After-tax marijuana price target: $35 an eighth

I had the good fortune to be co-chair of the Regulatory and Tax Structure Working Group of the California Blue Ribbon Commission on marijuana legalization – a project of the Lieutenant Governor and the ACLU of Northern California.  In connection with that work, I spend two nights and parts of three days in Humboldt County, the heart of the cannabis-growing Emerald Triangle.  During a drive between San Francisco and Humboldt, I asked Terrance Alan, a long-time prominent member of the California cannabis community, what would be a fair after-tax price after legalization.  I got a quick answer: “$35 an eighth.”  That’s $35 for an eighth of an ounce.  With standard quantity discounts, that results in a full ounce selling for under $250.

Maybe my friend Terrance would like to keep the price high by providing income to growers; maybe I would just as soon see the government get a lot of the money.  But public health folks like high after-tax prices, too.

After-tax prices in California are still high, as the market gears up — in the range of $40 to $70 an eighth.  But in Oregon, where prices have collapsed, and with a low, price-based tax, grams are selling after tax for $4 – or $14 an eighth.

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One thought on “After-tax marijuana price target: $35 an eighth”

  1. Interesting article. IMO, the goal should be a price that benefits patients, adult users, and growers as well as the state. I’ve heard quotes for ounces in NC as high as $400 per ounce. That price may benefit the growers/dealers, but not the consumer. Given the quality controls/testing, etc. that legalization imposes, I’d be happy to buy a $250 ounce!

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