A few years back, the word Marijuana was considered to be as the million-dollar rush for the people and in people there was a rush to grow it, to buy it and to make money off it. Some people can afford it and use that money for paying taxes and for them it was going to be a good thing. In the local area, there were local dispensaries also containing marijuana. These dispensaries are legal and are regulating the taxes as well. Many states are setting their tax rates as a percentage of the price and their revenue per sale is sinking with direct proportion to the fall in the prices of the Marijuana.
Many people have questioned the authority that why legal states don’t compensate their loss by raising the taxes on the pot. As per the weedmillionairepro sources, many states tried that but somehow, they failed to pull it off. Last year, the taxes on marijuana increased by a margin of 10 to 15 percent. But there was no additional count in the gains as all the incremented amount got absorbed through the drop in the price that has occurred in past 1 year.
Anticipated Legalization Effect on Taxes
Many states have failed to understand the problem related to the misleading effect of the legalization because the dilemma was already predicted. Many experts have believed that legalizing Marijuana might whittle away the assessment of the prices by half of the total percentage. As per the weedmillionairepro, it has become very cheap and has lost its value in retail commerce. Some people have raised their concerned that if the legalization of the weed in that direction, states might lose their grip to legalize the means to grease the regulatory wheel of the taxes.
Different approaches have been taken to weed the tax and thus many people are now going by its weight and not by price.