California Collects $60.9 Million In Taxes In 3 Months From Marijuana Users, Growers

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LOS ANGELES, CA - OCTOBER 19: Dave Warden, a bud tender at Private Organic Therapy (P.O.T.), a non-profit co-operative medical marijuana dispensary, displays various types of marijuana available to patients on October 19, 2009 in Los Angeles, California. Attorney General Eric Holder announced new guidelines today for federal prosecutors in states where the use of marijuana for medicinal purposes is allowed under state law. Federal prosecutors will no longer trump the state with raids on the southern California dispensaries as they had been doing, but Los Angeles County District Attorney Steve Cooley recently began a crackdown campaign that will include raids against the facilities. Cooley maintains that virtually all marijuana dispensaries are in violation of the law because they profit from their product. The city of LA has been slow to come to agreement on how to regulate its 800 to 1,000 dispensaries. Californians voted to allow sick people with referrals from doctors to consume cannabis with the passage of state ballot Proposition 215 in 1996 and a total of 14 states now allow the medicinal use of marijuana. (Photo by David McNew/Getty Images)

SACRAMENTO (CBSLA) — Legal recreational marijuana sales netted the state of California $60.9 million in tax revenue in the first three months of 2018, according to the state’s tax agency.

The California Department of Tax and Fee Administration says more than half of that money, $32 million, came from the state’s new excise tax on marijuana products. It adds a 15% fee on top of every marijuana purchase, in addition to any local and state sales taxes. (The state also imposes excise taxes on alcohol and gasoline, among other products.)

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State sales tax revenue from marijuana sales pulled in an additional $27.3 million. Cannabis users are exempt from sales tax if they have a valid Medical Marijuana Identification Card, but they must still pay the 15% excise tax.

A state tax on marijuana cultivation, which applies to anyone growing marijuana in California, brought in $1.6 million.

Legal marijuana sales are eventually expected to net state and local governments $1 billion a year in taxes.

Source:http://sacramento.cbslocal.com

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