Currently, it is the largest legal marijuana market in the world. California, by the way, has been approaching the topic of cannabis more liberally than everyone else for years. Currently, this American state is achieving huge profits from the cultivation and sale of marijuana.
What will you learn from this article?
👉 What are the benefits resulting from legalization using California as an example?
👉 What changes can legalization cause?
Table of contents:
Benefits of legalization
Hot and sunny California is that corner on the globe from which the most recognized and some of the best marijuana varieties come from. Decriminalization of marijuana took place here in 1976 – when the Senate decided that possession of cannabis was merely an offense. On the other hand, in 1996, medical marijuana was legalized.
This makes California the first American state to decide on such a step. It was also an impetus for the legalization of cannabis not only for subsequent states of America. After California, 28 other countries decided on the legalization of medical marijuana in the following years.
The dot on the “i” for California’s liberal approach to cannabis and the decision to allow medical marijuana is the legalization of the herb for recreational purposes. This took place thanks to a referendum that took place in 2016.
The majority of state residents voted in favor of marijuana legalization. Result? Since January 1, 2018, every California citizen over the age of 21 has the right to grow 6 cannabis plants and possess up to 1 ounce of herb (29 grams). Marijuana smoking is only prohibited in public places, but this restriction also applies to cigarette smoking.
Billion-dollar profits from marijuana
The legal recreational marijuana market after four years brought California over €0.96 billion in profits. This includes taxes from cultivation, sales, and excise duties. To illustrate this better, it is worth citing data from the Department of Tax and Fee Administration (CDTFA).
In the first quarter of 2022 alone, the California state budget collected €70.56 million from marijuana sales. Although this is a lower result than in the last quarter of 2021, as is known, every industry must contend with a downward trend.
Billions that flowed into the state budget since 2018 are allocated to economic development, cultural support, and communities affected by the war on drugs. However, legalization was also supposed to be an effective way to combat the black market.
Here, however, the effect is the opposite. Very high taxes for farmers growing cannabis have made legal herb significantly more expensive than before legalization. As a result, black market marijuana is cheaper than that from the legal market, and often of better quality as well.
However, not everyone can be satisfied. The main goal that California set for itself – a billion dollars in annual revenue from cannabis – has been achieved.
(4.7/5)