From the original article: “Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cann

From the original article: “Mandelman’s office pointed to a Dec. 19 report from the California Legislative Analyst’s Office that found that increased state cannabis tax rates were directly linked to illegal cannabis sales. In addition to the illegal sales, increased theft is also creating problems for cannabis retailers.” I’m sure other factors are that retailers have to pay rent and payroll taxes. I have no idea what the price differential is, but I could imagine it being quite significant. Making things illegal doesn’t mean it goes away. Most often, it just makes it more expensive because people are exposed to more risk from selling it. But if you don’t enforce your laws and there is no risk, then of course the legal version of it can’t compete. If the city didn’t enforce any of its awful zoning laws, housing would be super cheap.