California did legalize medical marijuana several years ago and the advocacy for weed reforms didn’t stop there. The push for recreational marijuana in recent times has taken center stage and it is on the verge of getting legalized. Many counties and cities in California can smell dollars coming their way with what looks like a lucrative business involving the trade of marijuana. In few days to come, California will go to the ballot to engage in an exercise seeking the legalization of weed through what has been drafted as the Proposition 64. This proposition along with the decriminalization of weed seeks to impose state tax on the growing and sale of cannabis. Again, it also permits local jurisdictions to impose their own taxes, a decision that is much welcome by counties and cities in California.
Are there any concerns?
Marijuana business has faced many challenges and resistance in the past and with a move to legalize it, things don’t seem to proceed easily. Looking at the issue of taxes, economists say that it would be important to go slow on it despite the business presenting many opportunities to make money. The fear in the trading of weed, California lies in the possibility of imposing burdensome fees and taxes. Experts say that this could backfire and get marijuana back to the dark old days.
Even with the possibility of earning from these taxes, business professionals advise that the issue be handled with a lot of care in order to make the drug serve the purpose for which it was legalized. Yes, many county and city officials are persuaded that the trading of both recreational and medical marijuana will boost revenue collections. This is expected and it will definitely be one of the positive things to be associated with weed for sale. There will be above 60 local weed measures appearing on the November 8, 2016 ballots all over California during the election. One of the counties optimistic about the revenue from marijuana is Monterey, which estimates around $30 million coming its way. This is almost double the budget deficit of the county which is in the neighborhood of $16 million.
Will the plan to collect revenue suffice?
For Coalinga city in Fresno county, marijuana tax revenue collection is believed to deal with a budget crisis of about $3 million. This revenue collection is targeted by cities and counties in and around California. King City in central California anticipates between $1 million and $2 million. Ideally, there is no other business across California that is believed to generate such an amount of revenue other than cannabis for sale. This has been cited as one of the reasons why communities are interested in the pursuit for marijuana sale. This comes with plans to reinvent the business completely and redefine the cannabis industry and make it a strong pillar in the economy. For instance, Desert Hot Springs located in South California narrowly avoided bankruptcy following a financial crash. In its efforts to address the situation, it passed a law that allowed the taxation of marijuana back in 2014. It is one of the towns that are eager to get revenue from the sale of marijuana. Looking at the benefits coming through in monetary form, the city permitted the planting and processing of cannabis.
Residents in California wait in bated breath to see how things will turn out. Proper regulation and control is expected in order to address any challenges that may come with the marijuana business. This is important in order to avoided elevated costs that may make weed cost too much to be afforded by users and ultimately ruin it.