Well Huge news here in California, Recreational marijuana may be poised for one of its biggest victories, now that the Adult Use of Marijuana Act has officially been placed on the 2016 general election ballot in California. All current signs suggest victory – but some legalization advocates aren’t ready to celebrate.
First, a little perspective: California is the world’s eighth-largest economy in the world. The state would more than double the current nationwide recreational market, given its population of nearly 40 million. According to editorial director of a popular Marijuana Journal magazine.
Sales for the California recreational market alone would exceed the existing level of nationwide sales for both medical and recreational cannabis. But, a California cannabis political consultant, worries that local elections could impose steep taxes on adult-use cannabis products – a move that could breathe further life into the black market.
Local governments, he noted, “can’t make profits off this unless you ask your voters.”
He predicts most municipalities offering a legal market will probably ask voters to impose marijuana-related taxes.
“And if the cannabis industry isn’t organized at the local level, then it can wind up being something very painful,” Example: In Santa Barbara, where the city council this week finalized a November ballot question asking voters to approve a 20% tax on both medical and recreational marijuana. The proposed tax hike will appear on the same ballot as the AUMA.
“There will be a wave of these that will be appearing in the next month or so,” he predicted.
Under state law, he said, the only taxes local governments can impose unilaterally are those that recoup administrative costs – as opposed to taxes that could dedicate funds to other causes, such as public infrastructure.
So any local government that wants to make money from legalization may well ask voters to approve a new tax. And depending on what local officials decide is appropriate, taxation levels could be sky-high – like the Santa Barbara proposal – or more modest. 20%?? That’s like buying Cigarettes! California Taxing at its finest.
Well here we go, politicians are now lining up and legislators are now beginning to write tax laws to cash in on the profits. For all you Bud Tenders, Bud Trimmers and Marijuana Trimming Machine Bud operators, time to start positioning into them battle stations. It’s going to be a very bumpy ride indeed. A win indeed, however a lot more legislation’s will be written and re-written again and again until we can finally relax to fire one up. (Recreationally that is.)
Michael Garay ~
