California Cannabis Industry Soars
News from www.CaliforniaMy420Network.com
When it comes to the state of California, not only has the legalized cannabis industry been lucrative—and perhaps one of only a very few positive things to happen to the state when considering the pandemic numbers, fires, etc.—it is also helping to open doors to new businesses. In fact, more than two dozen cities and counties approved marijuana-related ballot measures in 2020, which sets the stage for more businesses to open and hundreds of licenses to be issued in Los Angeles alone in 2021.
California is also one state that makes sure to offer all information, regulations, news, and sales figures by keeping up the California Cannabis Portal on the internet, which is a valuable resource for all things related to the state’s effort to stand behind the commercial cannabis industry.
When you look at the tax revenues the market brings in; there’s only positive news when it comes to the collections that have gone into California’s coffers, so to speak. This market continues to allow them to build up revenue and be able to take a somewhat relaxing breath, as opposed to those states that are still battling to legalize cannabis on a commercial/retail basis. Reported by the California Department of Tax and Fee Administration, the state’s collection soared by a record of $136 million year-over-year to $307 million. In addition, all three categories surged: Excise Tax up 90%; Cultivation Tax up 80%; and Sales Tax up 66%.
For the first nine months of 2020, cannabis taxes were $778 million, exceeding one billion as the year came to an end. This, suffice to say, brought in much-needed cash during some of the most trying times the U.S. has ever experienced, with COVID changing the face of the country.
For the year 2020, actual sales of legal cannabis exceeded five billion, and, at this rate, experts feel this will rise another billion when the figures for 2021 come to fruition. Looking even further into the future, market data from Marijuana Business Daily has given projections that by 2024, the California market will generate between 6.9 billion and 8.1. billion in annual sales through adult-use retailers, with another $200 to $240 million in annual medical cannabis sales.
Just recently, on January 15, 2021, the outlook for new business ventures looked even greater. While approximately a third of the state’s cities and counties have really been dedicated to the industry, experts state that many additional localities are expected to jump on board this year and will end up generating even more tax revenue to offset budget shortfalls that the pandemic continues to make. According to the UCAIC, once all counties and cities unite, and after the state adopts all regulations, legal recreation use will make up 61.5 percent of the overall market, with the sale of legal, medical marijuana being around 9 percent, and then falling over time. The decline of medical cannabis sales is expected to be seen as people begin to turn to the adult-use recreational market in order to avoid ID fees.
When summarizing California’s cannabis industry, you’re talking about a market with projected sales of $10 billion no longer being a fantasy. This is certainly one fact other states that are still striving to get laws passed will be considering. After all, every state wishes to turn their own coffers around, and California has certainly proven that legalizing cannabis is a simple, cost-effective way to do just that.
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