shutterstock_357883577On November 8th voters from the state of California voted en masse to legalize cannabis for adult use. Proposition 64, also known as the Adult Use of Marijuana Act by enthusiastic supporters, would legalize recreational marijuana for Californian adults aged 21 and older. Proposition 64 includes sales tax and cultivation tax protocols so that legalized recreational marijuana pulls in money for the state. There’s a clear precedent for cannabis enthusiasts to be so sanguine about the cannabis industry and its ability to rake in huge amounts of cash. Colorado’s similarly named Amendment 64 legalized weed back in 2012 to the delight of cannabis lovers in the state. Sales and cannabis related tax revenue have skyrocketed since that time. In 2015 sales in Colorado nearly topped the $1 billion mark. California’s Cannabis Industry is Expanding Even More  The overall economy is California is absolutely huge. The gross state product in the state is just under $2.5 trillion. Because of the huge tech presence and the vast agricultural resources, California’s economy is the 6th-biggest economy in the entire world. So, just how big is marijuana’s total share of the state’s agricultural economy? California’s Department of Food and Agriculture crunched the numbers and found that marijuana is a $23-billion-plus industry in the state. To put that in perspective that’s more than the next five biggest crops combined. Thanks to California’s large medical marijuana marketing, the state is perfectly set up to transition into the recreational market. Tax Revenues Should Be Enormous Cannabis insiders in California are expecting legalized cannabis to bring in significantly more tax revenue than any other state with legalized cannabis. This is due in part to California’s infrastructure and larger population. The good news for consumers is that prices of cannabis tend to decrease as both sales revenues and taxes increase for producers and the state. Economies of scale, more efficient business practices, and streamlined access to licensing all help. New studies show that marijuana could bring in $28 billion in tax revenue very soon!  

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