Tax revenue from California’s legal marijuana market fell far short of estimates in the second quarter, state officials have announced. The California Department of Tax and Fee Administration released figures for the period April through June 2018 on Wednesday.

California’s excise tax on cannabis generated nearly $43.5 million in revenue during that time. The cultivation tax generated almost  $4.5 million, and the sales tax generated more than $26 million in revenue. The department noted that sales tax is not collected on sales to medicinal cannabis patients who hold a valid medical marijuana identification card.

The figures for the second quarter represent an increase over the previous one. In the first quarter of 2018, cannabis tax revenue totaled $60.9 million, which included $32 million in excise tax, $1.6 million cultivation tax, and $27.3 million in sales tax.

Officials had estimated that total revenue from cultivation and excise taxes for the first six months of the year would amount to $185 million. But the actual total of $82 million represents a deficit of more than $100 million from state estimates.

Shortfall ‘Staggering’

State Assemblyman Evan Low told the Associated Press that the shortfall is an indication of trouble for Calfornia’s fledgling legal recreational cannabis

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