XPost: alt.support.marijuana, ca.politics, alt.california   
   XPost: or.politics, seattle.politics   
   From: a425couple@hotmail.com   
      
   High taxes on legal pot in California could mean black market will thrive   
   Patrick McGreevy   
      
   The Farmacy, a California medical marijuana dispensary. (Spencer   
   Weiner/Los Angeles Times)   
      
   State and local taxes on marijuana could surpass 45% in some parts of   
   California, jeopardizing efforts to bring all growers and sellers into a   
   state-licensed market in January, according to the global credit ratings   
   firm Fitch Ratings.   
      
   “High tax rates raise prices in legal markets, reinforcing the price   
   advantage of black markets,” the firm said in a report Monday.   
   “California’s black markets for cannabis were well established long   
   before its voters legalized cannabis in November 2016 and are expected   
   to dominate post-legalization production.”   
      
   As the top pot-producing state in the nation, California could be on   
   thin ice with the federal government >>   
      
   The report said that increased enforcement may blunt the illegal market,   
   “but high taxes may complicate such efforts by diverting in-state sales   
   to the black market."   
      
   California is scheduled to begin issuing licenses to grow, transport and   
   sell medical and recreational marijuana on Jan. 1 and will charge a 15%   
   excise tax, as well as a state cultivation levy of $9.25 per ounce for   
   cannabis flowers and $2.75 per ounce for leaves.   
      
   Hundreds applied to be on California's pot advisory committee. Here's   
   who got picked >>   
      
   In addition, local business taxes have been approved by 61 cities and   
   counties ranging from 7.75% to 9.75%.   
      
   The marijuana market is expected to provide a windfall for state and   
   local treasuries.   
      
   “In the handful of states that legalized nonmedical cannabis prior to   
   2016, tax receipts have generally outpaced initial revenue estimates and   
   have shown strong year-over-year gains,” Fitch Ratings said. But   
   California could end up being one of the highest taxing states in the   
   country if proposals stand.   
      
   http://www.latimes.com/politics/essential/la-pol-ca-essential-po   
   itics-updates-high-marijuana-taxes-could-keep-black-1509381838-htmlstory.html   
      
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