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California Pot Tax Revenue Higher, But Still Too Mellow

Nov. 14, 2018, 9:20 PM

California’s revenue from tax on legalized recreational marijuana businesses remains lower than expected despite increases in the past three quarters.

The $93.1 million collected from July 1 through Oct. 31 shows signs of improvement since recreational marijuana became legal Jan. 1, the California Department of Tax and Fee Administration said. Second-quarter tax proceeds were $80.2 million, and first-quarter proceeds were $60.9 million.

California lawmakers and the governor projected the cannabis excise tax would generate $630 million in the fiscal year from July 1, 2018, to June 30, 2019, but excise tax collections in the 2018 calendar year are less than ...