Mon, Aug 3, 2020

California’s legal Cannabis industry is undergoing several growing pains.

Almost two years after recreational weed became legal for adults in the Golden State, the black market still dwarfs legal sales.

Owner Phil Blurton at All About Wellness in Sacramento says that means an uneven playing field.

“Our city license now is $20,000 a year,” Blurton said.
“The state license is $96,000. Then we pay 8.75 percent sales tax to the state.”

Blurton said he also pays an additional four percent Cannabis tax to the city, on top of an additional 15 percent to the state, “which is making the cost of our product so expensive, the black market is booming now.”

He’s not kidding. California’s illegal Cannabis market brought in $8.7 billion in sales this year – more than double the legal market, according to industry experts BDS Analytics.

BDS found that there is just one legal Cannabis retailer for every 35,137 adults in California.
That compares quite poorly with Colorado, which has one dispensary for every 4,240 adults, and
with Oregon, which has one pot shop for every 5,567 adults.