Green Means Go: 5 Things That Must Happen Before Massachusetts Recreational Weed Sales Begin

#4-Fair prices and taxes must be established
This one sort of piggy-backs off of my last point. There must be an accurate barometer for street weed prices in Massachusetts, and this information must be taken into account when the Cannabis Control Commission establishes regulations in March. Business owners must have the financial ability and legislative flexibility to offer product at fair market prices, while still allowing for meaningful tax dollars to be accumulated. The alternative is money hungry businesses driving consumers back into the hands of the illegal market that has controlled cannabis in the state for decades.

Massachusetts Governor Charlie Baker proposed a 20% sales tax on recreational cannabis in July of 2017. This rate would be among the lowest in the United States, as Oregon pays a 20% sales tax, Colorado pays 27.9%, and Washington pays 37%.

While a lower sales tax could bring in more consumers from out of state, could the price of cannabis in Massachusetts increase as a result? Would companies charge more purely because people would be willing to pay more given the fact that they aren’t paying an extra 15-20% worth of taxes in another state? Because if so, it will contribute to a growing illegal market.

I believe the majority of cannabis consumers would pay comparable prices and taxes for cannabis (if not slightly higher) if it meant there tax dollars were being used effectively throughout their communities. But if it becomes evident that the legal recreational businesses are raising prices purely for personal profit, and the state government is using more dollars than necessary to keep the program running, these consumers will continue seeing Mr. WeedMan420 down the street instead. Additionally, cannabis growers must have adequate incentive to produce product for the legal recreational market. If not, growers will sell their product elsewhere and business owners will have to pay more to outsource their cultivation. Essentially, we need a smooth relationship between consumers, growers, and business owners; and this means setting a fair price for all sides.