There’s room for all of us: that seems to be the opinion of legal sellers of cannabis and those who deal in the black market. The legal sale of recreational cannabis began on April 1 in New Mexico, earning in excess of $3.5 million over the first weekend.
But, beyond the initial rush to legally purchase cannabis, buyers might return to the black market to avoid the high taxes that come with purchasing weed legally. New Mexico’s licensed retailers might not take a severe hit because the tax rate is not as high here as it is in some states, according to KOB 4.
Erika Hartwick Brown, who co-owns a micro-grower and sells cannabis in Albuquerque, said those who normally purchase cannabis on the black market were not turned off by the price of legal weed. "I have it on good word that they've already been here, and they are happy with what they are experiencing," Brown told KOB 4.
Brown does not expect the black market to disappear just because recreational marijuana can be purchased legally in the state. But, she added, both should be able to exist. Places where black markets are dominant have a much higher tax rate than New Mexico's, which is 20 percent. For example, an eighth of an ounce of legal weed in New Mexico costs close to $50 but is approximately $80 in Chicago, where the black market still thrives.
"I think that we can both run concurrently,” Brown said of New Mexico’s cannabis industry. "I think that's just the way of the world."
