News

Actions

Cannabis taxes pick up in California but still far off target

Posted at 6:39 PM, Aug 15, 2018
and last updated 2018-08-15 21:39:02-04

LOS ANGELES (AP) – When it comes to the taxman, California’s legal pot market is getting a sluggish start.
    
Marijuana cultivation and excise tax collections hit $48 million between April and June, state officials announced Wednesday. That’s a jump from the prior three months but well below the windfall envisioned by the state.
    
Finance officials had estimated California would bank $185 million from excise and cultivation taxes in the first six months of broad legal sales, which kicked off Jan. 1, but collections by midyear hit only $82 million, not even half of the estimate.
    
The slower than expected flow of cash underscores the bumpy roll-out of the legal market.
    
Illicit sales continue to flourish, taking sales from legal shops. Meanwhile, many areas have banned commercial pot activity.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)