Thinking about buying recreational pot in 2018? That high will come with high taxes. California stands to make about a $1 billion in annual tax revenue when recreational pot becomes legal next year.
Associated Press reporter Mike Blood estimates that customers could end up paying close to 70% more than the sticker price. He broke that number down for Take Two:
If you take the cost of a good quality medical marijuana at a dispensary in LA, about 1/8 of an ounce will cost you $35.
Next year, beginning with the new economy, you're going to have a 15% state excise tax that will be applied to that purchase.
There will be a 10% city tax that's expected to get rolled over to the consumer.
Then you're gonna pay the regular sales tax, which is another 10%.
You add in some costs of business that are expected to go up and very quickly you could get to $50, $60.