High marijuana taxes could give California’s black market new life

A report from a credit rating agency suggests that California’s high tax rates on marijuana – which could reach 45% depending on local taxes – may result in an ongoing or even thriving black market for cannabis. According to Fitch Ratings – the agency that compiled the report – “the existing black market for cannabis may prove a formidable competitor to legal markets if new taxes lead to higher prices than available from illicit sources,” The Washington Post reported. Although consumers will pay only a 15% state excise tax and a cultivation tax, local governments can impose ... High marijuana taxes could give California’s black market new life is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs