KSBW TV: California cannabis tax hike raises local concerns over illegal market

EXCERPT:

California's cannabis excise tax has increased from 15% to 19%, raising concerns that the higher costs could drive consumers back to the illegal market and threaten legal businesses.

Juan Manuel Garcia, a resident of Big Sur, said, "It's already pretty expensive living here. And like, there's already a lot of cannabis tax already. So like when you look at the receipt, like half of it is tax. So it's probably going to be a lot more. So definitely not happy about it."

State leaders argue that the tax is essential for funding child care, environmental cleanup, and drug education.

However, cannabis advocates warn that legal sales have been declining for years, and the increased tax could push more people to the black market.

Anthony Gonzales, co-owner of Off the Charts Monterey, said, "More consumers are going to turn to the illicit market, the illegal markets, they're going to turn to online retailers that sell products like THC and CBD. These products are untested. They're not regulated. And they're just not safe. And so we want consumers to shop in dispensaries where we go through rigorous processes to get our license."

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