High cannabis taxes cause the increase of the black market in California

Marijuana legalization continues finding its place. In California, high cannabis taxes have caused the black market to rise and the government has raised less than half of what was expected in the first half of the year.

Cannabis taxes in California are the 45 percent of the cost of the final product.

Bad news for the cannabis industry in California. At least, for now. Marijuana legalization still needs to go through a prolonged period of time until the situation is stabilized and it is found the appropriate mechanisms and the system suits best to the government, companies and weed consumers.

The cannabis taxes raising did not reach the 175 million dollars that the government of California estimated, so they are taking measures to reach that amount and also to end the black market, consequences of high rates taxes, say some businessmen in the cannabis industry.

Currently, there are four different types of cannabis taxes in California: the cultivation taxes, sales, local and special taxes. In total, these taxes are approximately the 45 percent of the marijuana final cost. Therefore, some cities are taking measures, reducing these taxes to compete with the black market.

Governor Jerry Brown has launched a special research team and a $ 14 million investment to eradicate black market growers and vendors, especially in major cities in a volume of drugs trafficking, such as Los Angeles, San Diego or Sacramento. In the event that the plan fails, the federal government will intervene to end this situation.

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