Buying legal marijuana in California could be pricey enough to keep the black market healthy.
Between customers, retailers and growers, taxes on cannabis may reach as high as 45% in parts of the state, according to a Fitch Ratings report. Those high taxes may keep consumers away from legal marijuana stores once the recreational retail market goes live on January 1.
“High effective tax rates on California cannabis may complicate the state’s efforts to establish legal markets” said analysts Stephen Walsh and Karen Ribble in a Fitch Ratings report on California’s marijuana taxes.
California marijuana consumers are going to have to pay a combination of state and local taxes that vary by municipality. Growers and sellers have their own taxes, too.