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Moving Weight: California Predicted To Sell One Million Pounds Of Weed In Year 1

via Influence

California going legal has many rubbing their fingers together ready to get that money. They’re should be plenty to go around. Experts are predicting that one million pounds of tree will be sold this year alone in the state.

Per Merry Jane 

The state’s Department of Finance has predicted that retail cannabis stores will sell over a million pounds of weed during the first full budget year of legalization, from July 2018 until June 2019. Officials expect this unprecedented amount of product to net $3.4 billion in sales, $643 million of which would go directly to the state in the form of tax revenue, The Hill reports. Some of this tax income will be directed to fund the agencies tasked with regulating and overseeing the industry. The rest of the revenue will go towards funding substance abuse treatment programs as well as research into the economic and environmental impact of legalization.

Finance officials said that they expect pre-tax retail costs of cannabis to fall from $3,800 per pound during the upcoming budget year to $3,000 per pound by the 2020-21 budget year. Despite the decrease in price, officials believe that the tax revenue collected by the state will remain constant, as the falling costs will be offset by increased demand for weed. Even though these predictions would make California the most lucrative U.S. state for the cannabis industry, the Finance Department estimates that the market will only grow by 22% each year, significantly slower than other rec-legal states.

The state’s financial analysts arrived at these figures after consulting finance officials from other canna-legal states. Colorado officials reported that their recreational market grew by 40 percent during the first three years of sales, from $76 million in 2014 to $198 million in 2016. Washington’s legal cannabis market has grown even faster, breaking a record of over $1 billion in sales during the 2017 fiscal year. Recreational sales in Nevada have only been legal for six months, but the state is already reporting record growth, selling over $27 millionduring the first month of sales, and $33 million the following month.
That’s a lot of weight to move. Crazy that someone selling just one pound a year ago could have resulted in hella jail time. Crazy, right?
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