Regulating a unregulatable market

MARIJUANA PROFITS AND TAXES MAY GO UP IN SMOKE

MOST REGULATORS AND LAWMAKERS FORGET HUMAN ACTION

With the legalization of marijuana use and possession in California, the state is expecting an increase in revenue of up to $1 billion dollars. This will require legal sales of around $7 billion. While there is a state of euphoria from purchasers just from being able to legally purchase and posses the weed, it may be short lived as the main source of marijuana in the state.

The law states that citizens over 21 may purchase, posses and give away up to one ounce of weed. They are also allowed to cultivate their own crop of up to 6 plants at a time. There is a sales tax of between 6 and 9% and also a 15 % excise tax. There could also be other local taxes that could raise the tax to as much as 45%. 

Legal weed is expected to cost $50 to $65 for 1/8 ounce plus tax. Black market weed costs around $20 for the same 1 oz.. with no tax. The black market in marijuana is well established in the state for decades. The legalization will also be a windfall for the unregulated growers. 

If you grow your 6 plants at a time you can legally posses more than 1 ounce. You are required to store in in a secure place and not transport it. I would assume you could produce more than 1 crop a year and find yourself with multiple pounds of weed. 

Everyone can now possess weed, so it will be impossible to determine where it came from. You can give away up to one ounce legally. So, human nature being what it is the marijuana market in California is really wide open. You grow it, you can give it away, and of course you can always accept favors and gifts from friends and relatives.

Good luck with the regulators in trying to enforce this new black market. They will of course find some big time infractions and will be heavy handed on legal merchants. This will just raise the cost more for legal weed.  Good Luck , California.