Report: Cali Pot Prices Could Drop to $38 an Ounce With Prop. 19 Passage
July 8, 2010
(ChattahBox)– Californians have another reason to vote for an upcoming ballot initiative legalizing marijuana. The price of weed could go down dramatically, by as much as 80 percent, according to a new report, hearkening back to the 70s, when pot was cheap and the Boone’s Farm Apple wine flowed like honey.
The 80-page report, entitled “Altered State?” prepared by Rand’s Drug Policy Research Center, predicts usage of marijuana would increase, as prices drop and small amounts become decriminalized.
Local communities would still greatly benefit from increased tax revenue, even as pot costs go down, because of a proposed $50 per ounce state tax. Still, with an estimated drop to $38.00 an ounce, plus $50, the final cost of $88.00 is a far cry from current price points of $300 and $450 per ounce. So it’s a win, win.
Rand’s report pegged state revenues from legal marijuana sales, from $650 million to $1.49 billion; an amount the economically distressed state of California would welcome.
“California voters and legislators face considerable uncertainty because it is very difficult to estimate how much more marijuana will be consumed in the state or how the change will affect tax revenues, criminal-justice costs and healthcare costs,” concludes Rand’s assessment.