XPost: misc.legal, alt.california, alt.politics.trump
XPost: sac.politics, alt.politics.democrats, alt.fan.rush-limbaugh
From:
leroysoetoro@bho-rejected.com
https://www.cbsnews.com/news/california-pot-advocates-say-tax-rates-too- high-legal-recreational-marijuana/
OAKLAND -- Marijuana dispensaries across California experienced long lines
on the first day of legal recreational pot sales. But advocates warned the legal industry won't survive without big changes, CBS SF Bay Area reports.
"I'm very happy about – thrilled really – to see the legalization of
cannabis in California," said Steve DeAngelo, co-founder and CEO of
Harborside in Oakland. "At the same time, I'm terrified about what's going
to happen with these taxes."
Harborside has been a medical marijuana dispensary for more than a decade,
and is now selling recreational marijuana at a much higher price.
"In our shop here, the tax rate has gone from 15 percent all the way up to almost 35 percent for adult consumers," DeAngelo said.
Here's how that math works for Harborside. There is the regular state
sales tax of 6 percent, and the regular Alameda County sales tax of 3.25 percent. Then there is a 15 percent state tax on marijuana, and a 10
percent Oakland tax on recreational marijuana.
Total taxes: 34.25 percent.
"That is a huge hit. And it's going to mean that a significant number of people, less affluent consumers, are going to turn to the lower prices of
the underground market," DeAngelo said.
Some customers are willing to pay a premium for quality product, such as
Geno Escalante, who was among those in line on Monday.
"We all want the best stuff and you know the best stuff is always here at Harborside," Escalante said.
DeAngelo said the black market may be lower cost, but Harborside offers hundreds of products not available on the black market and they also offer consumer protection.
"All of our medicine is tested in a laboratory," DeAngelo said. "It's
evaluated both for safety, for things like pesticides and pathogenic
molds, and it's also evaluated for potency."
Still, all this protection isn't cheap. In addition to taxes, marijuana regulations drive up the cost.
"We have to pay rent, we have to have security systems, we have to pay licensing fees, we have to have insurance, we have to buy equipment,"
DeAngelo said.
It adds up. And not everyone can pay the higher prices. People who are
disabled or on fixed incomes may turn to the black market.
"They can barely afford cannabis now, much less with a 35 or 40 percent
tax increase," DeAngelo said.
When people aren't buying from a regulated business, the state is getting
zero taxes.
Colorado, Washington state and Oregon each legalized marijuana at one tax
rate and then had to lower the rate to keep people in the legitimate
market. DeAngelo believes California will have to do the same.
"I don't think that the current tax rate for cannabis in California is sustainable," he said.
Escalante agrees. "I honestly don't think this tax is gonna last too
much," the customer said. "They'll see that cannabis is not bad. It's a
plant."
DeAngelo said it makes no sense that marijuana is taxed so much more than alcohol. California taxes beer and wine at 20 cents a gallon. That amount
has not changed since 1991.
As for federal alcohol taxes, the new tax law taking effect next year
decreases the taxes on beer, wine and spirits.
Editor's Note: The video references a 5 percent Oakland tax on marijuana.
The 5 percent tax is on medical marijuana. Recreational marijuana in the
city is taxed at 10 percent.
--
Donald J. Trump, 304 electoral votes to 227, defeated compulsive liar in
denial Hillary Rodham Clinton on December 19th, 2016. The clown car
parade of the democrat party ran out of gas and got run over by a Trump
truck.
Congratulations President Trump. Thank you for cleaning up the disaster
of the Obama presidency.
Under Barack Obama's leadership, the United States of America became the
The World According To Garp.
ObamaCare is a total 100% failure and no lie that can be put forth by its supporters can dispute that.
Obama jobs, the result of ObamaCare. 12-15 working hours a week at minimum wage, no benefits and the primary revenue stream for ObamaCare. It can't
be funded with money people don't have, yet liberals lie about how great
it is.
Obama increased total debt from $10 trillion to $20 trillion in the eight
years he was in office, and sold out heterosexuals for Hollywood queer
liberal democrat donors.
--- SoupGate-Win32 v1.05
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