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Pot growers in California staying illegal to avoid high taxes and regulations
Posted on 3/12/18 at 6:38 am
Posted on 3/12/18 at 6:38 am
LINK
CNS link
California can't even do legalized marijuana right.
CNS link
quote:
Less than one percent (0.78%) of the state’s 68,150 marijuana growers have obtained licenses, and as little as 25 percent of the cannabis consumed in California is currently being purchased from licensed retailers, “An Emerging Crisis: Barriers to Entry in California Cannabis – California Growers Association,” finds. The reason: government greed and overregulation have made it easier and more practical to remain illegal – the same reasons companies typically cite for relocating to another state. California’s “disregard or lack of concern for the cost (especially one-time costs) of regulatory compliance,” is keeping pot sellers underground, the study concludes. Exceeding 60 percent, California’s effective tax rate is the highest of any state where cannabis is legal. Water, testing, and historic land use impact regulations are too costly and burdensome, the study finds. And, requiring licensed businesses to buy new generators, instead of retrofitting their current equipment to meet government standards, is both unnecessary and cost-prohibitive. Annual tax-revenue had, intially, been projected to be about one billion dollars.
California can't even do legalized marijuana right.
12
Posted on 3/12/18 at 7:06 am to 88Wildcat
Drug dealers + illegals?
Death penalty.
Death penalty.
Posted on 3/12/18 at 7:09 am to TheGasMan
Kill them until they die from it.
Posted on 3/12/18 at 7:16 am to 88Wildcat
Some of us saw this coming.
Posted on 3/12/18 at 7:18 am to 88Wildcat
Colorado has plenty of black market dealers as well. People are always going to seek cheaper prices.
Posted on 3/12/18 at 7:22 am to Tchefuncte Tiger
I didn’t see it coming. But am I surprised?
Oh California.
They can’t get out of their own way.
Oh California.
They can’t get out of their own way.
This post was edited on 3/12/18 at 7:22 am
Posted on 3/12/18 at 7:27 am to 88Wildcat
Was on small town radio locally saturday. Mom and pop growers find the reporting onerous.
Mexican gangs will continue to be illegal.
Mexican gangs will continue to be illegal.
Posted on 3/12/18 at 8:05 am to 88Wildcat
quote:
overnment greed and overregulation have made it easier and more practical to remain illegal
As someone posted earlier, this happened in Colorado too, except it took a couple years
I have a good friend who was working a side hustle for an illegal grower outside Ft Collins right as they were passing their laws. As it became legal, they switched their operation to a licensed, legal grow. After about 2 years, the hassle and headache and burdening costs became so suffocating, they shut down their legal operation and went back to operating off the radar.
He said the legalization in Colorado sent the market in neighboring Kansas thru the roof and too good to pass up
You cant dismiss market forces. As long as legalization rolls out slowly in piece-meal fashion, it'll take decades before market equilibrium
Posted on 3/12/18 at 8:19 am to Uncle Stu
They have created the worst of Both Worlds decriminalization has skyrocketed demand but onerous regulations have stifled legal production.
The black market leaps into the void, from which the state gets no benefit
The black market leaps into the void, from which the state gets no benefit
Posted on 3/12/18 at 8:22 am to 88Wildcat
quote:
Exceeding 60 percent, California’s effective tax rate is the highest of any state where cannabis is legal.
Over 60%?
Why even make it legal if you only want it for the economic elite?
This post was edited on 3/12/18 at 8:22 am
Posted on 3/12/18 at 8:28 am to 88Wildcat
How can you regulate something that is literally a weed.
It grows anywhere and anybody can do it.
It grows anywhere and anybody can do it.
Posted on 3/12/18 at 9:06 am to 88Wildcat
You can grow 6 plants per adult in a household legally. So that gives anyone an opportunity to grow it. I realize it is not about this, just pointing it out.
Is anyone really suprised by this? Once prohibition ended, everyone stopped making moonshine.....right?
Is anyone really suprised by this? Once prohibition ended, everyone stopped making moonshine.....right?
Posted on 3/12/18 at 10:24 am to Deuces
quote:
Colorado has plenty of black market dealers as well
Every legal state has a black market still.
Posted on 3/12/18 at 10:30 am to 88Wildcat
Like bootlegging alcohol, the taxes and regulations make illegal growing very attractive.
The whole point was to lower prices and get rid of criminal elements that deal pot. Using weed as a tax revenue source, something everyone expected and wanted, has gotten out of hand, as usual.
The whole point was to lower prices and get rid of criminal elements that deal pot. Using weed as a tax revenue source, something everyone expected and wanted, has gotten out of hand, as usual.
Posted on 3/12/18 at 10:32 am to 88Wildcat
So people who were criminals prior to legalization are still criminals?
There's a lesson here about gun control.
There's a lesson here about gun control.
Posted on 3/12/18 at 10:35 am to blueboy
quote:
Like bootlegging alcohol, the taxes and regulations make illegal growing very attractive.
The "attractiveness" here with alcohol is now extremely limited as to be all but inconsequential.
Posted on 3/12/18 at 10:36 am to Abadeebadaba
quote:
Once prohibition ended, everyone stopped making moonshine.....right?
For the most part, yeah.
What percent of alcohol consumed in this country do you think is now illegal or "black market"? I can't imagine it's even close to 1%.
This post was edited on 3/12/18 at 10:39 am
Posted on 3/12/18 at 10:40 am to chity
quote:it is a flowering plant...you cant compare it to dallisgrass.
How can you regulate something that is literally a weed.
Posted on 3/12/18 at 10:41 am to LSUintheNW
quote:
Every legal state has a black market still.
I think what's interesting (at least in this case) is that the initial reaction of those in Colorado, was that a significant amount of the 'illegal' pot growers were open and willing to try and go straight, willing to pay the various fees, taxes and jump through the hoops etc, etc....
And it took a couple years for those regulations and taxes to push a percentage of those same growers back into the black market, which is completely predictable
But in California's case, the launch of the legalization is so egregious with regards to taxation that before they even get out of the starting blocks, the news gets wind of the same story
Until the federal government de-schedules it down to the same level as alcohol and allows local governments and states to "sin" tax accordingly this rollercoaster will continue
Posted on 3/12/18 at 10:43 am to Uncle Stu
quote:
this happened in Colorado too, except it took a couple years
Wait, it didnt happen on day 1??? I guess legalization doesnt work...
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