Just as any expanding industry, Oakland pot growers are afraid that the legalization and taxation of marijuana in California could increase supply and reduce prices akin to those of a mega-retailer dealing in huge quantities like that of Wal-Mart – low.  They are afraid that the demand for legal marijuana will lead to the commercialization of the product itself, just like corporate farms have taken over farm land which was in families for generations across our country.  Mass production is the only way to turn a real profit when it comes to commodity goods.

In Oakland, they are planning to license four production facilities and will tax them at approximately 8%, plus required liability insurance and permit fees.  These “mega growers” concern the independent grower which have been providing various areas with medical marijuana outlets a supply for several years now. 

It’s reported by CBS that Oakland’s four outlets did $28 million in sales last year — and with the tax adopted last summer, they could benefit from $1.5 million in taxes — in a city which recently laid off 80 police offers to save money.

Source:  CBS News