Tuesday, May 15, 2018

California finally cashes in on pot legalization with a $60 million tax windfall in the first quarter of 2018

It only took the state of California a year to get their cannabis industry going after voters approved a referendum for recreational use of the drug back in late 2016, but it appears now they are finally receiving the fruits of that process.

On May 14 the California Department of Tax and Fee Administration reported their first quarter tax revenues for pot sales and they came in at a whopping $60.9 million.

California made $60.9 million in tax revenue from cannabis sales in the first quarter of 2018, according to the California Department of Tax and Fee Administration. 
The revenue collected includes state cultivation, excise and sales taxes, but doesn’t include local tax revenue collected by cities or counties, the agency said. 
California voters approved Prop. 64 – the Control, Regulate and Tax Adult Use of Marijuana Act – in November 2016. On January 2018, two new cannabis taxes went into effect: a cultivation tax on all harvested cannabis that enters the commercial market and a 15 percent excise tax on the purchase of cannabis and cannabis products. – NBC Bay Area News
Should cannabis eventually be removed from the Federal government's Drug Schedule, or should a majority of states legalize the drug in their own right, then the potential for both cannabis and hemp to become multi-billion dollar industries is highly likely, and could become a key component in helping states and municipalities deal with their overwhelming debt burdens.


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