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SF suspends cannabis tax to help dispensaries compete with drug dealers

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Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#21

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

This is something pot activists have complained about from the get-go. Legalization was sold to politicians with the promise of high taxes. We knew that poor users would be priced out of the market, that legal weed would be a privilege enjoyed by the rich, that dealers with criminal records would be shut out of the legal market.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#22

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

From the original article: “Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cannabis tax rates were directly linked to illegal cannabis sales.

In addition to the illegal sales, increased theft is also creating problems for cannabis retailers.”

I’m sure other factors are that retailers have to pay rent and payroll taxes. I have no idea what the price differential is, but I could imagine it being quite significant.

Making things illegal doesn’t mean it goes away. Most often, it just makes it more expensive because people are exposed to more risk from selling it. But if you don’t enforce your laws and there is no risk, then of course the legal version of it can’t compete. If the city didn’t enforce any of its awful zoning laws, housing would be super cheap.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#23
post #4

Earlier quoted context omitted.

It's in the article.

Right, 1%-5%. But I don't think I'd care to deal with illegal product and any possible (even if unlikely) headaches around it just to save $1-$5 for every $100 spent. Seems kinda foolish. But yeah, I suppose if you're also picking up some illegal stuff, makes sense to make it a one-stop shopping trip.

People buying from dealers aren't considering the illegality in the choice at all, though. They're a choice between continuing to buy from someone they know vs entering a storefront that is going to make them provide a bunch of PII on the first visit, which also costs more.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#24
In most recreational states, cannabis is taxed heavily at every step in the supply chain, so the highest quality still ends up being very expensive -- upward of $400/oz. The black market has the exact same quality at the wholesale price, typically 40-60% less than retail, with the added bonus of not having the government involved. For a daily or heavy smoker, a ~50% discount is a massive amount of money.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#26

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

From the original article: “Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cannabis tax rates were directly linked to illegal cannabis sales. In addition to the illegal sales, increased theft is also creating problems for cannabis retailers.” I’m sure other factors are that retailers have to pay rent and payroll taxes. I have no idea wha…

Threat of violence is the only true currency, the final turtle at the bottom of all other currency turtles.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#27
post #12

Earlier quoted context omitted.

I don't smoke weed, (not for moral reasons, I just hate it), but the incentive structures are really weird. My read on the situation is... Government wants to tax the weed and ensure its safe. So there are a ton of regulations which require you to do a lot of extra work and are expensive. That, along with the taxes creates a huge price differential between legal and illegal weed. I thought it was all about taxes at f…

>I thought it was all about taxes at first, but I've come to understand that illegal growers often use toxic pesticides that further increase yield-- and thus it is important to know where your weed comes from. I've always preferred to pay the higher prices for this reason, and the fact that I know exactly how potent something is.

To say nothing of fentanyl. I'd like to remind you also that paying higher prices for something is a privilege of our class.

So I'm going to work blue here for a bit...

Regarding contamination and unsafe drugs-- my best friend and I had a tradition. Once a year around the end of the year, we'd get a couple grams of cocaine and go to someplace fantastic like the Queen Mary, or Disneyland, or the Long Beach Aquarium, The San Diego Zoo, etc. We called this tradition "Merry Cokemass". We had an agreement to never do any drugs outside of these appointed 24 hours.

Anyways, we have both decided that this just isn't safe anymore.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#28

Wait I was told that when it was legalized there would be no more underground drug market. Seems things aren't as simple as they seem on the surface.

From the original article: “Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cannabis tax rates were directly linked to illegal cannabis sales. In addition to the illegal sales, increased theft is also creating problems for cannabis retailers.” I’m sure other factors are that retailers have to pay rent and payroll taxes. I have no idea wha…

Another problem with dispensaries is that banks will not allow them to use them. That means they end up being cash only, and a huge target for burglaries. There is a bill passed by a huge margin in the house in April, but the senate hasn’t taken it up yet, called the SAFE Banking Act.

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#29
post #20
post #18

Earlier quoted context omitted.

This comment feels like art. Either it’s a troll that’s not that good, or it’s a genuine comment so far off in lala land that it’s a privilege to read.

Nothing about that comment seems THAT unusual. Honestly, I'm spending more time sitting here trying to understand where you're coming from than I am with them. What elements of their comment struck you as trolling?

It is a very foreign concept to many people, I understand where they are coming from.

For example, my mom loves Whole Foods and would not prefer a CSA. There is comfort in the standard quality that McDonalds has to offer. Marketing labels and branding have become commonplace and widely celebrated amongst consumers.

To ask for these luxuries to be stripped away is preposterous to most people. “Your weed isn’t lab tested - but you could be killed!”

Re: SF suspends cannabis tax to help dispensaries compete with drug dealers

#30

Has the city considered…uh, arresting drug dealers?

Has the city considered finding a way to cut them into the big business that was created out of their traditional trade? Why help people go legal and regulated when you can throw them in prison?
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