Wednesday, May 29, 2019

"Black market cannabis shops thrive in L.A."

LATimes:

The state’s marijuana market got off to a sluggish start in 2018, with revenue from the first year of legal sales falling $160 million short of what was projected in former Gov. Jerry Brown’s final budget. High taxes and the refusal of many cities to allow legal cannabis sales have been blamed, while those restrictions have allowed a resilient black market to thrive.

Nowhere is that problem more glaring than in Los Angeles, where the number of illegal storefronts rivals legal dispensaries. In what should be the state’s most lucrative pot market, many legitimate business operators say they can’t compete with the hundreds of stores that are able to sell at a lower price by skirting taxes.