“In order for legalization to be successful and to sort of eliminate the illegal market or at least start cutting into it, the taxes have to be at a rate that are, that are not overly burdensome because you know, you want people to just support the legal market and if the taxes are too high, it's going to be a problem. And I think that that's what we're finding.“
— Alex Traverso
Cannabis prohibition is being overturned one state at a time, and we're finding it's not a simple matter to get regulation right. Multiple agencies and institutions are involved, from the state legislature and/ or governor, to law enforcement, business licensing, revenue collection and so on.
Over-tax cannabis and you're going to see people buying products on the black market. Under-tax it and you might end up with an enormous surplus. Going on two years into cannabis legalization, how is California doing? We talked with Alex Traverso from the Bureau of Cannabis Control to find out.