Marijuana Thrives on Colo. Black Market Despite Legal Sales

Image: Marijuana Thrives on Colo. Black Market Despite Legal Sales (Pashabo/iStock)

Tuesday, 05 Aug 2014 09:08 PM

By Greg Richter

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Legal sales of recreational marijuana were supposed to reduce black-market demand for pot but have actually had the opposite effect, The Washington Post reports.

"It's actually benefited the black market. Prices are going up," a broker identified as "Junior" told the Post's Tina Griego.

Griego, appearing on Fox News Channel's "The O'Reilly Factor" on Tuesday, explained that pot prices in Colorado had been plummeting since 2009. But when it became legal to sell in dispensaries earlier this year, the prices shot up, partly to pay taxes imposed by the state.

Illegal pot doesn't come with taxes attached, so the black market began to thrive again, Griego explained.

Also, people sell some of their legally grown medical marijuana out-of-state. Medicinal pot has been legal for more than a decade, with people allowed to grow up to six plants if prescribed by a doctor.

Some people use the "red card" that comes with medicinal pot to grow more than they need, then contact brokers such as "Junior," who resell the pot at double the price.

Griego said lawmakers had hoped to see medicinal users gravitate toward the legal recreational market, but that hasn't happened because the taxes on medical marijuana are significantly lower.

To the contrary, Griego said, the number of "red card" holders has actually increased.

Colorado officials say the problem will end as more competition drives down the price of legal marijuana, Griego reported.

"Prices will fall. The illegal market will shrink accordingly," she wrote.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Minneapolis Paper Under Fire for Full-Page Anti-Transgender Ad

Tuesday, 30 Sep 2014 13:18 PM

Minnesota's largest news outlet, the Minneapolis Star Tribune, has sparked criticism after running a full-page anti-tran . . .

Poll: Many Democrats Oppose Obama's Immigration Policies

Tuesday, 30 Sep 2014 12:50 PM

A surprising number of Democrats and swing voters have strong views opposing President Barack Obama's immigration polici . . .

US Beheading Suspect Charged with First Degree Murder

Tuesday, 30 Sep 2014 12:45 PM

A US man who allegedly beheaded a female co-worker in Oklahoma has been charged with first degree murder, a prosecutor s . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved