AP News reports, “Legal pot shops are losing customers who can get products more cheaply at illegal outlets that don’t charge or pay taxes, said Adam Spiker, executive director of the Southern California Coalition, a trade organization that represents cannabis growers, distributors and dispensary owners.”
One of the selling points for legalization was it would generate a tax windfall for state and local governments. However, during the first quarter, the state reported only $34 million from cultivation and excise taxes, putting it on pace to fall well below the $175 million forecast for the first six months.
In April, state regulators sent nearly 1,000 cease-and-desist letters to cannabis businesses they suspected were operating illegally. An analysis by the trade publication Marijuana Business Daily found about 64 percent of the businesses were in the Los Angeles metropolitan area.
Read more at https://apnews.com
