I'm a few blunts down / a few brownies of the finest wonder woman smoke Ive ever seen and was readin the article that medical despesiaries voluntarily raised their own taxes from 1.50 to 18.50 per 1,000$ worth of sales. While the outside on looker might see this as an encouraging thing to help california's struggling 26 B dollar defeict I see this a set back to marijuana legalaztion. California is getting close to marijuana leglazation being its only outlet to fiscally save the state. By the extra money these despensairies are now providing they are delaying the need for this money. I think they've decided to pay the extra tax because they feel threatened that if California were to favor overall legalaztion they're would no longer be need for these dispensiaries that are generating on avg 2 million dollars a month. Could be faded but somethin dont sit right...Whatchall think??
Dispensary's threatened by Legalization?
- Thread starter The Prof
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Hightide805
New Member
Re: Dispensiary's threatened by Legalaztion??
interesting.. i guess it makes some sense, but there would still be some kind of dispensaries if it were legal, even if the supermarket sold it there would be a mom and pops place or something...
interesting.. i guess it makes some sense, but there would still be some kind of dispensaries if it were legal, even if the supermarket sold it there would be a mom and pops place or something...
Re: Dispensiary's threatened by Legalaztion?
I think the dispensaries are still in a mode where they need to firm up their standing and solidy acceptance. The feds were using taxes as an excuse for raids. The more cleary taxes are provided the better the acceptance?
When legalization comes, there will still be a need for distribution. Not all people have the ability or patience or willingness to grow their own.
It's been many years since alcohol prohibition was repealed and we still have liquor stores.
That said, the price should plummet because the risk component will be priced out.
Just my opinion
I think the dispensaries are still in a mode where they need to firm up their standing and solidy acceptance. The feds were using taxes as an excuse for raids. The more cleary taxes are provided the better the acceptance?
When legalization comes, there will still be a need for distribution. Not all people have the ability or patience or willingness to grow their own.
It's been many years since alcohol prohibition was repealed and we still have liquor stores.
That said, the price should plummet because the risk component will be priced out.
Just my opinion
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Re: Dispensiary's threatened by Legalaztion?
Thats true but u dont have to go to a liqour store for beer or wine. Maybe they'll let the clinics hold the strongest strains. Either way they're lookin at major money loss
Thats true but u dont have to go to a liqour store for beer or wine. Maybe they'll let the clinics hold the strongest strains. Either way they're lookin at major money loss
Re: Dispensiary's threatened by Legalaztion?
You've got to go to the liquor stores in some states (Maryland for example).
It should be the states and localities setting their own standards not the Feds (or at least that was the constitutional idea).
You're right the artificially high price (or at least cost) should plummet when legal. I can however see the states replacing the cost reduction with taxes to maintain the same or at least a high market price though (unfortunately).
Just my prediction though; who the heck knows
You've got to go to the liquor stores in some states (Maryland for example).
It should be the states and localities setting their own standards not the Feds (or at least that was the constitutional idea).
You're right the artificially high price (or at least cost) should plummet when legal. I can however see the states replacing the cost reduction with taxes to maintain the same or at least a high market price though (unfortunately).
Just my prediction though; who the heck knows
Hightide805
New Member
Re: Dispensiary's threatened by Legalaztion?
yeah i remember i was in nyc and we couldn't get liqour at the corner store.. i was kinda shocked... they said all we have is beer/wine permits.. so they could make bud legal but still only sell at dispensiarys or something to that effect.
yeah i remember i was in nyc and we couldn't get liqour at the corner store.. i was kinda shocked... they said all we have is beer/wine permits.. so they could make bud legal but still only sell at dispensiarys or something to that effect.
Re: Dispensiary's threatened by Legalaztion?
I think this is the future business model.
I'd imagine (hope) that when legal it will still be restricted so children can't get at it. Distribution should be accessable and taxes should be paid (again just my personal opinion).
This is what Medical Marijuana Inc. is trying to help the dispensaries prepare for. A taxed, regulated, normal distribution structure.
The future looks green to me
Disclosure - I do own some MMI stock
I think this is the future business model.
I'd imagine (hope) that when legal it will still be restricted so children can't get at it. Distribution should be accessable and taxes should be paid (again just my personal opinion).
This is what Medical Marijuana Inc. is trying to help the dispensaries prepare for. A taxed, regulated, normal distribution structure.
The future looks green to me
Disclosure - I do own some MMI stock
Re: Dispensiary's threatened by Legalaztion?
I think it will be quite interesting to see how MJ distribution, sales, and taxes will work out in a post-legalization world.
I would imagine that the state and federal taxes will chew up any price break due to the loss of the "risk component"... hell, I suspect it will actually be more expensive than today's prices. The state and feds tax the crap out of smokes and alcohol... I see no reason to think they will not do the same to legalized MJ.
I can just picture some senate sub-committee... "Well gee boyz... if it's $400/oz on the street now, and we can provide it for $100/oz, why shouldn't we use that $300 for drug education and rehabilitation programs?". Of course, we all know that that $300 will get used for war or other things that will drive us crazy, but that's another rant.
Of course, having said that, I see no reason why those profits don't go for helping our economy instead of lining the pockets of some sleazy 3rd layer dealer.
I would love to see some of the emerging MJ dispensary companies attempt to introduce responsible and sane industry wide standards. Perhaps the governmental agencies can use their standards when implementing any sort of legalization program.
my 2 cents
Cheers
I think it will be quite interesting to see how MJ distribution, sales, and taxes will work out in a post-legalization world.
I would imagine that the state and federal taxes will chew up any price break due to the loss of the "risk component"... hell, I suspect it will actually be more expensive than today's prices. The state and feds tax the crap out of smokes and alcohol... I see no reason to think they will not do the same to legalized MJ.
I can just picture some senate sub-committee... "Well gee boyz... if it's $400/oz on the street now, and we can provide it for $100/oz, why shouldn't we use that $300 for drug education and rehabilitation programs?". Of course, we all know that that $300 will get used for war or other things that will drive us crazy, but that's another rant.
Of course, having said that, I see no reason why those profits don't go for helping our economy instead of lining the pockets of some sleazy 3rd layer dealer.
I would love to see some of the emerging MJ dispensary companies attempt to introduce responsible and sane industry wide standards. Perhaps the governmental agencies can use their standards when implementing any sort of legalization program.
my 2 cents
Cheers
Re: Dispensary's threatened by Legalaztion?
^^ great points tead
I've seen an analysis somewhere that shows it could be produced and distributed for a few dollars an ounce (including profit margin).
For perspective, the most expensive legal plant sold today is the spice saffron. There are about 3 stigmas per flower and they are picked by hand and separated "in the field". It takes hours upon hours to get the 200,000-250,000 needed for one pound. saffron
Production cost ~$100/Oz
I'd think mass produced MJ (minus risk and tax) would be more like the cost of wheat or at worst coffee.
^^ great points tead
I've seen an analysis somewhere that shows it could be produced and distributed for a few dollars an ounce (including profit margin).
For perspective, the most expensive legal plant sold today is the spice saffron. There are about 3 stigmas per flower and they are picked by hand and separated "in the field". It takes hours upon hours to get the 200,000-250,000 needed for one pound. saffron
Production cost ~$100/Oz
I'd think mass produced MJ (minus risk and tax) would be more like the cost of wheat or at worst coffee.
Re: Dispensary's threatened by Legalaztion?
Wow... I always thought Safron was way more expensive to produce than MJ.
I could see a large facility producing at say $10/oz (I'm a fan of round numbers). I'll be very curious to see what kind of tax rate we'll be paying upon legalization.
Cheers
Wow... I always thought Safron was way more expensive to produce than MJ.
I could see a large facility producing at say $10/oz (I'm a fan of round numbers). I'll be very curious to see what kind of tax rate we'll be paying upon legalization.
Cheers
Re: Dispensary's threatened by Legalaztion?
Agreed
Let's hope it happens soon
Agreed
Let's hope it happens soon
spacecadet
New Member
Re: Dispensary's threatened by Legalaztion?
i honestly cant imagine paying 10 bucks an ounce.... theres no way the government wouldnt tax the piss out of it and make the cost at least the same if not more than it is now.
i honestly cant imagine paying 10 bucks an ounce.... theres no way the government wouldnt tax the piss out of it and make the cost at least the same if not more than it is now.
Re: Dispensary's threatened by Legalaztion?
rather than it being a deterrent to legalization IMHO it draws the government down the path of budgetary dependency (who said MJ wasn't addicting? The money is!) on this revenue with a vested interest in expanding it like legalized gambling has.
rather than it being a deterrent to legalization IMHO it draws the government down the path of budgetary dependency (who said MJ wasn't addicting? The money is!) on this revenue with a vested interest in expanding it like legalized gambling has.
I can remember when a dime bag was $10.00. That is a 4 finger bag for those younger members...lol. I think with the number of legal grows out there, and more coming online daily, that prices for good grade stuff will drop. It will force the not so legal growers to reduce pricing as well, just supply and demand.
optikool
New Member
I think voting for the $18 dollar hike was a good thing. It brought more legitimacy and also showed the city what it's citizens thought of Marijuana. When the money starts rolling in and those dollars start helping the city of Oakland, the DEA will probably have a harder time busting those shops as they will then be messing with the cities revenues. If this $18 dollar hike proves to be a success, other cities in California will think seriously on adopting that model. I heard somewhere there was a ballet sitting on standby that will be enacted if Assembly Bill 390 doesn't pass where the people can vote to legalize and regulate marijuana.
If marijuana does become legal marijuana shops will most likely change their model and sell to the general public as long as they are over 18. They will generate more revenue since people will be more inclined to purchase marijuana legally instead of illegally. Illegal seller should decline slowly as they loose there customer base. Legal growers will see a boost as the demand for legal marijuana takes hold. DEA can spend more of there time going after the plants in the national forests and drug cartels. If they are smart, which they most likely aren't, they would confiscate those plants and sell them to the marijuana shops thus making a profit with free plants and taxes, although the state should probably get to those plants first so that the state benefits. One good thing about this recession is it's getting the state governments thinking about it. And with lobbyists now out promoting the legalization hopefully we will see a change soon.
That's my thinking anyway.
If marijuana does become legal marijuana shops will most likely change their model and sell to the general public as long as they are over 18. They will generate more revenue since people will be more inclined to purchase marijuana legally instead of illegally. Illegal seller should decline slowly as they loose there customer base. Legal growers will see a boost as the demand for legal marijuana takes hold. DEA can spend more of there time going after the plants in the national forests and drug cartels. If they are smart, which they most likely aren't, they would confiscate those plants and sell them to the marijuana shops thus making a profit with free plants and taxes, although the state should probably get to those plants first so that the state benefits. One good thing about this recession is it's getting the state governments thinking about it. And with lobbyists now out promoting the legalization hopefully we will see a change soon.
That's my thinking anyway.
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