Marijuana Price / Tax Tables

Oakland, California
60% Markup
The Oakland Business Tax Revenue Division gives figures of $291 per ounce retail and $28 million in revenue on 6,000
pounds of medical marijuana at $3,000 per pound wholesale. This works out to a 64% markup. The Rand Study's retail
price floor of $38 per ounce (before taxes) comes in at a wholesale price of $375 per pound using this 64% markup.
A 60% markup was used for these tables because it gives round numbers per ounce while conforming to the data points
noted above, except the wholesale price for a $38 ounce becomes $380 rather than $375.
At 100% markup the Rand Study's price floor floor of $38/ounce works out to $300/pound wholesale, and $300/ounce retail
works out to $2,500/pound wholesale, which some believe are more realistic figures. A separate set of tables using 100%
markup can be found at http://www.palmspringsbum.org/examiner/marijuana-tax_oakland-markup-100.pdf.

Table 1

Before marijuana tax of 1.8%
Production of 4,285 pounds is based on Oakland's statement that production increased 40% in 2009 to 6,000 pounds

Table 2

Current year with 1.8% medical marijuana tax
Marijuana tax of 1.8% was passed 1 year ago, in July of 2009.

Table 3

Impact of increased licensing
Oakland passed an ordinance which authorized 4 industrial cultivation permits at $211,000 each with an application fee of
$5,000. This ordinance also increased the number of permitted dispensaries from 4 to 6, and the license fee per
dispensary from $30,000 to $60,000.

Table 4

Impact of medical marijuana tax increase
The local tax ordinance on the ballot in Oakland will add a production tax of up to 5% and increase the tax limit on medical
sales from 1.8% to 5%.

Table 5

Impact of recreational marijuana tax
If both the local tax and Prop. 19 pass in November, non-medical marijuana retail purchases in Oakland will be taxed up to
10% tax, in addition to a 5% wholesale/cultivation tax, in addition to 9.75% sales tax.

Table 6

Impact of increased production with no new tax
Jeff Wilcox told The San Jose Mercury News on August 1st 2010 that his facility alone could produce 21,000 pounds which
will sell for $60 million. That works out to over $2,800 per pound, so it appears he isn't anticipating any decline in price.

Table 7

Impact of increased production and medical tax
Production of 21,000 pounds with 5% tax on medical retail and wholesale.

Table 8

Impact of production increase and recreational tax
Production of 21,000 pounds with up to 10% tax on non-medical retail and up to 5% tax on wholesale. Estimates are that
there are probably 6 times as many recreational marijuana smokers in California as medical patients.

Marijuana Price / Tax Tables

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 1 of 8
license
applications
cultivators
dispensaries

total

cultivation tax
Wholesale

4

30,000

120,000
$120,000

Retail

production
sales tax
9.75%

marijuana tax

pounds
4,285

ounces
68,560

total retail
9.75%

markup
60%

Previous year with no medical marijuana tax
Wholesale
per pound

per ounce

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value

Retail
tax

$21,425,000
19,282,500
17,140,000
14,997,500
13,926,250
12,855,000
11,783,750
10,712,500
9,641,250
8,570,000
7,498,750
6,427,500
5,356,250
4,285,000
3,213,750
2,142,500
1,628,300

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

Total

tax per oz.

$48.75
43.88
39.00
34.13
31.69
29.25
26.81
24.38
21.94
19.50
17.06
14.63
12.19
9.75
7.31
4.88
3.71

value
$34,280,000
30,852,000
27,424,000
23,996,000
22,282,000
20,568,000
18,854,000
17,140,000
15,426,000
13,712,000
11,998,000
10,284,000
8,570,000
6,856,000
5,142,000
3,428,000
2,605,280

tax

Per Ounce

taxes & fees

$3,342,300
3,008,070
2,673,840
2,339,610
2,172,495
2,005,380
1,838,265
1,671,150
1,504,035
1,336,920
1,169,805
1,002,690
835,575
668,460
501,345
334,230
254,015

$3,462,300
3,128,070
2,793,840
2,459,610
2,292,495
2,125,380
1,958,265
1,791,150
1,624,035
1,456,920
1,289,805
1,122,690
955,575
788,460
621,345
454,230
374,015

cost

taxes & fees

$548.75
493.88
439.00
384.13
356.69
329.25
301.81
274.38
246.94
219.50
192.06
164.63
137.19
109.75
82.31
54.88
41.71

% of cost

$50.50
45.63
40.75
35.88
33.44
31.00
28.56
26.13
23.69
21.25
18.81
16.38
13.94
11.50
9.06
6.63
5.46

10.10%
10.14%
10.19%
10.25%
10.29%
10.33%
10.39%
10.45%
10.53%
10.63%
10.75%
10.92%
11.15%
11.50%
12.08%
13.26%
14.37%

wholesale

local total

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

retail

Gross Tax & Fees

wholesale

$1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75
1.75

total

$50.50
45.63
40.75
33.44
31.00
31.00
28.57
26.13
23.69
21.25
18.82
16.38
13.94
11.50
9.07
6.63
5.46

state sales
$2,828,100
2,545,633
2,262,480
1,838,094
1,696,860
1,696,860
1,555,626
1,414,393
1,272,474
1,131,240
990,006
848,773
706,854
565,620
424,386
283,153
215,278

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

local sales
$514,200
462,780
411,360
334,573
308,520
308,520
283,153
257,100
231,733
205,680
180,313
154,260
128,893
102,840
77,473
51,420
39,079

license fees included:

retail
$119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980
119,980

$634,180
582,760
531,340
454,553
428,500
428,500
403,133
377,080
351,713
325,660
300,293
274,240
248,873
222,820
197,453
171,400
159,059

120,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 2 of 8
license
applications
cultivators
dispensaries

total

cultivation tax
Wholesale

4

30,000

120,000
$120,000

Retail

production
sales tax
9.75%

marijuana tax
1.80%

pounds
6,000

ounces
96,000

total retail
11.55%

markup
60%

Current year with 1.8% medical marijuana tax
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value

Retail
tax

$30,000,000
27,000,000
24,000,000
21,000,000
19,500,000
18,000,000
16,500,000
15,000,000
13,500,000
12,000,000
10,500,000
9,000,000
7,500,000
6,000,000
4,500,000
3,000,000
2,280,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

tax per oz.

$57.75
51.98
46.20
40.43
37.54
34.65
31.76
28.88
25.99
23.10
20.21
17.33
14.44
11.55
8.66
5.78
4.39

Total
value

$48,000,000
43,200,000
38,400,000
33,600,000
31,200,000
28,800,000
26,400,000
24,000,000
21,600,000
19,200,000
16,800,000
14,400,000
12,000,000
9,600,000
7,200,000
4,800,000
3,648,000

tax

Per Ounce

taxes & fees

$5,544,000
4,989,600
4,435,200
3,880,800
3,603,600
3,326,400
3,049,200
2,772,000
2,494,800
2,217,600
1,940,400
1,663,200
1,386,000
1,108,800
831,600
554,400
421,344

$5,664,000
5,109,600
4,555,200
4,000,800
3,723,600
3,446,400
3,169,200
2,892,000
2,614,800
2,337,600
2,060,400
1,783,200
1,506,000
1,228,800
951,600
674,400
541,344

cost

taxes & fees

$557.75
501.98
446.20
390.43
362.54
334.65
306.76
278.88
250.99
223.10
195.21
167.33
139.44
111.55
83.66
55.78
42.39

$59.00
53.23
47.45
41.68
38.79
35.90
33.01
30.13
27.24
24.35
21.46
18.58
15.69
12.80
9.91
7.03
5.64

% of cost
11.80%
11.83%
11.86%
11.91%
11.94%
11.97%
12.00%
12.05%
12.11%
12.18%
12.26%
12.39%
12.55%
12.80%
13.21%
14.06%
14.84%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

retail

wholesale

$10.25
9.35
8.45
7.10
6.65
6.65
6.20
5.75
5.30
4.85
4.40
3.95
3.50
3.05
2.60
2.15
1.93

Gross Tax & Fees
total

$59.00
53.23
47.45
38.79
35.90
35.90
33.02
30.13
27.24
24.35
21.47
18.58
15.69
12.80
9.92
7.03
5.64

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

state sales
$3,960,000
3,564,480
3,168,000
2,573,760
2,376,000
2,376,000
2,178,240
1,980,480
1,781,760
1,584,000
1,386,240
1,188,480
989,760
792,000
594,240
396,480
301,440

local sales
$720,000
648,000
576,000
468,480
432,000
432,000
396,480
360,000
324,480
288,000
252,480
216,000
180,480
144,000
108,480
72,000
54,720

license fees included:

retail
$984,000
897,600
811,200
681,600
638,400
638,400
595,200
552,000
508,800
465,600
422,400
379,200
336,000
292,800
249,600
206,400
185,280

wholesale

local total
$1,704,000
1,545,600
1,387,200
1,150,080
1,070,400
1,070,400
991,680
912,000
833,280
753,600
674,880
595,200
516,480
436,800
358,080
278,400
240,000

120,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 3 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

cultivation tax
Wholesale

Retail

production
sales tax
9.75%

marijuana tax
1.80%

pounds
6,000

ounces
96,000

total retail
11.55%

markup
60%

Impact of increased licensing
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value

Retail
tax

$30,000,000
27,000,000
24,000,000
21,000,000
19,500,000
18,000,000
16,500,000
15,000,000
13,500,000
12,000,000
10,500,000
9,000,000
7,500,000
6,000,000
4,500,000
3,000,000
2,280,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

tax per oz.

$57.75
51.98
46.20
40.43
37.54
34.65
31.76
28.88
25.99
23.10
20.21
17.33
14.44
11.55
8.66
5.78
4.39

Total
value

$48,000,000
43,200,000
38,400,000
33,600,000
31,200,000
28,800,000
26,400,000
24,000,000
21,600,000
19,200,000
16,800,000
14,400,000
12,000,000
9,600,000
7,200,000
4,800,000
3,648,000

tax

Per Ounce

taxes & fees

$5,544,000
4,989,600
4,435,200
3,880,800
3,603,600
3,326,400
3,049,200
2,772,000
2,494,800
2,217,600
1,940,400
1,663,200
1,386,000
1,108,800
831,600
554,400
421,344

$6,768,000
6,213,600
5,659,200
5,104,800
4,827,600
4,550,400
4,273,200
3,996,000
3,718,800
3,441,600
3,164,400
2,887,200
2,610,000
2,332,800
2,055,600
1,778,400
1,645,344

cost

taxes & fees

$557.75
501.98
446.20
390.43
362.54
334.65
306.76
278.88
250.99
223.10
195.21
167.33
139.44
111.55
83.66
55.78
42.39

$70.50
64.73
58.95
53.18
50.29
47.40
44.51
41.63
38.74
35.85
32.96
30.08
27.19
24.30
21.41
18.53
17.14

% of cost
14.10%
14.38%
14.74%
15.19%
15.47%
15.80%
16.19%
16.65%
17.22%
17.93%
18.83%
20.05%
21.75%
24.30%
28.55%
37.06%
45.11%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

retail

$12.75
11.85
10.95
9.60
9.15
9.15
8.70
8.25
7.80
7.35
6.90
6.45
6.00
5.55
5.10
4.65
4.43

wholesale
$9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00
9.00

Gross Tax & Fees
total

$70.50
64.73
58.95
50.29
47.40
47.40
44.52
41.63
38.74
35.85
32.97
30.08
27.19
24.30
21.42
18.53
17.14

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

state sales
$3,960,000
3,564,480
3,168,000
2,573,760
2,376,000
2,376,000
2,178,240
1,980,480
1,781,760
1,584,000
1,386,240
1,188,480
989,760
792,000
594,240
396,480
301,440

local sales
$720,000
648,000
576,000
468,480
432,000
432,000
396,480
360,000
324,480
288,000
252,480
216,000
180,480
144,000
108,480
72,000
54,720

license fees included:

retail

wholesale

$1,224,000
1,137,600
1,051,200
921,600
878,400
878,400
835,200
792,000
748,800
705,600
662,400
619,200
576,000
532,800
489,600
446,400
425,280

$864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000
864,000

360,000

844,000

local total
$2,808,000
2,649,600
2,491,200
2,254,080
2,174,400
2,174,400
2,095,680
2,016,000
1,937,280
1,857,600
1,778,880
1,699,200
1,620,480
1,540,800
1,462,080
1,382,400
1,344,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 4 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

Wholesale

Retail

cultivation tax
5.00%
sales tax
9.75%

production
marijuana tax
5.00%

pounds
6,000

ounces
96,000

total retail
14.75%

markup
60%

Impact of medical marijuana tax increase
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value
$30,000,000
27,000,000
24,000,000
21,000,000
19,500,000
18,000,000
16,500,000
15,000,000
13,500,000
12,000,000
10,500,000
9,000,000
7,500,000
6,000,000
4,500,000
3,000,000
2,280,000

Retail
tax

per ounce

$1,500,000
1,350,000
1,200,000
1,050,000
975,000
900,000
825,000
750,000
675,000
600,000
525,000
450,000
375,000
300,000
225,000
150,000
114,000

500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

tax per oz.

$73.75
66.38
59.00
51.63
47.94
44.25
40.56
36.88
33.19
29.50
25.81
22.13
18.44
14.75
11.06
7.38
5.61

Total
value

$48,000,000
43,200,000
38,400,000
33,600,000
31,200,000
28,800,000
26,400,000
24,000,000
21,600,000
19,200,000
16,800,000
14,400,000
12,000,000
9,600,000
7,200,000
4,800,000
3,648,000

tax

Per Ounce

taxes & fees

$7,080,000
6,372,000
5,664,000
4,956,000
4,602,000
4,248,000
3,894,000
3,540,000
3,186,000
2,832,000
2,478,000
2,124,000
1,770,000
1,416,000
1,062,000
708,000
538,080

$9,804,000
8,946,000
8,088,000
7,230,000
6,801,000
6,372,000
5,943,000
5,514,000
5,085,000
4,656,000
4,227,000
3,798,000
3,369,000
2,940,000
2,511,000
2,082,000
1,876,080

cost

taxes & fees

$573.75
516.38
459.00
401.63
372.94
344.25
315.56
286.88
258.19
229.50
200.81
172.13
143.44
114.75
86.06
57.38
43.61

$102.13
93.19
84.25
75.31
70.84
66.38
61.91
57.44
52.97
48.50
44.03
39.56
35.09
30.63
26.16
21.69
19.54

% of cost
20.43%
20.71%
21.06%
21.52%
21.80%
22.13%
22.51%
22.98%
23.54%
24.25%
25.16%
26.37%
28.07%
30.63%
34.88%
43.38%
51.42%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

Gross Tax & Fees

retail

wholesale

total

$28.75
26.25
23.75
20.00
18.75
18.75
17.50
16.25
15.00
13.75
12.50
11.25
10.00
8.75
7.50
6.25
5.65

$24.63
23.06
21.50
19.94
19.16
18.38
17.59
16.81
16.03
15.25
14.47
13.69
12.91
12.13
11.34
10.56
10.19

$102.13
93.19
84.25
71.63
67.16
66.38
61.91
57.44
52.97
48.50
44.04
39.57
35.10
30.63
26.16
21.69
19.55

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

state sales
$3,960,000
3,564,480
3,168,000
2,573,760
2,376,000
2,376,000
2,178,240
1,980,480
1,781,760
1,584,000
1,386,240
1,188,480
989,760
792,000
594,240
396,480
301,440

local sales
$720,000
648,000
576,000
468,480
432,000
432,000
396,480
360,000
324,480
288,000
252,480
216,000
180,480
144,000
108,480
72,000
54,720

license fees included:

wholesale

local total

$2,760,000
2,520,000
2,280,000
1,920,000
1,800,000
1,800,000
1,680,000
1,560,000
1,440,000
1,320,000
1,200,000
1,080,000
960,000
840,000
720,000
600,000
542,400

retail

$2,364,480
2,213,760
2,064,000
1,914,240
1,839,360
1,764,480
1,688,640
1,613,760
1,538,880
1,464,000
1,389,120
1,314,240
1,239,360
1,164,480
1,088,640
1,013,760
978,240

$5,844,480
5,381,760
4,920,000
4,302,720
4,071,360
3,996,480
3,765,120
3,533,760
3,303,360
3,072,000
2,841,600
2,610,240
2,379,840
2,148,480
1,917,120
1,685,760
1,575,360

360,000

844,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 5 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

Wholesale

Retail

cultivation tax
5.00%
sales tax
9.75%

production
marijuana tax
10.00%

pounds
6,000

ounces
96,000

total retail
19.75%

markup
60%

Impact of recreational marijuana tax
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value
$30,000,000
27,000,000
24,000,000
21,000,000
19,500,000
18,000,000
16,500,000
15,000,000
13,500,000
12,000,000
10,500,000
9,000,000
7,500,000
6,000,000
4,500,000
3,000,000
2,280,000

Retail
tax
$1,500,000
1,350,000
1,200,000
1,050,000
975,000
900,000
825,000
750,000
675,000
600,000
525,000
450,000
375,000
300,000
225,000
150,000
114,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

tax per oz.

$98.75
88.88
79.00
69.13
64.19
59.25
54.31
49.38
44.44
39.50
34.56
29.63
24.69
19.75
14.81
9.88
7.51

Total
value

$48,000,000
43,200,000
38,400,000
33,600,000
31,200,000
28,800,000
26,400,000
24,000,000
21,600,000
19,200,000
16,800,000
14,400,000
12,000,000
9,600,000
7,200,000
4,800,000
3,648,000

tax

Per Ounce

taxes & fees

$9,480,000
8,532,000
7,584,000
6,636,000
6,162,000
5,688,000
5,214,000
4,740,000
4,266,000
3,792,000
3,318,000
2,844,000
2,370,000
1,896,000
1,422,000
948,000
720,480

$12,204,000
11,106,000
10,008,000
8,910,000
8,361,000
7,812,000
7,263,000
6,714,000
6,165,000
5,616,000
5,067,000
4,518,000
3,969,000
3,420,000
2,871,000
2,322,000
2,058,480

cost

taxes & fees

$598.75
538.88
479.00
419.13
389.19
359.25
329.31
299.38
269.44
239.50
209.56
179.63
149.69
119.75
89.81
59.88
45.51

$127.13
115.69
104.25
92.81
87.09
81.38
75.66
69.94
64.22
58.50
52.78
47.06
41.34
35.63
29.91
24.19
21.44

% of cost
25.43%
25.71%
26.06%
26.52%
26.80%
27.13%
27.51%
27.98%
28.54%
29.25%
30.16%
31.37%
33.07%
35.63%
39.88%
48.38%
56.42%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

Gross Tax & Fees

retail

wholesale

total

$53.75
48.75
43.75
36.25
33.75
33.75
31.25
28.75
26.25
23.75
21.25
18.75
16.25
13.75
11.25
8.75
7.55

$24.63
23.06
21.50
19.94
19.16
18.38
17.59
16.81
16.03
15.25
14.47
13.69
12.91
12.13
11.34
10.56
10.19

$127.13
115.69
104.25
87.88
82.16
81.38
75.66
69.94
64.22
58.50
52.79
47.07
41.35
35.63
29.91
24.19
21.45

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

state sales
$3,960,000
3,564,480
3,168,000
2,573,760
2,376,000
2,376,000
2,178,240
1,980,480
1,781,760
1,584,000
1,386,240
1,188,480
989,760
792,000
594,240
396,480
301,440

local sales
$720,000
648,000
576,000
468,480
432,000
432,000
396,480
360,000
324,480
288,000
252,480
216,000
180,480
144,000
108,480
72,000
54,720

license fees included:

wholesale

local total

$5,160,000
4,680,000
4,200,000
3,480,000
3,240,000
3,240,000
3,000,000
2,760,000
2,520,000
2,280,000
2,040,000
1,800,000
1,560,000
1,320,000
1,080,000
840,000
724,800

retail

$2,364,480
2,213,760
2,064,000
1,914,240
1,839,360
1,764,480
1,688,640
1,613,760
1,538,880
1,464,000
1,389,120
1,314,240
1,239,360
1,164,480
1,088,640
1,013,760
978,240

$8,244,480
7,541,760
6,840,000
5,862,720
5,511,360
5,436,480
5,085,120
4,733,760
4,383,360
4,032,000
3,681,600
3,330,240
2,979,840
2,628,480
2,277,120
1,925,760
1,757,760

360,000

844,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 6 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

cultivation tax
Wholesale

Retail

production
sales tax
9.75%

marijuana tax
1.80%

pounds
21,000

ounces
336,000

total retail
11.55%

markup
60%

Impact of increased production with no new tax
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value

Retail
tax

$105,000,000
94,500,000
84,000,000
73,500,000
68,250,000
63,000,000
57,750,000
52,500,000
47,250,000
42,000,000
36,750,000
31,500,000
26,250,000
21,000,000
15,750,000
10,500,000
7,980,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

Total

Per Ounce

tax per oz.

value

tax

taxes & fees

$57.75
51.98
46.20
40.43
37.54
34.65
31.76
28.88
25.99
23.10
20.21
17.33
14.44
11.55
8.66
5.78
4.39

$168,000,000
151,200,000
134,400,000
117,600,000
109,200,000
100,800,000
92,400,000
84,000,000
75,600,000
67,200,000
58,800,000
50,400,000
42,000,000
33,600,000
25,200,000
16,800,000
12,768,000

$19,404,000
17,463,600
15,523,200
13,582,800
12,612,600
11,642,400
10,672,200
9,702,000
8,731,800
7,761,600
6,791,400
5,821,200
4,851,000
3,880,800
2,910,600
1,940,400
1,474,704

$20,628,000
18,687,600
16,747,200
14,806,800
13,836,600
12,866,400
11,896,200
10,926,000
9,955,800
8,985,600
8,015,400
7,045,200
6,075,000
5,104,800
4,134,600
3,164,400
2,698,704

cost

taxes & fees

$557.75
501.98
446.20
390.43
362.54
334.65
306.76
278.88
250.99
223.10
195.21
167.33
139.44
111.55
83.66
55.78
42.39

$61.39
55.62
49.84
44.07
41.18
38.29
35.41
32.52
29.63
26.74
23.86
20.97
18.08
15.19
12.31
9.42
8.03

% of cost
12.28%
12.36%
12.46%
12.59%
12.67%
12.76%
12.88%
13.01%
13.17%
13.37%
13.63%
13.98%
14.46%
15.19%
16.41%
18.84%
21.13%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

retail

$10.07
9.17
8.27
6.92
6.47
6.47
6.02
5.57
5.12
4.67
4.22
3.77
3.32
2.87
2.42
1.97
1.76

wholesale
$2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57
2.57

Gross Tax & Fees
total

state sales

local sales

$61.39
55.62
49.84
41.18
38.29
38.29
35.41
32.52
29.63
26.74
23.86
20.97
18.08
15.19
12.31
9.42
8.04

$13,860,000
12,475,680
11,088,000
9,008,160
8,316,000
8,316,000
7,623,840
6,931,680
6,236,160
5,544,000
4,851,840
4,159,680
3,464,160
2,772,000
2,079,840
1,387,680
1,055,040

$2,520,000
2,268,000
2,016,000
1,639,680
1,512,000
1,512,000
1,387,680
1,260,000
1,135,680
1,008,000
883,680
756,000
631,680
504,000
379,680
252,000
191,520

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

license fees included:

retail

wholesale

$3,383,520
3,081,120
2,778,720
2,325,120
2,173,920
2,173,920
2,022,720
1,871,520
1,720,320
1,569,120
1,417,920
1,266,720
1,115,520
964,320
813,120
661,920
591,360

$863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520
863,520

360,000

844,000

local total
$6,767,040
6,212,640
5,658,240
4,828,320
4,549,440
4,549,440
4,273,920
3,995,040
3,719,520
3,440,640
3,165,120
2,886,240
2,610,720
2,331,840
2,056,320
1,777,440
1,646,400

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 7 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

Wholesale

Retail

cultivation tax
5.00%
sales tax
9.75%

production
marijuana tax
5.00%

pounds
21,000

ounces
336,000

total retail
14.75%

markup
60%

Impact of increased production and medical tax
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value
$105,000,000
94,500,000
84,000,000
73,500,000
68,250,000
63,000,000
57,750,000
52,500,000
47,250,000
42,000,000
36,750,000
31,500,000
26,250,000
21,000,000
15,750,000
10,500,000
7,980,000

Retail
tax
$5,250,000
4,725,000
4,200,000
3,675,000
3,412,500
3,150,000
2,887,500
2,625,000
2,362,500
2,100,000
1,837,500
1,575,000
1,312,500
1,050,000
787,500
525,000
399,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

Total

Per Ounce

tax per oz.

value

tax

taxes & fees

$73.75
66.38
59.00
51.63
47.94
44.25
40.56
36.88
33.19
29.50
25.81
22.13
18.44
14.75
11.06
7.38
5.61

$168,000,000
151,200,000
134,400,000
117,600,000
109,200,000
100,800,000
92,400,000
84,000,000
75,600,000
67,200,000
58,800,000
50,400,000
42,000,000
33,600,000
25,200,000
16,800,000
12,768,000

$24,780,000
22,302,000
19,824,000
17,346,000
16,107,000
14,868,000
13,629,000
12,390,000
11,151,000
9,912,000
8,673,000
7,434,000
6,195,000
4,956,000
3,717,000
2,478,000
1,883,280

$31,254,000
28,251,000
25,248,000
22,245,000
20,743,500
19,242,000
17,740,500
16,239,000
14,737,500
13,236,000
11,734,500
10,233,000
8,731,500
7,230,000
5,728,500
4,227,000
3,506,280

cost

taxes & fees

$573.75
516.38
459.00
401.63
372.94
344.25
315.56
286.88
258.19
229.50
200.81
172.13
143.44
114.75
86.06
57.38
43.61

$93.02
84.08
75.14
66.21
61.74
57.27
52.80
48.33
43.86
39.39
34.92
30.46
25.99
21.52
17.05
12.58
10.44

% of cost
18.60%
18.68%
18.79%
18.92%
19.00%
19.09%
19.20%
19.33%
19.49%
19.70%
19.95%
20.31%
20.79%
21.52%
22.73%
25.16%
27.47%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

Gross Tax & Fees

retail

wholesale

total

state sales

local sales

$26.07
23.57
21.07
17.32
16.07
16.07
14.82
13.57
12.32
11.07
9.82
8.57
7.32
6.07
4.82
3.57
2.97

$18.20
16.63
15.07
13.51
12.73
11.95
11.17
10.38
9.60
8.82
8.04
7.26
6.48
5.70
4.92
4.13
3.76

$93.02
84.08
75.14
62.52
58.05
57.27
52.81
48.33
43.86
39.39
34.93
30.46
25.99
21.52
17.06
12.58
10.44

$13,860,000
12,475,680
11,088,000
9,008,160
8,316,000
8,316,000
7,623,840
6,931,680
6,236,160
5,544,000
4,851,840
4,159,680
3,464,160
2,772,000
2,079,840
1,387,680
1,055,040

$2,520,000
2,268,000
2,016,000
1,639,680
1,512,000
1,512,000
1,387,680
1,260,000
1,135,680
1,008,000
883,680
756,000
631,680
504,000
379,680
252,000
191,520

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

license fees included:

wholesale

local total

$8,759,520
7,919,520
7,079,520
5,819,520
5,399,520
5,399,520
4,979,520
4,559,520
4,139,520
3,719,520
3,299,520
2,879,520
2,459,520
2,039,520
1,619,520
1,199,520
997,920

retail

$6,115,200
5,587,680
5,063,520
4,539,360
4,277,280
4,015,200
3,753,120
3,487,680
3,225,600
2,963,520
2,701,440
2,439,360
2,177,280
1,915,200
1,653,120
1,387,680
1,263,360

$17,394,720
15,775,200
14,159,040
11,998,560
11,188,800
10,926,720
10,120,320
9,307,200
8,500,800
7,691,040
6,884,640
6,074,880
5,268,480
4,458,720
3,652,320
2,839,200
2,452,800

360,000

844,000

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Oakland

Table 8 of 8
applications
cultivators
dispensaries

license
$5,000
211,000
60,000

4
4
6

total
$20,000
844,000
360,000
$1,224,000

Wholesale

Retail

Impact of production increase and recreational tax
Wholesale
per pound
$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

per ounce
$312.50
281.25
250.00
218.75
203.13
187.50
171.88
156.25
140.63
125.00
109.38
93.75
78.13
62.50
46.88
31.25
23.75

value
$105,000,000
94,500,000
84,000,000
73,500,000
68,250,000
63,000,000
57,750,000
52,500,000
47,250,000
42,000,000
36,750,000
31,500,000
26,250,000
21,000,000
15,750,000
10,500,000
7,980,000

cultivation tax
5.00%
sales tax
9.75%

Retail
tax
$5,250,000
4,725,000
4,200,000
3,675,000
3,412,500
3,150,000
2,887,500
2,625,000
2,362,500
2,100,000
1,837,500
1,575,000
1,312,500
1,050,000
787,500
525,000
399,000

per ounce
500
450
400
350
325
300
275
250
225
200
175
150
125
100
75
50
38

production
marijuana tax
10.00%

pounds
21,000

ounces
336,000

total retail
19.75%

markup
60%

Total

Per Ounce

tax per oz.

value

tax

taxes & fees

$98.75
88.88
79.00
69.13
64.19
59.25
54.31
49.38
44.44
39.50
34.56
29.63
24.69
19.75
14.81
9.88
7.51

$168,000,000
151,200,000
134,400,000
117,600,000
109,200,000
100,800,000
92,400,000
84,000,000
75,600,000
67,200,000
58,800,000
50,400,000
42,000,000
33,600,000
25,200,000
16,800,000
12,768,000

$33,180,000
29,862,000
26,544,000
23,226,000
21,567,000
19,908,000
18,249,000
16,590,000
14,931,000
13,272,000
11,613,000
9,954,000
8,295,000
6,636,000
4,977,000
3,318,000
2,521,680

$39,654,000
35,811,000
31,968,000
28,125,000
26,203,500
24,282,000
22,360,500
20,439,000
18,517,500
16,596,000
14,674,500
12,753,000
10,831,500
8,910,000
6,988,500
5,067,000
4,144,680

cost

taxes & fees

$598.75
538.88
479.00
419.13
389.19
359.25
329.31
299.38
269.44
239.50
209.56
179.63
149.69
119.75
89.81
59.88
45.51

$118.02
106.58
95.14
83.71
77.99
72.27
66.55
60.83
55.11
49.39
43.67
37.96
32.24
26.52
20.80
15.08
12.34

% of cost
23.60%
23.68%
23.79%
23.92%
24.00%
24.09%
24.20%
24.33%
24.49%
24.70%
24.95%
25.31%
25.79%
26.52%
27.73%
30.16%
32.47%

Total taxes & fees = total licenses & fees + wholesale tax + retail tax. Per ounce taxes & fees = total taxes & fees / production ounces

Wholesale

Retail

Per Ounce Tax & Fees

per pound

per ounce

state sales

$5,000
4,500
4,000
3,500
3,250
3,000
2,750
2,500
2,250
2,000
1,750
1,500
1,250
1,000
750
500
380

$500
450
400
325
300
300
275
250
225
200
175
150
125
100
75
50
38

$41.25
37.13
33.00
26.81
24.75
24.75
22.69
20.63
18.56
16.50
14.44
12.38
10.31
8.25
6.19
4.13
3.14

local sales
$7.50
6.75
6.00
4.88
4.50
4.50
4.13
3.75
3.38
3.00
2.63
2.25
1.88
1.50
1.13
0.75
0.57

Gross Tax & Fees

retail

wholesale

total

state sales

local sales

retail

wholesale

local total

$51.07
46.07
41.07
33.57
31.07
31.07
28.57
26.07
23.57
21.07
18.57
16.07
13.57
11.07
8.57
6.07
4.87

$18.20
16.63
15.07
13.51
12.73
11.95
11.17
10.38
9.60
8.82
8.04
7.26
6.48
5.70
4.92
4.13
3.76

$118.02
106.58
95.14
78.77
73.05
72.27
66.56
60.83
55.11
49.39
43.68
37.96
32.24
26.52
20.81
15.08
12.34

$13,860,000
12,475,680
11,088,000
9,008,160
8,316,000
8,316,000
7,623,840
6,931,680
6,236,160
5,544,000
4,851,840
4,159,680
3,464,160
2,772,000
2,079,840
1,387,680
1,055,040

$2,520,000
2,268,000
2,016,000
1,639,680
1,512,000
1,512,000
1,387,680
1,260,000
1,135,680
1,008,000
883,680
756,000
631,680
504,000
379,680
252,000
191,520

$17,159,520
15,479,520
13,799,520
11,279,520
10,439,520
10,439,520
9,599,520
8,759,520
7,919,520
7,079,520
6,239,520
5,399,520
4,559,520
3,719,520
2,879,520
2,039,520
1,636,320

$6,115,200
5,587,680
5,063,520
4,539,360
4,277,280
4,015,200
3,753,120
3,487,680
3,225,600
2,963,520
2,701,440
2,439,360
2,177,280
1,915,200
1,653,120
1,387,680
1,263,360

$25,794,720
23,335,200
20,879,040
17,458,560
16,228,800
15,966,720
14,740,320
13,507,200
12,280,800
11,051,040
9,824,640
8,594,880
7,368,480
6,138,720
4,912,320
3,679,200
3,091,200

360,000

844,000

State sales tax = retail per ounce * 8.25%. Local sales tax = retail per ounce * (total retail tax – 8.25%).

license fees included:

Gross retail tax includes dispensary license fees, gross wholesale tax includes cultivation license & application fees.

City of Oakland Agenda Report 13 Jul 10 - http://clerkwebsvr1.oaklandnet.com/attachments/25359.pdf
- The 1.8% marijuana tax took effect one year ago on 21 July 2009. Dispensary sales increased 40% between 2008 and 2009 to $28 million on 6,000 pounds with a price of $291/ounce retail and $3,000/pound wholesale.
- The Rand study's floor price of $38/ounce retail (before tax) occurs at $300/pound wholesale with 100% markup, from their Altered State? study released July 2010.
Marijuana Price/Tax Table – 60% Markup

© J. Craig Canada all rights reserved www.palmspringsbum.org/blog

August 02, 2010 - 10:45 PM

Notes
Ordinance 1285 passed 17 Feb 2004, permitted 4 licensed dispensaries
- Oakland Business Tax Revenue Division reports that in 2009 the 4 dispensaries sold $28 million gross sales.
- Add Chapter 5.81 to Title 5: Business Taxes Permits & Regulations creating responsible transfer permits for California dispensaries outside of Oakland to purcahse from permitted Oakland cultivators.
- Prop 19 gives localities discretion to allow, regulate and tax production and distribution
- June 2009 Oakland passed Measure F by 80%, with no formal opposition, 1.8% tax
- dispensary sales increased 40% between 2008 and 2009.
- administrative costs exceed one Full Time Employee (FTE)
- $28 million represents approximately 6,000 pounds requiring 45,000 square feet of cultivation space
- Oakland Patient Center's dispensary license revoded for unlawfully transferring a non-transferable permit
- objective is to undercut 'unregulated cultivation' and 'lower the economic incentives'.
- dispensaries expect that they will always purchase at least 20% from inidividual collective members
- 'current industrial cultivators have some claim to legality by maintaining a list of qualified patients for whom the cultivation is intended, or in at least one case, by keeping the cultivation divided into compartments,
each belonging to a three-person collective.
- "reasonable transfer permits" will be sold to dispensaries in other cities that want to buy marijuana from Oakland (page 5)
- license fees are expected to offset 6-9 staff positions to adminster marijuana cultivation and distribution. (page 9)
- projected bay area consumption of marijuana is 350,000 pounds which would require 175,000 square feet. Oakland assumes it can get 60% of that market (page 10)
- estimates there are 10 to 15 credible and experienced large scale growers that could meet city requirements for a permit
- strikes language allowing written recommendation, only state ID cards may be used to validate patient status
- strikes prohibition on smoking at dispensary (page 24)
- provide litter removal twice a day and within 100 feet of premises (page 25)
- dispensaries must disclose percent of tetrahydracannabinal, cannbidiol, and cannabinol, tracking system for each batch (page 25)
- 6 dispensaries at $60,000 each, a dispensary is a collective with 4 or more patients
- cultivation of more than 4 pounds or 96 square feet must be licensed
- limits cultivation per patient per parcel to 32 square feet, with a maximum of 3 patients with 96 square feet per parcel.
- extension cords prohibited, electrical equipment must plug into wall or be hardwired (page 36)

Rand Study
- a single 5 x 5 home grow could provide enough for 50 average users (page 7)
- with a yield of 500 pounds per acre, the cost of industrial farming falls to about $1/pound
- If the THC content per unit weight is even one-quarter in leaves what it is in the buds (e.g., 2.5% vs. 10%THC by weight), then the leaves and other materials would contain almost half (46%) of the total THC
produced. (page 17)
- If agricultural production cost is about the same as cherry tomatoes the upper limit of the production cost is $8/pound. (page 17)
- If agricultural production cost is about the same as lettuce or asparagus the cost per pound is $2.50.
- 4,400 acres could produce enough to supply the entire U.S. market of 5,000 metric tons. The U.S. has over 922 million acres of farmland with about 300 harvested each year.
- it would take about 20,000 grow houses to produce the same amount. There are 75 million owner-occupied houses in the U.S. and 200,000 recently constructed that are vacant.
Oakland has 40% increase in production over previous year, cost in San Francisco have fallen $20.

Articles
NPR Economic Anxiety Makes City Mellow On Pot Farms http://www.npr.org/templates/story/story.php?storyId=128752964
- Wilcox's warehouse is about 43,000 square feet and has been vacant for ten years
18 May 2010 | NBC Bay Area – Pot Growers Troubled by Falling Prices http://www.nbcbayarea.com/news/local-beat/Pot-Growers-Troubled-by-Falling-Prices-jw-93964829.html
1 Aug 2010 | San Jose Mercury News – Oakland's pot dreams could burst http://www.mercurynews.com/news/ci_15645236
- Perhaps the most convincing argument arrived in a report commissioned by Jeff Wilcox, a retired contractor who first approached city leaders about the commercial grow idea. His proposal for a 100,000-square-foot
AgraMed cultivation facility would produce 21,000 pounds of pot with a wholesale value of $60 million. That translates into $3 million in new tax revenue for the city and 300 to 400 jobs for Bay Area residents — from
just one business.
27 Jul 2010 | San Francisco Chronicle – Oakland puts parcel tax on ballot http://www.sfgate.com/cgi-bin/article.cgi?f=%2Fc%2Fa%2F2010%2F07%2F26%2FBAC91EK52A.DTL
- The measure would tax medical marijuana dispensaries, growers and other processors 5 percent on top of other taxes. In addition, if state Proposition 19 passes and adult recreational use of marijuana becomes
legal, the new tax would be 10 percent. Medical cannabis is already subject to sales tax, which in Oakland is 9.75 percent. Cannabis businesses already pay 1.8 percent in addition to that.
27 Jul 2010 | The Oakland Tribune – Oakland police union makes offer to save jobs - http://www.insidebayarea.com/oaklandtribune/localnews/ci_15608301
- Earlier in the evening the council overcame pleas and threats from the medical cannabis industry and voted 5-0-3 to tax medical cannabis businesses -- both dispensaries and new cultivation businesses -- at 5
percent, and to tax recreational marijuana cultivation and sales -- if a statewide ballot measure passes in November -- at 10 percent.
26 Jul 1010 | Bay Citizen – Oakland City Council Agrees to Tax Cannabis http://www.baycitizen.org/marijuana/story/oakland-city-council-agrees-tax-cannabis/
- The Oakland City Council voted 5-0 to tax medical marijuana dispensaries and growers 5 percent of their total revenue in a meeting Monday. Under the plan, Oakland will also levy a 10 percent tax on recreational
pot if state voters pass Proposition 19 and legalize the drug in November.