Tags: Marijuana | california | pot | sale | tax revenue

Report: Calif. Projects $3.4B in First Year Recreational Pot Sales

Report: Calif. Projects $3.4B in First Year Recreational Pot Sales
(AP)

By    |   Thursday, 11 January 2018 04:12 PM

California's Department of Finance expects residents to buy nearly 1 million pounds of marijuana over the first full budget year of weed legalization, The Hill reported.

If the estimates for sales between July 1, 2018- July 1, 2019 turn out to be correct, it would amount to $3.4 billion in recreational retail sales — and $643 million in tax revenue for California, The Hill reported.

The new tax revenue is tiny in a state whose annual budget is $190 billion — but The Hill reported it could make a difference as Democratic legislators push Gov. Jerry Brown to spend more of the state's expected $6 billion surplus on social programs.

According to The Hill, California will levy $4,600 in state and local taxes per retail pound of legal weed, about comparable to tax rates in Colorado, Oregon, and Washington.

Retail costs of recreational marijuana are expected to fall from about $3,800 per pound, before taxes are levied, to $3,000 per pound in the 2020-2021 budget year, as more producers plant and grow the crop, The Hill reported.

But California figures the rising demand will offset any declining costs; most of the new recreational market is expected to be dominated by "heavy users" that will account for as much as 80 percent of the retail market, The Hill reported.

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Over the first full budget year of weed legalization, California's Department of Finance expects residents to buy nearly 1 million pounds of marijuana, which amounts to $3.4 billions in sales and $643 million in tax revenue.
california, pot, sale, tax revenue
216
2018-12-11
Thursday, 11 January 2018 04:12 PM
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