California was the first state to pass legislation for medical marijuana, and it was among the first to generate a legal adult-use weed industry. After just two years of operation, the recreational dispensaries have generated over $1 billion in tax revenue, which has gone to fund childcare and anti-drug programs for the state’s youth, environmental initiatives like park maintenance and wildland restoration and public safety grants for local police and fire departments. It is amazing to see so many good things come from the simple act of legalizing marijuana.
Unfortunately, California’s tax revenues could be much higher and the benefits of legal weed greater — if only it could get a handle on its thriving cannabis black market. Currently, California’s black market for weed is more profitable than its legal one. Read on to learn more about why people are opting for illegal purchases over legal ones and what the state can do to change it.
Taxes Are Prohibitively High
Almost across the board, states with legal adult-use cannabis tax the stuff at an alarming rate. The high taxes on recreational weed serve a few purposes. First, high taxes tend to financially limit how much product a single user can accrue, which seems like an effective way to keep marijuana use in check. More importantly, however, tax revenue is one of the most compelling reasons to legalize marijuana, and it is one that pro-weed advocates tend to harp on. Thus, when cannabis does gain adult-use regulations within a state, lawmakers aren’t afraid to jack the taxes up sky-high.
California piles layer after layer of taxes upon recreational marijuana:
· State taxation. At the state level, California charges cultivators $9.25 per ounce of flower, $2.75 per ounce of leaves and $1.29 of fresh plant material.













