California’s Revised Cannabis Sales Tax Revenues Lift Gloom of Market’s Early Performance
September 13, 2020
Mainstream Brands Engage CBD Consumer Segment as 66% of Americans Consider Cannabinoid Products
September 18, 2020California’s Revised Cannabis Sales Tax Revenues Lift Gloom of Market’s Early Performance
September 13, 2020Mainstream Brands Engage CBD Consumer Segment as 66% of Americans Consider Cannabinoid Products
September 18, 2020
- California’s revised sales tax revenues depict a better-performing market than previously understood through initial data from its launch of full-use legalization.
- The state reported $44 million more in 2018 sales tax revenue (up 36%) for a revised total of $169 million.
- Throughout 2.5 years (through Q2-2020), sales tax revenues were 20% higher than initially reported, and totaled more than $500 million.
- The higher tax revenues mark positive momentum for a market plagued by operational challenges including long delays in licensing, and the nation’s highest retail tax rates discouraging consumer adoption.
- COVID-19 has spurred accelerated legal sales in California, mitigating some of the state market’s growing pains.
- Still, California’s high taxes and jurisdictional autonomy (with retail bans in nearly half of the state’s counties) will keep illicit markets intractable for the foreseeable future.
