The California Department of Tax and Fee Administration reported today that cannabis legalization and taxation in the state came in the nick of time. Just when the state is under extreme fiscal pressure, cannabis is pulling through: Cannabis tax revenues in the second quarter soared 32.6% from a year ago, to another record of $208.4 million (not including revenues collected by cities and counties). And this during the Pandemic!
Over the first two quarters combined, cannabis tax revenues, at $414 million, were up by 44% from the same period in 2019 and by 150% from the same period in 2018. This activity – not weed per se, which has always been a big popular business in the state, but the switch from black-market weed to regulated and taxed weed – has had a growth rate like hardly any other in the state at the moment:California Cannabis Tax Revenues Soar as Industry Gets Going, But Black Market Still Dominates | Wolf Street