Pricey pot: Bud buyers can expect steep taxes in 2018

LAS VEGAS, NV - JULY 06: A bud on a growing marijuana plant is shown at Essence Vegas' 54,000-square-foot marijuana cultivation facility on July 6, 2017 in Las Vegas, Nevada. On July 1, Nevada joined seven other states allowing recreational marijuana use and became the first of four states that voted to legalize recreational sales in November's election to allow dispensaries to sell cannabis for recreational use to anyone over 21. Since July 1, sales of cannabis products in the state have generated more than USD 1 million in tax revenue. (Photo by Ethan Miller/Getty Images)

One estimate says buyers could pay up to 70% above sticker price for legal marijuana.

Thinking about buying recreational pot in 2018? That high will come with high taxes. California stands to make about a $1 billion in annual tax revenue when recreational pot becomes legal next year.

Associated Press reporter Mike Blood estimates that customers could end up paying close to 70% more than the sticker price. He broke that number down for Take Two:

If you take the cost of a good quality medical marijuana at a dispensary in LA, about 1/8 of an ounce will cost you $35.

Next year, beginning with the new economy, you're going to have a 15% state excise tax that will be applied to that purchase.

There will be a 10% city tax that's expected to get rolled over to the consumer.

Then you're gonna pay the regular sales tax, which is another 10%.

You add in some costs of business that are expected to go up and very quickly you could get to $50, $60.

Businesses that make pot products could experience a significant spike in the cost of doing business starting next year. Press the blue play button above to hear why.