General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLegal Pot Estimate Cut as 44% Washington Tax Curbs Demand
http://www.bloomberg.com/news/2014-06-20/legal-pot-estimate-cut-as-44-washington-tax-curbs-demand.htmlWashington is poised to be as much of a disappointment as Colorado at filling its coffers from sales of legalized marijuana as buyers in the Pacific state balk at paying an effective sin tax rate of about 44 percent.
Revenue in Washington from voter-approved recreational pot sales, which start next month, is projected to fall 69 percent short of initial estimates as the state issues as few as 10 of 334 recreational licenses and the lower cost of medical marijuana undercuts demand, as it did in Colorado.
State officials across the U.S. have been watching to see whether legalizing marijuana will help balance their budgets as the economy rebounds from the worst financial crisis since the Great Depression. Alaska voters will consider legalization in the November election, and an effort is under way to place a similar measure on the ballot in Oregon. Two years from now, legal-pot advocates plan campaigns in Arizona, California, Nevada, Massachusetts, Maine and Montana.
The potential windfall is limited, said Mark Kleiman, a public policy professor at the University of California, Los Angeles, who helped devise Washingtons marijuana policy as a consultant to the state. In the first couple of months, I think the prices will be high. The tax collections will be small because the volume will be small.
freeplessinseattle
(3,508 posts)So let those numbskulls pay higher property taxes then, and get reamed some other way to pay for Big Bertha.
ohheckyeah
(9,314 posts)legalize it and tax the hell out of it.
Greed wins again.
freeplessinseattle
(3,508 posts)What other products or services are taxed that much?
Uncle Joe
(58,354 posts)It sounds like they don't want it to work.
freeplessinseattle
(3,508 posts)Comrade Grumpy
(13,184 posts)If taxes are too high, they won't be able to end black markets.
There must be an optimum tax price-point. I'm sure some economist could come up with a chart.
The Washington initiative is too tight, anyway. Live and learn.
fizzgig
(24,146 posts)60 bucks for an ounce at the shop that just opened in my (colorado) city.
LeftyMom
(49,212 posts)It started to settle back down and then there was a price crash when the feds started closing many of the shops. I wouldn't expect the prices to be entirely stable until the legal ground is firmer, right now a federal election (or just a whim) could really change the legal landscape and thus the costs of operating a dispensary.
As a side note, reading serious news articles in the regular paper about the plight of the pot farmer was kind of surreal.
Timez Squarez
(262 posts)Are you sure it's not for a 1/4? That's what the regular prices are.
Colorado MMJ market: (Note: I have never stepped into a legal marijuana store and don't plan to anytime soon)
1/8: $25-30
1/4: $50-60
1/2: $80-100
1 ounce: $150-200
2 ounces: $225-250
L0oniX
(31,493 posts)fizzgig
(24,146 posts)and that doesn't include taxes. mmj prices are much lower.
i can get a quarter for 65.
LLD
(136 posts)$10 - $12 dollars a gram here in MT for MMJ.
Uncle Joe
(58,354 posts)jobs in other sectors of the economy.
http://www.inc.com/will-yakowicz/legal-marijuana-gives-colorado-businesses-a-lift.html
According to the latest data from the Colorado Department of Revenue, the state's legal recreational marijuana industry sold more than $22 million worth of cannabis in April. Since legalization, weed sales have generated $11 million in sales and excise taxes, a figure expected to increase to $30 million by the end of the year.
(snip)
Demand for Johnson's staffing services has gotten a bump recently, in part thanks to demand related to the marijuana industry. "In the first quarter of the year, which is typically a low season for us, we couldn't get enough electricians out wiring circuits and electricity in places that used to be empty warehouses and now are grow houses," he says. "They are literally everywhere." Ironists may appreciate how Johnson sends only drug-free individuals to build and outfit marijuana-growing facilities, but the demand for more workers is serious business. "If we had 100 more electricians, we'd have them on a job by Tuesday," Johnson adds.
There is also an influx of workers to the state, says David Bacon, the CEO for Better With Bacon, a recruiting firm for startups and technology companies. He's found legalization has made Colorado a more desirable destination for the famously different-drummer types attracted by the businesses he serves. "The fact that companies based here are in a state that recognizes a certain freedom for recreational use has strengthened the appeal for job applicants," he says. "I'd say there's up to a 20 percent increase in people contacting us for a job in Colorado."
Meanwhile, entire new categories of businesses have sprung up around legal weed. One of Bacon's clients is a software company that has built a seed-to-sale tracking system for marijuana growers and dispensaries. Colorado law mandates that marijuana must be tracked until it's sold--so a plant is catalogued starting when it's cloned, through when it's chopped up and dried (or turned into oil or pot-infused foodstuffs known as edibles), distributed to stores, and placed on shelves. "Whenever you have a federal, or in our case a state, law or mandate, there are new regulations and compliances that come into effect," Bacon says. "You can't just go grow pot and sell it." And with such regulation, he says, also comes opportunity.
Run on real estate
Ethan Chumley, CEO of Denver-based national steel building construction company Armstrong Steel, says revenue at his Denver business increased 35 percent in the past few months, in part from customers requiring buildings to grow marijuana. "It's been such an uptick that it caused me to consider offering turnkey construction for growers--ventilation, lighting, and all the other things they need," he says, noting that the rise in such construction projects has created a significant number of jobs.
There is much more on the link.
Thanks for the thread, xchrom
LittleBlue
(10,362 posts)OilemFirchen
(7,143 posts)As a smoker, I look forward to the new BATMF.
Enjoy the ride.
LittleBlue
(10,362 posts)OilemFirchen
(7,143 posts)Howsabout the Tide Underground?
The exception does not prove the rule.
dilby
(2,273 posts)Marijuana is legal so people don't care who they buy it from, they will continue to buy it from Mexican Cartels on the black market because it's cheaper than walking into a store to buy it and pay ridiculous fees. All Washington is doing is making the Cartels a ton of money, when they could be making citizens of Washington a lot of money and getting a nice kickback in a reasonable tax to the state.
And the tax is not curbing demand, it's curbing the demand of paying a tax, people are still buying weed like they always were. They are just buying it on the black market.
MaggieD
(7,393 posts)Timez Squarez
(262 posts)25% tax on pot is more than reasonable. Washington fails to realize that and black market pot continues to operate in Washington.
Colorado does not have that problem, as 25% tax on legal pot is a reasonable number. Since we're making hands over fist on these legal pot, there's a very good chance it'll be lowered to about 15% tax and still make hands over fist.
As an MMJ red card holder, I do not have to pay those legal marijuana taxes. And I do have my reasons to be a red card holder.
Aerows
(39,961 posts)compared to a few drinks of good booze? I realize that not everyone can make booze and people that can grow pot can grow it, but compared to, say, a fifth of quality liquor how does the price stack up towards getting high?
I don't smoke, so I don't know - I just thought it would be a cost margin thing. Do you need a significant amount of pot to equal booze?
Timez Squarez
(262 posts)if you have not experienced pot before.....
Actual size: ( )
I have a high tolerance, so I need to smoke a lot more to get the high, but since I started smoking once a day, my tolerance went down...
MaggieD
(7,393 posts)And they give give huge tax credits and exceptions to big business. Therefore our sin taxes are always outrageous. Very regressive tax structure.
This will ensure pot sales stay underground. That's for sure.
lumberjack_jeff
(33,224 posts)Washington likes poor people, there'd be no tax revenue without them.
MaggieD
(7,393 posts)All the records of online cigarette sellers and hit up all the buyers from inside WA state for thousands in unpaid cigarette taxes? I do. Some people owed over $10 grand in taxes.