California Marijuana Tax Revenue Lower Than Expected

CALIFORNIA -- The state generated $34 million in marijuana taxes in the first quarter of 2018, the Legislative Analyst’s Office announced this week. The number means the state may generate less revenue than the $175 million generated this year.

This is the first year the recreational use of marijuana became legal in California after voters approved of the measure during the 2016 election. Although voters approved of Proposition 64, individual cities still have great leeway over how to regulate marijuana businesses.

The Sacramento Bee reported the state will still "have a fairly sunny budget picture."

"Total tax revenue is running about $3.6 billion ahead of (Jerry) Brown’s projections," the Bee reported.

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