California’s first recreational marijuana dispensaries open in 2018 after voters overwhelmingly approved full legalization with Proposition 64 at the end of 2016. But with the newfound dispensaries comes a lot more overhead for cultivators, dispensaries, and consumers.
While numbers haven’t been finalized, many cities and counties could impose heavy taxes on recreational weed, increasing prices by up to 70%. This would bump costs for an eighth from $35 to $50 or even $60, punishing the nascent marketplace with high usage fees. Statistics show that the average consumer of marijuana spends approximately $750 a year on everyone’s favorite plant. Under such heavy taxation, that number would jump to over $1100 without an increase in quantity! Thankfully, there remains a solution: many recreational users in California utilize cannabis for medical reasons, but aren’t taking advantage of the tax benefits they can receive right now and into 2018 by getting a medical marijuana recommendation. While taxes will depend on specific cities and regions, medical marijuana users will see a far smaller increase in prices. For instance, in Los Angeles, medical marijuana users will not pay the 10% sales tax, and will see a 5% city tax, as opposed to a 10% city tax on recreational users. Medical marijuana patients are therefore paying a quarter in taxes than what recreational users will. In some cities, that cost savings will inevitably be higher. Getting a medical marijuana recommendation from a licensed professional can be done in person or online. Doctors who specialize in medical marijuana evaluations can examine you and ask a few simple questions to determine your eligibility. And there are a range of medical conditions that qualify, such as:
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