A Golden State Disappointment For The Marijuana ETF

“Many people are still buying weed on the illicit market, thanks in part to steep markups and high taxes in legal pot shops, along with local restrictions, according to survey data released Wednesday from marijuana delivery service Eaze,” reports Investor’s Business Daily.

Eaze data indicate that about 20% of California weed buyers are acquiring that weed via illegal means, either from dealers or unlicensed retailers. That means the state cannot collect tax revenue on those sales. Obviously, there is no benefit to legitimate marijuana investments, single stocks or ETFs, when marijuana sales are illegal.

“Digging into consumers’ complaints with the legal marijuana business overall in the six months prior to surveying, 47% cited excessively high taxes, the most frequent issue. Thirty-six percent cited a lack of electronic payment options, while 32% cited “overpriced” products,” according to IBD.

A mere 5% tax reduction on legitimate weed sales in California could propel scores of new buyers into the market, Eaze data indicate.

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