Medical marijuana in California is now free of tax following the state’s recent legalization of recreational marijuana.
However, supporters of recreational marijuana will have to wait until 2018 to enjoy most of the provisions that come with their approval of Proposition 64 during the ballot day.
California residents legalized the sale of recreational pot after voting in the law earlier this month.
Prior to the election, the state taxed medical marijuana.
This development now means that the tax burden has moved from marijuana patients to recreational users of the substance. It will take 14 months for legal weed to be sold for recreation but many marijuana proponents will be pleased to hear that taxes on medical marijuana have been scrapped off with immediate effect.
The process of licensing new pot shops for recreational marijuana is quite lengthy and it is highly likely that many interested joints may take a while to get ready. What this means is that the 15 per cent excise tax may not start immediately in January 2018, either.
As expected, this situation means bad news for the government because the state might lose millions in revenue.
According to Stanford University professor Keith Humphreys, some recreational users may be forced to acquire medical marijuana cards in order to cut their budgets between now and 2018.
Businesses that deal with marijuana can also choose to ignore the law in order to please their customers.
To purchase medical marijuana, one needs to prove his or her medical condition, you will also need a “green card” which comes at a price of $100. Currently, Californian has less than 4,000 active cards.
According to another analysis, the state is likely to create up to 130,432 jobs when the cannabis business starts working.
With new taxes to look forward to in 2018, California may bring in tax revenue of up to $1 billion and hence force a shift away from the existing black market.
Elsewhere
Authorities raided a residence in Moore County on Tuesday, confiscating marijuana worth $2.1 million and arresting an Asherboro man in the process.
Deputies found a large-scale indoor marijuana growing business; they seized growing lights, fans, 109 marijuana plants, fertilizer and other equipment for growing the plants.
According to the sheriff’s office, the 25-year-old Jose Ginante Aliaga was arrested and charged with manufacturing of marijuana, trafficking of marijuana, felony possession of marijuana, possession of drug paraphernalia, property damage, felony maintaining a dwelling to store a controlled substance and felony larceny. He was jailed under a $200,000 secure bond.
The Moore County Sheriff’s Office obtained a search warrant to conduct this operation as part of a larceny of power investigation.
