scratch...


        Comment


          #5
          Just keep raising the tax rate until 99.9% of cannabis consumers are using the black market. Once they start getting 0 tax revenue, they will start to remember that you can only be so greedy before you kill the golden goose.

          Comment


            #6
            grow your own
            "Fate rarely calls upon oneself at a time of one's own chosing"
            "Change is the only one immutable universal truth."
            "Wisdom is the difference between knowledge and experience."
            "Here's to cigarettes, whisky and wild wild women"
            "Sometimes, it is more pleasing to want a thing then to have it."
            "Patriotism is more closely linked to dissent than it is to conformity and a blind desire for safety and security.
            "Teach the children quietly for one day sons and daughters will rise up and fight where we stood still"
            "The natural progress of things is for liberty to yield and government to gain ground. T, Jefferson"
            "Science adjusts its views based on what's observed. Faith is the denial of observation so that belief can be preserved."
            "Tact is the ability to tell someone to go to hell in such a way that they look forward to the trip."
            "Faith is the deliberate suspension of critical thought."

            Comment


              #7
              You can still grow 6 rec weed plants, but many counties in California have banned growing outdoors. Monterey Co. tried to require a fee permit to grow rec weed, but that was tossed out. So they banned outdoor personal rec weed growing. Riverside Co. passed a law banning all growing of weed, but that was/is superseded by the state law allowing personal grows. Some counties there have also added restrictions, like no CO2 use indoors, or no light use that can be seen from outside your residence. The wording of many of the grow laws are really ambiguous. The laws also keep changing there.
              And Shiva created Cannabis from his own body to purify the Amrita, the elixir of life.

              Comment


                #8
                And, not to be outdone, the House Judiciary Committee this week passed the MORE Act. The Marijuana Opportunity, Reinvestment and Expungement Act would remove marijuana from the Controlled Substances Act, require the federal courts to expunge federal marijuana charges and convictions, and establish a 5% federal tax on Cannabis and Cannabis products.


                So tax the marijuana tax!
                And Shiva created Cannabis from his own body to purify the Amrita, the elixir of life.

                Comment


                  #9
                  As I said in the other thread prop 64 allows cities to opt out of having dispensary’s in their city, which many have, So if you can’t find a dispensary near you and there is black market cannabis right down the street, that is also cheaper where are people going to go...
                  Prop 215 compliant.
                  Don't panic it's ORGANIC...

                  Comment


                    #10
                    Check out this Queen of dragons reciept 75 $ oz i spent$125 Ended up paying $142 after taxes city and state
                    Attached Files

                    Comment


                      #11
                      Originally posted by OregonBorn View Post
                      You can still grow 6 rec weed plants, but many counties in California have banned growing outdoors. Monterey Co. tried to require a fee permit to grow rec weed, but that was tossed out. So they banned outdoor personal rec weed growing. Riverside Co. passed a law banning all growing of weed, but that was/is superseded by the state law allowing personal grows. Some counties there have also added restrictions, like no CO2 use indoors, or no light use that can be seen from outside your residence. The wording of many of the grow laws are really ambiguous. The laws also keep changing there.
                      Most counties ban any outdoor growing, even for the personal six plants. Supposedly they cannot ban you from growing them indoors, but landlords can forbid it. Cannot be in a “living” space. No bedrooms or bathroom or kitchens. Basically can only be done in a garage or detached building that is all up to code for all systems needed for the grow.
                      More taxes are hard to justify on an overtaxed program, people that aren’t rich cannot afford the current legal setup.

                      A lot of county supervisors don’t have a clue about cannabis, much less how to implement a new licensing system. I’ve gone to a few supervisor meetings, and have a friend who attends all of them. He is actually trying to educate the receptive ones, and seems like he has made some progress in that area. Has actually had a couple out to his place to show his grow to, kind of de-stigmatize it for them.

                      He also grows a few large plants outside, in full sun, despite an outdoor ban w/o a license. And he tells the supervisors that he’s doing it. He’s doing it out of principle, but also knows there are thousands of bigger fish that will likely be visited before he is.

                      It’s still a calculated gamble, especially since another local grower was almost as equally outspoken, and sheriff went to his place and cleaned him out of hundreds of plants and pounds.
                      No charges because he had the medical paperwork to support it a few years back, just fucking robbed him.

                      Comment


                        #12
                        edited, didn't see it was crumble

                        Comment


                          #13
                          Originally posted by right View Post
                          Check out this Queen of dragons reciept 75 $ oz i spent$125 Ended up paying $142 after taxes city and state
                          That’s not too bad. I see a couple grams of concentrate there as well. What is the quality like for both?

                          Comment


                            #14
                            Concentrates where fire , and the weed was really good , it's just that the flower looked ugly .
                            I'm only complaining about the taxes. I was 215 for years and I have a hard time justifying tax for meds.

                            Comment


                              #15
                              Shit, that's only about 12%. Average price per oz in Ohio.... $538.00 Mostly tax. A grower here must pay $200,000.00 PER YEAR in tax (license fee) to grow.

                              Black market is flourishing here and the dispensaries are empty.

                              Greed is the worst sin. Lust is my favorite.
                              The American Psychiatric Association's standard reference for psychiatry defines over 450 different mental disorders. I suffer from most of them.
                              Please be understanding if I act a tiny bit unusual at times. Thank you.

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