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Washington: Legal Marijuana Stores Having Trouble Matching Black Market Prices

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By Steve Elliott
Hemp News

Due to the onerous nature of Washington state's regulations on the legal marijuana industry, including an overbearing tax scheme, the legal marijuana stores which have opened as the badly written I-502 is implemented are reportedly having trouble turning a profit -- even at $30 a gram.

Despite brining in more than $440,000 in sales since July, Station 420 in Union Gap is still in the red financially, according to owner Adam Markus, reports Mike Fault at the Yakima Herald-Republic.

"We have yet to make a profit here," Markus said. "And there are a lot of other people who got into this just thinking they were going to be millionaires in a year, and now they're having a hard time."

Washington state had $15.6 million in marijuana sales in November, more than double the figures from August, and pot shop owners say prices have come down by as much as half since July as supplies have increased.

But then there's the pesky fact that the prices of legal weed are still roughly double to triple those on the black market. Consumers aren't morons, and if the "guy you know down the street" is selling righteous pot for $10 a gram (a typical price both on the street and in the medical marijuana community), who wants to pay $30 a gram for the "privilege" of buying the stuff in a legal store?

Washington: Marijuana Retailers Hope Harvest Will Lower Prices, Combat Black Market

WashingtonStateMapI-502MarijuanaLeaf

By Steve Elliott
Hemp News

With licensed producers of marijuana bringing in autumn's outdoor harvest, retailers who own the recreational cannabis stores created by limited legalization measure I-502 are hoping to lower prices enough to diminish the black market -- which was one of the main justifications for the law passed by state voters two years ago.

But the most that store owners like Mary Van de Graaf, owner of Mill Creek A, one of two licensed marijuana shops in Union Gap, can hope for is making a bit of a dent. "We'll slow it down, yeah,"
Van de Graaf said, reports Ross Courtney of the Yakima Herald-Republic.

So far, even I-502 store owners like Van de Graaf have to admit that legalizing recreational marijuana has done almost nothing to combat black market street sales, where dealers don't pay taxes or check the ages of their customers.

Washington's brand of limited "legalization" apparently hasn't yet made any dent at all in illegal grows. In fact, there's an increase this year in illegal grows on tribal lands, public lands and in back yards, according to Jodie Underwood, a spokeswoman for the federal Drug Enforcement Administration's regional office in Seattle.

On Monday, law enforcement confiscated 20 pounds of processed marijuana and 43 plants in Zillah, Washington; police arrested two men the same day for stealing medical marijuana from a home in Selah.

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