1st Year California Recreational Marijuana Sales Estimated at $3.4-B
Thursday’s California’s Department of Finance declared that it expects residents to buy nearly 1-M pounds of Marijuana over the 1st full budget year of it recreational legalization
If the estimates for sales between 1 July 2018- 1 July 2019 are correct, it would amount to $3.4-B in recreational retail sales, and $643-M in tax revenue for California.
The new tax revenue is very small in The Golden State whose annual budget is $190-B, but it could make a difference as Democratic legislators push Governor Jerry Brown to spend more of the state’s expected $6-B surplus on social programs.
California will levy $4,600 in state and local taxes per retail pound of legal Marijuana, comparable to tax rates in Colorado, Oregon, and Washington.
Retail costs of recreational marijuana are expected to fall from about $3,800 per pound, before taxes are levied, to $3,000 per pound in the 2020-2021 budget year, as more producers plant and grow the crop.
But California figures the rising demand will offset any declining costs; most of the new recreational market is expected to be dominated by “heavy users” that will account for as much as 80^ of the retail market.