Two years ago, west coast California, voted for recreational marijuana to be sold. They estimated a roughly thousands of pot shops and cannabis farms to be established with state licenses offering services to adults consumers.
Now that the end of the year is near, the results are in and California legal market didn't by close reach their expectations. There is a number of reason why what they hoped for didn't reach out: Complex regulations, High Taxes and bans of cannabis shops. If it was not enough already resident of certain neighborhoods are fighting those retailers for not opening their business and police chiefs are giving awareness about marijuana trade crime.
January of next year, Gov.-elected Gavin Newson is suppose to be taken place as legislator and take those numerous challenges. ''The cannabis industry is being choked by California's penchant for over-regulation,'' according to Dale Gieringer, director of California NORML, a pro-legalization group. ''It's impossible to solve all of the problems without a drastic rewrite of the law, which is not in the cards for the foreseeable future.''
After Proposition 64, two years ago, the state estimated around 6,000 cannabis shops with licenses but only 547 temporary and annual licenses were given by the Bureau of Cannabis Control. 1790 stores and dispensaries were paying taxes on medicinal pot sales before licenses were required starting January 1st.
Since January 1st 2017, $471 million has been collected by taxes. It's $160 million less of the $630 million predicted by Gov. Jerry Brown's. States officials estimated a $1 billion in revenue this year, all those miscalculations is caused by cities banning pot shops.
With a low 20% of retails store in function in California cities-89 cities of 482 allow retails stores to sell recreational cannabis. Los Angeles, Oakland, San Francisco & San Diego are examples of cities that allow retailers to establish their business.
According to Alexa Halloran, an attorney specialize in cannabis laws, there's 82 of Los Angeles County's of 88 cities that prohibit retail sales of recreational marijuana. The likes of Burbank, Manhattan Beach, Beverly Hills, Compton Calabasas and many more are subject on not letting run their businesses.
''While some cities have jumped in headfirst, we've taken deliberate approach,'' according to Manhattan Beach Mayor Steve Napolitano, ''to see how things shake out elsewhere before further consideration. I think that's proven to be the smart approach.''
''Because we are up against high taxes and the proliferation of illegal shops, it is difficult right now,'' says Monte. ''We expected lines out of our doors, but unfortunately the underground market was already conducting commercial cannabis activity and are continuing to do so.''
Even with city and state licences since January his business face a 15% state tax, a 10% recreational marijuana tax by the city it self's and a 9.5% in sales tax by the county and state...A total of more than 34% only in taxes.
According to Monte, there is not enough enforcement against illegal operator and because of the hard time the state is given him he had to cut is employees number by half 24 to 12. ''It's very hard whenever I have to lay people off , because they are like a family to me,'' said Montes, Vice President of the United Cannabis Business Assn., which represents firms including the 170 cannabis retailers licensed by the city of Los Angeles.
2,160 growers are licenses in California compare of 50,000 commercial cannabis cultivators before Proposition 64. Some just gave up growing pot and for damn sure there is lots of them still doing it illegally.