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Replies to post #513 on Harvest Health and Recreation Inc (HARV)
Sales of marijuana in California are stronger than ever, just not the legal kind. New taxes drove consumers into the arms of the black market following the legalization of adult-use sales.
Instead of backing off, on Jan. 1, 2020, California raised taxes on cannabis even further. The mark-up rate for arm's length transactions (meaning buying cannabis from an outside vendor rather than producing in-house) increased from 60% to 80% and the cultivation tax rose from $9.25 per ounce to $9.65 per ounce.
Exorbitant taxation isn't the only deterrence that multi-state operators face in California. In November, the state suspended 407 permits for marijuana businesses that hadn't taken the necessary steps for the track-and-trace program, effectively halting operations of retailers and the distributors they rely on.
