High marijuana taxes could give California’s black market new life

420Patients.com is accepting qualified medical marijuana patients and caregivers to join our network. We value every registered member and we hope to serve you in Arizona. This article brought to you by 420 community friends mmjbusinessdaily.com

A report from a credit rating agency suggests that California’s high tax rates on marijuana – which could reach 45% depending on local taxes – may result in an ongoing or even thriving black market for cannabis.

According to Fitch Ratings – the agency that compiled the report – “the existing black market for cannabis may prove a formidable competitor to legal markets if new taxes lead to higher prices than available from illicit sources,” The Washington Post reported.

Although consumers will pay only a 15% state excise tax and a cultivation tax, local governments can impose

High marijuana taxes could give California’s black market new life is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

Leave a Reply

Skip to toolbar