BLACK MARKET FOR POT WILL FLOURISH IN CALIFORNIA AS IT DOES IN COLORADO AND OTHER STATES WHERE RECREATIONAL USE OF MARIJUANA IS LEGAL

California goes with legal weed tomorrow but will high tax keep users in the black market?

by Chivis Martinez

Borderland Beat
December 31, 2017

Recreational weed goes legal tomorrow in California. What at first seemed like a dream come true for those who imbibe, overtime have been jerked back into reality, which may persuade users to continue getting their supply from a black market source.

In 2016 California citizens voted to legalize marijuana.

The objective was wide ranged, lessening the judicial system load and jail space for weed possession crimes. Many felonies will now become misdemeanors. And many of those convicted with marijuana crimes will be released from jail, and have records expunged .

Additionally, regulations could be imposed; weed farmers could emerge from criminality and become businessmen working on the side of the law. The hope was to diminish the massive black market.

As for the legal aspect, basically, it will be treated similarly to alcohol. Age requirement is 21, and if you are 21 or older you can legally grow up to six plants at your very own home or be in possession of 1oz.. Driving under the influence laws are alike, but an alcohol breathalyzer is useless with marijuana which is measured by THC. A company called “Hound Labs” has developed a new breathalyzer for marijuana and is in field testing. It also tests alcohol consumption.

This month licenses began being issued to businesses wanting to enter the retail market and larger scale distributors, who will acquire the product from farms and sell it to retail outlets.

Be careful where you smoke

There is an added caution for weed users. On one hand the restriction will be similar to alcohol, there is an added concern…. smoker rules. Where you lit up will be factor alike to cigarette smoking, example “no smoking in public areas”.

It is up to individual cities to determine if facilities will be lawfully able to allow weed smoking.

And cities are tentative about the new law. Many are in a wait and see mode. In Los Angles for example they will not be accepting applications until January 2018. Los Angeles is the largest marijuana market in California, and legalization was supported by 80%. Fact is tomorrow you will have a difficult search for retails outlets selling marijuana. It depends on the will of the cities. San Diego and Oakland are ready to begin tomorrow.

The tax rub

Marijuana tax will be the same for medical or recreational. It begins with a base tax of 15%, but will be much higher. Cities will determine their city tax. It is complicated and in dispute as to the actual bottom line tax. It is reported to be between 30 and 45 %. Even with the expected decline of product price it may be high enough to keep users with the unlawful sources they have.

Taxes:

15% excise TaxCultivation Tax- $2.75 per ounce of leaves 9.25 for flowersState and City Taxes- 8 to 9.75 percentLong term it remains to be seen what will transpire but for now many, cities, users alike are in a holding pattern.

EDITOR’S NOTE: Not only will many current illegal pot users continue to buy weed that has been smuggled into California by Mexican drug cartels, but new users will be drawn to the black market where marijuana will be much cheaper than it will be in licensed pot shops. Those high taxes will keep the cartels from shedding any tears. But just in case, there is also the demand for heroin and meth.