In 2017, voters from California approved of Proposition 64. The proposition legalized cannabis consumption for adult use. Now, things have changed in the illegal cannabis market. The legal cannabis market has not yet emerged as the top market seller for cannabis due to some issues. It is because around 70 percent of California’s city and county administration still does not allow the sale of cannabis under their laws.
Higher taxation is an economic trick
Economics also play a crucial role in defining the momentum of the industry in California. The cannabis taxation is above average, and this is declining the growth of the legal cannabis market in the state.
With ongoing taxation rates, entrepreneurs, business persons, and the general public are under pressure to turn to the black market. This is especially a serious case for patients who heavily rely on cannabis for their treatments. Taxes are high to degrade the consumers from getting cannabis.
Whenever taxes on a certain item are high, people tend to purchase that item less often. This, in return also hinders the growth of the market. There are a lower employment rate and even lesser profits. This factor applies to the otherwise emerging industry.
Founder & Interim Editor of L.A. Cannabis News