Pubdate: Wed, 10 Sep 2014
Source: Tribune, The (Greeley, CO)
Copyright: 2014 The Greeley Publishing Co.
Contact: http://drugsense.org/url/2T4s2YlD
Website: http://www.greeleytribune.com/
Details: http://www.mapinc.org/media/3165

COLORADO MARIJUANA INDUSTRY FACES GRAY AREA WITH BLACK MARKET

Recent surveys of where pot smokers in Colorado acquire marijuana are
proving to be a bit of a downer.

One of the more appealing aspects of legalizing private use of small
amounts of marijuana was reducing the need for an underground drug
black market, with its accompanying criminal aspect.

However, information made public recently by the Marijuana Policy
Group estimates that some 40 percent of pot smokers here still buy
through illegal means because of the high cost of legal pot.

Colorado stacked some steep taxes on legal marijuana, dreaming of a
hot new revenue source. But did we go too far? The 27 percent state
tax helped make legal marijuana quite a bit more costly than medicinal
marijuana, with its 2.9 percent tax, and considerably above street
value.

As a result, tax revenues from marijuana are running below forecasts,
and Colorado still has an active black market. Part of the supply may
be coming from individuals who are legally growing pot for their
personal use, as well as medicinal users who see an opportunity in
buying low and selling high.

It's difficult to be too critical at this point, since Colorado was
among the first two states to legalize marijuana use, and there was a
certain amount of guesswork involved. This was evident when the state
felt the need to step in quickly to make changes in the packaging of
edible marijuana to lessen dangers of accidental overdose.

Part of the high-price problem is being driven by a low supply of
legal marijuana, which has pushed prices higher. As more becomes
available, prices may drop at dispensaries. Plus, as more and more
shops open online, increased competition should push prices lower.

The state needs to continue a quest to reduce the black market
activity in marijuana sales. If legal pot prices are too high, making
illegal sales activity profitable, then it's time to lower taxes.

Marijuana users certainly will prefer buying pot at a store than
meeting someone in a parking lot for a hasty and potentially dangerous
transaction. This move should also result in bringing in more to the
state in marijuana taxes, as the percentage of smokers who buy legally
increases.

Colorado is in unchartered territory in this legal marijuana
experiment. While problems reported so far have been few, it's clear
that the state will need to continue tweaking and refining its laws
until we get it right.

- - The Tribune Editorial Board
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