This is an exciting year for the cannabis industry. California’s recreational sales began last month. Nevada’s recreational sales began last July, and Canada is set to legalize cannabis for all adults 18 and up, starting this July. Things are of course, going well for Washington state, Colorado and Oregon as well. The cannabis industry is doing well on the medical side as well, with states such as Florida and Ohio kicking off their medical programs later on this year as well
While this is certainly exciting news for everyone in the cannabis industry and those who benefit from it, there are still some challenges. Starting any sort of cannabis business is a challenge, both because of the cost and the legal hurdles that potential business owners go through in order to open and operate their businesses. Competition among dispensaries and growers is expected to be very fierce, particularly in the recreational states. Only the best businesses will survive.
In addition to the intense competition, there are other hurdles to be crossed as well. Of course, what I’m speaking of is cannabis prices. For the first couple of years at least, taxes on cannabis and cannabis products is going to be extraordinarily high. High taxes were of course one of the requirements for getting cannabis legalized in these states in the first place. In Washington state, for example, the tax rate for selling cannabis products is 37 percent. In Colorado, the tax rate for selling any cannabis products is 10 percent, along with a 15 percent excise tax on wholesale cannabis transfers. This is along with the normal 2.9 percent sales tax in Colorado. So, it’s safe to say that cannabis prices will be slightly larger than average in some areas of the country.
California, in particular is set to have the highest prices on cannabis. This is due to a number of reasons. First of all, the wildfires that ripped through the state throughout the last couple months of last year destroyed much of California’s cannabis crops and many farmers’ livelihoods. This cut to the supply chain will no doubt lead to increased demand, which will then lead to higher prices. More importantly is the exorbitantly high tax rate in California. According to state data on insidegov.com, the tax rate, which will be different from county to county, will vary anywhere from 7.75% in Humboldt to 9.5 % in Los Angeles County.
Don’t despair though! Thanks to services like Leafbuyer, customers will be able to find all of the best prices, not to mention tons of deals at dispensaries, no matter the area they live in. With services like Leafbuyer’s, customers won’t be forced to return to the black market, which can leave them vulnerable to additional crimes such as robbery and assault. It should also go without saying that buying cannabis in this way is illegal, and can lead to much larger costs in the long run, despite what might seem like short term benefits. That 35 dollar bag can lead to costly consequences you certainly had not anticipated, possibly even a criminal charge.
This is what is so great about Leafbuyer. Services, such as the kind provided by Leafbuyer, ensure that customers stay safe, while also getting them the best deal possible! It’s a must for this changing cannabis industry.