Why I think higher taxes on cannabis could bolster illegal sales

The new year brought new taxes to the cannabis community.

The new year brought new taxes to the cannabis community, with the California Department of Tax and Fee Administration announcing a tax hike on cannabis cultivation starting on January 1, 2022. However, from my perspective as executive chancellor of Oaksterdam University, this move could have a detrimental impact on the legal cannabis industry.

Back in 2009, the very first “tax cannabis” initiative found success in Oakland, California, where roughly 80 percent of voters voted in favor of a medical marijuana tax of 1.8 percent in gross sales. In fact, Oaksterdam University founder Richard Lee, as well as other industry players, helped lobby for the tax’s inclusion on the ballot.