Marijuana Price Tags Are Rising In California

Marijuana

The price of marijuana purchased legally in California is about to increase. New taxes and regulations are in the pipeline, and it will have a direct impact on the cost of marijuana sold on the retail level within the state.

Medical marijuana purchased in California already costs about $35 for enough to smoke five or six joints. However, that price is set to go up to around $50 or $60 when all of the new taxes come into play. ABC News has reported that this change is just around the corner, as it is set to come into effect in 2018.

Many state governments are struggling with their budgets, and this means that they are interested in raising revenues however they can. Some are considering similar plans to what California has going for it. The amount of tax revenue alone makes it a very desirable thing for many states to do.

It is surprising to some to hear that there are more states that permit the sale of medical marijuana than those that do not. States that have legalized recreational marijuana are much fewer and far between, but their numbers are expected to grow as well.

Something that has happened as a result of all of these taxes is a boost to the illegal market for marijuana as well. Sellers who avoid paying all of the state taxes and also ignore the regulations are doing something illegal, but it means that they can keep their prices much lower than the state regulated stores. As such, the level of taxes on marijuana must be set very carefully.

Land is another cost that legislators and those who wish to get into the industry have to consider. It costs different prices depending on where it is. There is some that is as expensive as twenty-five dollars per square foot. By contrast, other parts of the state have land that is as cost effective as a dollar or two per square foot. Location matters greatly to the bottom line in the marijuana industry. Consumers will pay the price depending upon where their marijuana was grown, and how many different taxes are placed on it. Expect some complaints from California residents in the very near future.

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