It just goes to show you: the more you got, the more you want. California is making close to a million dollars off of cannabis a day, but they still aren’t happy. Or, in the words of the Associated Press, “California is living with diminished expectations” after getting its check from the tax office.
See, there was a time not so long ago that prognosticators were saying California would rake in $1 billion a year in cannabis tax revenue.
However, the state only took in $74 million in cannabis excise tax between April and June of this year. That prompted Gov. Gavin Newson to cut projections on weed revenue for the next year by $223 million.
It also prompted to him to blame some of the communities in California which have chosen to abstain from the new market and impmose bans on cannabis businesses.
According to the AP, there are a few reasons why sales have been sluggish, some of them implying that the infrastructure has been shoddily built, including a “wobbly supply chain” and a “shaky legal market.” And, of course, there’s also the ever-present rival black market, which offers consumers weed tax-free.
To be fair, Newson has said for awhile that it would probably take 5-7 years for the legal cannabis market to reach its full potential.
Legal weed revenue is actually growing in California, just not at the pace some people had hoped. Excise taxes have already ticked up this year since January, and new reports have predicted that cannabis revenue in 2019 will be up 23% over last year.
So be happy with your mill a day, California, and just smoke some of your legal weed until you get richer next year.
Photo via Flickr user Kristina Alexanderson