Critism of analysis of local marijuana taxes in California

“an independent California cannabis tax expert . . . said that . . . the city (Lemon Grove) could bring in $560,000 at 4 percent and $1.12 million at 8 percent.”

https://www.sandiegouniontribune.com/communities/east-county/lemon-grove/story/2020-07-11/lemon-grove-moves-forward-on-taxing-cannabis-dispensaries

$560,000 X 2 = $1.12 million.

So if the city taxed it at 16%, they would bring in $2.24 million, and if they taxed it at 32%, they would bring in $4.48 million, and if they taxed it at 64%, they would bring in $9.96 million?

Well, there wouldn’t be a huge drop-off going from 4% to 8%, but there would be at least SOME bit of migration to the black market and to lower-tax jurisdictions.  So revenues would not exactly double.  They’d be less.

Close enough for government work?

How tax competition can threaten marijuana revenue

How tax competition can threaten marijuana revenue

Pat Oglesby, opinion contributor

Here’s what to know about cannabis tax competition.

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