The following article is intended to educate the public and dispel common misconceptions about the legality of marijuana in the United States. People who consume cannabis can do so legally in 32 states, and in four states, recreational use is permitted. However, people who grow or sell marijuana are subject to arrest, imprisonment and even death at the hands of the Federal Government. The following article will help inform the public on what is happening behind the scenes in the marijuana industry and why the Federal Government is taking it so seriously.
Most people are aware that Colorado is known for being the state that sells the most weed, but it wasn’t always so. In fact, it’s only been in the last few years that the legalization of recreational marijuana has taken off and now Colorado is one of the top states when it comes to the number of stores that sell recreational cannabis.
Because of its proximity to Canada, California is the largest state that sells the most marijuana in the US. That may be surprising to some people, since the vast majority of Americans have never had the opportunity to go to California and purchase marijuana legally.. Read more about what state has the best weed 2020 and let us know what you think.
The U.S. Department of Commerce placed the no-longer-so-little cannabis dispensaries in a tiny category dubbed “miscellaneous shop retailers” in its July retail sales statistics.
The Wolf Report examined at one state and found that the surge was partially driven by cannabis retail sales, as sales at the nation’s various store merchants increased by 3.5 percent in July from June to a record $14 billion — at a time when overall retail sales were lagging.
California is in the lead.
Wolf Richter, the report’s author, utilized California’s cannabis industry, which is presently the world’s biggest, as an example, and discovered the following.
According to the California Department of Tax and Fee Administration (CDTFA), taxable cannabis sales in the second quarter increased by 11.2 percent from the first quarter to $1.4 billion. Since the second quarter of 2020, legal sales have increased by 24.4 percent, and by 108 percent since the second quarter of 2019.
The CDTFA clearly only monitors taxable marijuana sales, and its statistics exclude medical marijuana sales, which are not taxed, as well as black-market marijuana sales, which are reportedly off the charts and often exceed legal marijuana sales.
However, the legal market, which has been operational since January 2018, is thriving.
The development of the new industry of legal recreational cannabis is being tracked here, with taxes collected in three areas: excise tax, cultivation tax, and cannabis sales tax.
This year, the bar is being raised.
In California, taxable cannabis sales totaled $5.1 billion in the last year, increasing 48 percent from the same time the previous year. Each quarter’s trailing 12 months are shown in this graph. The Wolf Report observed, “There aren’t many store sectors out there with this type of growth trend.”
Cannabis, like alcohol and tobacco, is an excellent target for high taxes. This is likely to keep the illicit market afloat and encourage individuals to seek medicinal marijuana prescriptions in order to take advantage of the fact that MMJ is tax-free. Despite the high taxes, hundreds of people still go into cannabis stores every day to purchase pot, “thus the red-hot rise of taxable marijuana sales.”
Consider when everything is lawful.
Imagine how things will look when the industry is fully legalized, with medical and recreational cannabis retailers classified as part of the “miscellaneous store retailers” by the North American Industry Classification System (NAICS), and if sales at these “miscellaneous” shops keep up their red-hot sales.
“When this sector is made legitimate under federal law, the large companies that have been orbiting it will pour in heavily. Then, maybe, cannabis merchants will be given their own NAICS code,” Richter said in the Wolf Report.
Thousands of legal cannabis stores are raking in cash that are helping to prop up the country’s retail sector, whether they have their own classification or not.
With a growing number of states legalizing marijuana for both medicinal and recreational use, few would have expected the state that sells the most weed would be Kentucky, a deeply conservative state that has traditionally been the least likely to legalize any drug.. Read more about what state has the best dispensaries and let us know what you think.
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