California Jacks Up Weed Prices; Industry isn’t Happy

Most California pot smokers have barely had time to change their bong water since marijuana was legalized — and the state’s already jacking up the price of weed. State lawmakers have approved a number of tax increases involving recreational marijuana, including hikes on business tax and a “mark-up tax,” which is being increased by 30 percent. The news doesn’t sit well with California Cannabis Industry Association officials, who say the state’s already-overblown tax rates are causing people buy their weed from illegal dealers. “Widening the price gap between illicit and regulated products will further drive consumers to the illicit market,” a rep for the association says.

Siding with industry leaders is California Assemblyman Rob Bonta, who says the state should be cutting weed tax to encourage businesses to move into the regulated market. “This short-sighted move ignores the realities that licensed businesses are at the breaking point, with many struggling to survive,” he says. The new tax rates go into effect on January 1st.

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