In the fight to legalize marijuana, and hopefully gain a profit from it, studies are showing that legalization of the plant could slash the price of pot by 80%.
On Wednesday, Rand Corp.’s Drug Policy Research Center said that not much is certain about the potential impact of Proposition 19, except that the price of California’s choicest weed could plunge more than 80%, down from $300 to $450 per ounce to about $38.
Researchers also observed that consumption would rise if the price decrease. The low prices could also affect pot prices across the nation, encourage marijuana tourism in the state, increase the amount of pot shipped out of state, and disrupt the smuggling of marijuana from Mexico. The report stated that it wasn’t possible to fully predict tax revenues, but did state that tax revenues could range from $650 million to $1.49 billion.
Taxing the marijuana could benefit California cities as well. The city of Long Beach, located in Los Angeles County is faced with a $17.5 million deficit. The city council voted to hold a public hearing next month on whether or not to place a measure on the November ballot which would put a %5 percent tax on medicinal marijuana collectives.
Long Beach wouldn’t be the only city that taxes marijuana, Oakland already taxes medicinal marijuana as well. The city of Oakland expects a $1 million revenue from a tax on only 4 medical marijuana dispensaries.
If Prop 19 passes this year, Long Beach’s plan would also place a 10% tax on marijuana businesses.