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LOS ANGELES (AP) – In California, California lives with lower expectations for tax revenues from the sale of cannabis.
The state levied $ 74 million in cannabis excise taxes between April and June, after Governor Gavin Newsom's administration significantly reduced taxes on the fragile legal market.
Government analysts had already announced that California would be overwhelmed by taxes from the legal economy of the domestic market: $ 1 billion a year a few years from the launch of the world's largest market in 2018.
However, many problems have hindered initial sales, including a shortage of authorized outlets, a disorderly supply chain and the persistence of a tax-free illicit market.
In May, the state reduced the target of what it planned to collect until June 2020 – a total reduction of $ 223 million from the forecast four months earlier.
At that time, Newsom had stated that it would probably take the legal market five to seven years to reach its potential, which it has repeatedly emphasized in the past. He also pointed to communities that have resisted legal selling and growth.
State taxes on pots include a 15% tax on all purchases of cannabis and cannabis-based products, including medical cannabis. Local governments are free to add taxes on sales and growth, which has created a confusing patchwork of rates around the state.
The cannabis market in California is growing, but not as fast as expected.
Excise taxes recovery increased in the second quarter from $ 61 million in January to March.
According to the State Finance Department, excise tax revenues for the fiscal year ended in June amounted to $ 317 million, or $ 29 million more than the revised projection for this exercise. However, this figure is preliminary and could be revised.
A recent report predicted that sales in California would increase by 23% this year compared to 2018.
The report from industry advisers Arcview Market Research and BDS Analytics also forecast that legal spending would increase to $ 7.2 billion by 2024, with the illegal market falling to $ 6.4 billion from Here, here.
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