State Could Slash Marijuana Tax That Some Say Is Driving Buyers Into Black Market
States that have legalized marijuana have struggled to find the sweet spot when it comes to taxing the drug.
The Associated Press:
California Could Cut Pot Taxes In Bid To Lure Legal Users
Less than three months after California launched legal marijuana sales for adults, the state could consider temporarily slashing hefty tax rates that some say are driving buyers into the black market. Growers and sellers in the nation's largest legal marketplace have been complaining that taxes that in some cases can near 50 percent are too high. Many consumers, they say, are shopping in the underground market to save a buck. (Blood and Thompson, 3/15)
Los Angeles Times:
California Considers Lower Taxes On Pot To Help New Legal Industry Compete With Black Market
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. (McGreevy, 3/15)
Meanwhile —
The Associated Press:
San Francisco Embraces Amsterdam-Style Marijuana Lounges
[T]here’s nothing like the Barbary Coast lounge almost anywhere in the United States, a conundrum confronting many marijuana enthusiasts who find it increasingly easy to buy pot but harder to find legal places to smoke it. Only California permits marijuana smoking at marijuana retailers with specially designed lounges. But it also allows cities to ban those kids of shops. (Elias, 3/15)