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Legalization in California, Part 2

California is now among the recent states to legalize Marijuana. The legalization, however, comes with some restrictions that must be followed by its consumers and distribution companies (as previously stated in our Legalization in California, Part 1 post).

Carrying weed through the airport is strictly prohibited, as airports still operate under federal laws (which classify it as illegal even if it is for medicinal purposes). Trying to cross borders with it can attract legal action from the authorities. To be on the safe side, just use it in the state you bought it in.


Marijuana Taxation

Just like any other business, the selling of marijuana is subject to taxation. The tax collected from marijuana is as good as any other. Different states channel the revenues toward accomplishing various tasks. In some regions, the income is used to sponsor kids to college or even help the homeless.

California imposes a 15% tax on marijuana distribution companies in addition to cities and towns also being required to submit their fees. These taxes are then released to various sectors in varying percentages, the first function covering marijuana regulatory costs. The amount is distributed to the multiple agencies overseeing the industry in California: some of the departments that get a share of the tax revenue include the Department of Consumer Affairs, Occupational Safety and Health, and the Department of Fish and Wildlife.

Even though marijuana is not allowed in learning institutions, the tax from it has been known to provide funding for some schools. Public universities get their share which is used for conducting more research on marijuana, its impact on the public health, and the economic impact on the state and public safety.


What will happen to the black market?

Legalizing marijuana is expected to impact black market pricing negatively. Like many restricted drugs, marijuana is also smuggled even under the strictest of laws. Recent research has shown that almost half of California’s marijuana is sold in black markets. It is not very clear how legalizing marijuana will affect the black market, but it is thought that its flow in the black market will be significantly reduced making it more expensive.

Legalization experts have suggested selling marijuana through the state’s legal system to minimize its circulation in the black market. They also believe it would double the taxes since the government incurs enormous loses when it is sold in black markets. Their opinion, however, has stirred many reactions from various groups with some of them believing it would create the wrong impression of being useful in the minds of children.


Understanding all the rules that come with legalization within certain states will you be on the right side of the law.


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