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The state’s Cannabis Advisory Committee blames high taxes, local bans, and onerous regulations.

December 28, 2019

By Jacob Sullum : reason – excerpt

Two years after state-licensed marijuana merchants began serving recreational consumers in California, those retailers account for just a quarter of the estimated market, according to a new draft report from the state’s Cannabis Advisory Committee (CAC). The CAC says the lackluster progress in displacing the black market is due to a combination of high taxes, local bans on pot shops, licensing bottlenecks, and heavy regulation.

The CAC report, which was obtained by the Los Angeles Times, projects that licensed marijuana sales will total $3.1 billion this year, compared to $8.7 billion in unlicensed sales. That means the black market still accounts for nearly three-quarters of marijuana sales. Tax revenue from legal sales for the fiscal year that ended last June was just $288 million, less than a third of the $1 billion that was expected… (more)

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