Black Market Weed Is Still The Buyer’s Choice Over Legal Marijuana In Hawaii 0 Market structure and regulation have made medical cannabis far more expensive than illegal products, and consumers are choosing the cheaper option.
A new state report estimates only about 20% of the marijuana sold in Hawaii last year came from local marijuana dispensaries, and blames “market structure and regulation” for driving consumers to buy from illegal growers and sellers.
The report by the Tax Working Group of the Dual Use of Cannabis Task Force estimates the existing marijuana market in Hawaii is worth about $240 million a year, and a mature market could grow to about $354 million annually if recreational marijuana is legalized.
Considering that state tax collections are now running at about $8 billion a year, the report notes that the potential revenue for state government is “relatively modest in comparison with the overall state economy and tax collections.”
The report also warns that aggressively taxing legal marijuana providers early on may jeopardize the entire industry by encouraging consumers to continue buying cheaper product on what it describes as the “gray” market.
