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Comment by ejr | Hacker News Reader

Bootleggers in the old American cities didn't suddenly stop serving their clients after prohibition ended either. Legalisation is very new and there aren't enough dispensaries to bring the price down. The article itself mentions :

  As more legal recreational dispensaries and growers enter the market, the market 
  will do what it does with greater competition: adjust. Prices will fall. 
  The illegal market will shrink accordingly.

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OK, I was just in WA, and let me assure you WA is where the black market will continue to thrive. The CO market is taxed, but is actually cheaper than the black market in CA from what I hear.

WA, however, has a state tax, county tax, city tax, and thus, prices are double that of the black market. Plus, the state really clamped down on growing permits, so there are now shortages driving prices up higher. WA and CO will show very clearly how to do this right (CO) and how to do it wrong (WA)

My news is a bit delayed, but from what I know of WA, the political atmosphere is a bit frayed. Local government is hampered by a complex web of bureaucracy and the state government may not be willing to play along.

I'm sure there are plenty of people there that want to follow the same example, but they may not have enough momentum to organize and push through as CO did.

On the other hand, it's now a source of tax revenue, and governments can generally be counted on to find the balance to maximize tax revenue.

It's too early to tell. They only just started issuing retail licenses this past month. It's slow going because each store has to meet stringent standards. But they're opening one by one.

The taxes are applied at a rate of 25% at each level of the system: growers, processors, and retailers. The remainder are standard business taxes (B&O tax) and sales tax.

From what I've seen, everyone involved has been very conscientious in implementing this law and have made adjustments to ensure that it works. If the black market continues to thrive due to taxation that is too burdensome, I expect they will adjust accordingly.

The black market here in Washington will absolutely thrive because the Washington Liquor Control Board screwed up: http://slog.thestranger.com/slog/archives/2014/07/08/how-was...

The tl;dr:

* Not enough pot: You'll never believe the name of the consulting firm hired by the state to estimate how much pot we’ll need. It’s a company called BOTEC, short for—no shit—“Back of the Envelope Calculation”

* Too few pot shops: Seattle is slated to get just 21 cannabis stores. This seemingly-arbitrary allotment is far fewer than the hundreds of dispensaries already serving medical marijuana patients only, and City Attorney Pete Holmes has repeatedly asked the liquor board to increase this number.

* Not even the state is clear on where stores are allowed: Can I open a pot business here?...But the state apparently sometimes can’t—or won’t—answer that question.

Also, I should mention that the first and last time I bought pot was when I was 15 and living in Minnesota. I might buy pot at some point, but I only smoke very rarely, and it sounds like a huge hassle at the moment. That said, were I to buy, it would be from a state-regulated store.

Not just not enough shops, but not enough product to meet demand. Supposedly the legal growers weren't nearly ready for the explosion in demand on this year's crop.

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