People complain about the high prices for legal marijuana in California, usually blaming high taxes. Besides the fact that CA’s taxes are roughly in the middle of legal states, have you ever heard that CA has lowered taxes on anything? CA’s problem is extremely high licensing, permitting, and other start-up costs, not taxes.
I don’t see a relationship between a state’s tax rates and the prices paid:
| State | Excise tax (%) | Sales tax(%) | Price (3.5g flower) |
| AK | 25 | 0 | 60 |
| WA | 37 | 6.5 | 30 |
| OR | 0 | 17 | 30 |
| CA | 15 | 7.25 | 50 |
| NV | 10 | 6.85 | 47 |
| CO | 15 | 2.9 | 40 |
| MI | 10 | 6 | 55 |
| IL | 17 | 6.5 | 56 |
| MA | 10.75 | 6.25 | 52 |
| Maine | 16 | 10 | No market |
| Vermont | 0 | 0 | No market |
| AZ | 6.6 | 0 | 40 |
| OK | 7 | 9 | 50 |
Almost all states allow localities to add 2-3% in sales tax to marijuana, and most do.
New markets always start out high.
AZ and OK are large medical only markets.
Prices are my estimates of the “typical” price for medium and better quality flower. Some states permit discounts and specials (“wisdom”, veterans, new customers, etc).
High rent places (ie San Francisco, Las Vegas) can show much higher prices.