OAKLAND — For the last few weeks, the lines have been out the door at Harborside Health Center in Oakland, one of the world’s largest medical cannabis dispensaries. It’s not even D-Day yet for the much-anticipated Jan. 1 launch of recreational marijuana sales, when any adult 21 or over in California will be able to walk into a state-sanctioned shop for the first time and legally purchase pot without a medical marijuana card.
On the eve of this historic date, people have been flocking to Harborside to stock up on flowers, clones, tinctures, concentrates, edibles and other products before Monday when hefty new cannabis taxes kick in. The dispensary has been advertising a “Stock up and Save Sale” that included regularly priced $250 ounces of pot going for $150.
“I got a notice from them that prices could go up 38 percent,” said an Oakland businessman who was among dozens of people who queued up Friday before the dispensary opened at 10 a.m. “I got a couple of eighths which will last me for several months.”
Come Jan. 1, legally purchased cannabis is going to get more a lot more expensive because of layers of new taxes that go into effect under the voter initiative that legalized recreational marijuana for adult use. Proposition 64 gave local governments the option to allow non-medical cannabis sales, but just a few dozen have opted in statewide so far.
“That’s why we ended up having very different availability in different communities,” said Councilwoman Rebecca Kaplan, who has been a driving force in Oakland’s efforts to legalize cannabis and decriminalize its use and sale. “Oakland is one of the few that are allowing adult use sales starting Jan. 1.”
So far, six of the city’s eight dispensaries — Harborside, Purple Heart, Oakland Community Partners, Blum Oakland, Magnolia and Phytologie — have obtained the necessary local and state permits to allow them to begin recreational sales Monday. Those without state permits will be only able to accept patients with medical marijuana cards.
Oakland has also authorized eight future medical dispensaries that can choose whether to obtain permits for recreational sales. Four of those licenses will be given to applicants under a newly launched equity program that gives priority to individuals who have been convicted of a marijuana charge in Oakland or were longtime residents of neighborhoods with the highest numbers of weed arrests.
The state is imposing a new 15 percent tax on medical and recreational cannabis sales. There are also local excise and sales taxes, which vary depending on where a person makes the purchase. For example, Oakland is levying a new 10 percent tax on recreational pot sales, and 5 percent for medical users.
“The taxes, that’s going to be kind of nuts,” said Jesse Robertson, owner of Sticky Fields, a cannabis farm in Mendocino County, who supplies flowers to Purple Heart dispensary. “There are so many different ones, the consumer is going to be paying a lot when it comes to the retail point.”
Those with medical marijuana cards will pay less, which is why it’s worth it to invest in one for individuals who use a lot of cannabis, experts say. Medical patients will be able to buy more of certain products and stronger dosages.
Kaplan said the tax revenues will provide much-needed funds to help address vital public needs.
“I’ve been pushing to have more funds for homelessness and illegal dumping but the reason given for not doing those things is because of the money,” she said, adding the city estimated cannabis taxes could bring in “several million dollars,” although officials hadn’t determined a fixed amount.
Some medical marijuana patients said they hoped the surge in demand would not affect their ability to get their medicine.
A Walnut Creek woman who usually has her cannabis to treat pain delivered by Harborside, said she hadn’t been able to get through on the phone to place her order. So her husband dropped her off and she took her place in line outside Friday, supporting herself with her two crutches.
“I called about four times and got a message saying my call would be answered within 10 minutes,” she said. “I waited, but then after that it said the extension wasn’t available.”
As many with medical marijuana cards rushed to load up before the price hikes, dispensaries also stocked up on product to meet what is expected to be a surge in demand from recreational users.
“We’ve ramped up on our purchasing because we saw what happened in Washington, Oregon, Nevada and all those states where they sold more cannabis than was expected and the supply chain had multiple disruptions,” said Keith Stephenson, founder and CEO of Purple Heart.
The dispensary will open at 6 a.m. Monday, offering free tacos to customers.
“I see Oakland as still being the mecca for cannabis,” Stephenson said. “We’re going to see a growing industry happening in an organic way and a lot less people going to jail and prison.”
