LA's staggering cannabis problem could cost the city $400M

[Hume]

Hume's house:

back to ignore

 

[T. A. Gardner]

back to ignore

 

[volsrocks]

Okay, I am kind of bored so will respond.

How could anyone prove what people pay on the black market if by definition it is illegal?

So how do u know how much illegal pot is?

Are u a law breaker?

 

[cawacko]

It's not all taxation. In CA they have slow walked licenses to sell, they do not treat it like alcohol as required in CO where the price dropped "bigly" after an initial increase. Shoot in LA they didn't issue their first license until 2 full years after the state legalized it in 2018. So you either drove to where one of the few licenses were to buy it legally or you bought it from Bob.

The effective tax rate is massive on cannabis in CA though.

High Taxes + Local Tax Stacking (Effective Tax Rate ~40–50%)​

Tax Layer	Rate
State excise tax	15%
State cultivation tax	$9.65/oz flower (pre-2022)
Local business tax	5–10% (LA: 10%)
Sales tax	7.25–10.25%
Total effective tax	~38–50%

• Example: $50 wholesale → $100+ retail just from taxes.
• Illicit market: $0 tax → $150–200/oz vs. $350–450/oz legal.

There are regulatory fees, licensing and compliance costs etc. This isn't gov't related but you have to add security costs. It all adds up to people wanting to still buy on the black market.

 

[Hume]

So how do u know how much illegal pot is?

Are u a law breaker?

Yes, I have purchased pot on the illegal black market. Now I can purchase it legally at stores. It is much cheaper now at legal stores. Again, please do not test my patience by pretending I give a shit whether you believe me.

 

[Grokmaster]

There are regulatory fees, licensing and compliance costs etc. This isn't gov't related but you have to add security costs. It all adds up to people wanting to still buy on the black market.

Yep.

 

[Hume]

There are regulatory fees, licensing and compliance costs etc. This isn't gov't related but you have to add security costs. It all adds up to people wanting to still buy on the black market.

Not in my state. Nor in many other legal states.

 

[volsrocks]

Yes, I have purchased pot on the illegal black market. Now I can purchase it legally at stores. It is much cheaper now at legal stores. Again, please do not test my patience by pretending I give a shit whether you believe me.

So u are a law breaker and a liar

 

[Hume]

So u are a law breaker

I absolutely was, yes.