California Has Brought in $1.03 Billion in Revenue Since Legalizing Cannabis
California’s cannabis tax revenue has surpassed $1 billion, according to the California Department of Tax and Fee Administration (CDTFA).
As of February 18, 2020, the state’s experiment with legal cannabis has yielded $1.03 billion in taxes. That includes $123.4 million from cultivation taxes and $403.1 million from state sales tax.
The figures underscore the difference between the expectations and realities of California’s legal market. When the state first legalized cannabis in 2016, revenue was expected at $1 billion per year.
The cannabis industry’s lower-than-expected revenue is the result of high taxation, an enduring black market, and local control (the majority of cities still ban commercial pot).