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Showing posts from January, 2018

What Does Tax Revenue Mean To You?

Jan 1, 2018 marks a historic time in California’s history.  California became the 8th state to legalize recreational marijuana use.  California has approved marijuana for medical use since 1996, and according to the Board of Equalization, “…through June 30, 2016, $575,021,347 taxable sales of marijuana were reported to the BOE.” California has realized the lucrative business that marijuana sales generate.  2018 recreational marijuana tax revenue is projected to reach over $1 billion!
$1 billion in additional tax revenue will mostly be felt by the consumer in the form of excise tax and use tax.  Starting 2018, there will be another 15% excise tax on all recreational marijuana products.  However, if a medical marijuana card is presented upon purchase, the excise tax is not in effect and the consumer will not incur the additional 15% tax.
To understand and rationalize why the high tax on recreational marijuana, we need to look at the cost of enforcing marijuana possession laws.  According…
Location, Location, Location.
The time has finally arrived! The first adult use cannabis customer has made a purchase legally in California.Although CA is not the first state to legalize cannabis is it by far the largest.It is not breaking news that thousands of people have been and will continue working to enter the cannabis space in California in hopes of capitalizing on the huge opportunities.A lucky few have already begun or completed the process to enter the market legally starting January 1, 2018.Most of these businesses have been operating in the medical market and have a proven track record, others will be opening their doors or hitting the shelf with their product for the first time.Either scenario has one common denominator - they have a location. The most well thought out business plans are just words on paper until a location is secured.It seems so simple, buy or rent a space and open your business.Thousands if not millions of people have started their own small busines…