Illegal weed distributors are more than holding their own against the heavily taxed and regulated legal outlets
. Photo: Rochelle Brodin/WireImage Whenever family or friends from back East visit me on the Central Coast of California, they expect to find legal pot shops on every corner. Fortunately, I accidentally stumbled on one extremely respectable-looking shop at an upscale strip mall in Carmel, so I can point that out as a local curiosity.
Two years after California began licensing pot shops, the industry remains so outmatched by the black market that a state panel recently joined some legalization supporters in calling for significant changes — perhaps turning again to voters to address the problems.In its annual draft report, the Cannabis Advisory Committee warned Gov.
Assemblyman Phil Ting could not muster the two-thirds vote of the Assembly needed to alter the requirements to prevent cities and counties from banning pot shops. He plans to try again with the bill next year, a representative said …The measure would have required one licensed cannabis store for every six restaurants and bars with liquor licenses, or one for every 15,000 residents, whichever provides fewer pot shops.
Cody Bass said his state-licensed Tahoe Wellness Cooperative has had trouble competing with the unlicensed market when the cannabis it sells is subject to a 15% state excise tax and a 7.75% local sales tax — in addition to the taxes on cultivators that get passed up the supply chain …Jerred Kiloh, owner of Higher Path dispensary in Los Angeles, said while his business is doing well, layoffs have been widespread among most of the 165 members of the United Cannabis Business Assn.
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