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California's High Taxes and Regulation Mean Black Market for Marijuana is Still Appealing

Opinion: high taxes and burdensome regulations are prompting a lot of Californians to continue to buy their marijuana on the black market.

California Flag Adobe Stock Credit Kennytong Resized

Successful legalization of cannabis in California would crush black markets. However, right now high taxes and burdensome regulations are prompting a lot of Californians to continue to buy their marijuana on the black market.

“This is an industry in crisis,” Kristi Knoblich, president of the California Cannabis Industry Association, said recently. “This is me sounding the alarm.”

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A February report from the California Growers Association concluded that “current cannabis tax policy is propping up the illicit market, preventing compliance from good-faith operations, and contributing to price increases for patients and consumers.”

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To fend off the proliferation of a parallel black market in California, three regulatory areas must be addressed.

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Top Image: © kennytong | Adobe Stock

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