Almost half of projected Prop 64 tax revenue will go uncollected

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CA Tax Official: Almost half of projected Prop 64 tax revenue will go uncollected

Data received by CA Board of Equalization also indicates Prop 64 will increase black market for marijuana, and that over 30% of Colorado pot businesses do not comply with state law

November 1, 2016
Contact: Austin Galovski Email: [email protected] +1 (585) 305-4070

[LOS ANGELES, CA] – Jerome Horton, a member of the California Board of Equalization (which administers the state’s sales and use, fuel, alcohol, tobacco, and other taxes), issued a damming letter indicating that Proposition 64’s projected tax impacts are significantly exaggerated, and that the initiative would actually increase black market activity in the state.

The letter states that “40 percent of the projected tax revenue [of Proposition 64] will not be collected” based on data received by the Board of Equalization. This pattern of legal non-compliance follows that of Colorado, the letter continues, where “the rate of non-compliance has surged … [to] more than thirty percent.”

The letter concludes by stating that “the provisions in Proposition 64 are not sufficient to protect Californians from the negative criminal and financial impact of allowing over 23 million Californians to get high.”

“As in Colorado, legalization will expand the underground market and open the door to widespread corruption and tax evasion,” said Dr. Kevin Sabet, President of SAM Action. “We commend Mr Horton for bravely speaking out on this important issue.”

“Legalization proponents continue to sell their initiatives by promising big returns for government but ignoring the massive costs associated with them, like increased drugged driving crashes,” added Jeffrey Zinsmeister, SAM Action’s Executive Vice President. “Now we know that they are also failing to inform the public about the predictable impact of tax evasion by the pot industry.”


SAM Action is a non-profit, 501(c)(4) social welfare organization dedicated to promoting healthy marijuana policies that do not involve legalizing drugs. Learn more about SAM Action and its work at visit

SAM Action, 400 N. Columbus St., Suite 202, Alexandria, VA 22314

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