Posts Tagged ‘marijuana sales’

Alaska’s Expanding Cannabis Market Sets New Sales Record

alaska-cannabisCannabis sales are booming in Alaska: in July the state sold more weed in one month than the 3-month sales average.

The Alaska Department of Revenue reported that they collected nearly $600,000 in marijuana tax revenue during July–which equals about a third of the total marijuana tax revenue brought in last fiscal year. The figures are the highest to date in Alaska since recreational sales began last October.

During the last fiscal year that ended on June 30, the cannabis industry generated $1.7 million in marijuana tax revenue for the state. In Alaska, state taxes are collected from cannabis farms rather than retail dispensaries.

The Juneau Empire reported that Fairbanks had a total of 12 cannabis farms returning tax revenue, the most of any city in the state. Anchorage came in second with seven farms. Soldotna was third with four farms, and Juneau ended tied for fourth with multiple cities having three farms.

Kalley Mazzie, Alaska’s excise tax supervisor, reported that there was no revenue from outdoor marijuana farms in July, “but it shouldn’t be much longer before we start seeing those crops make their way to market.”

In July, 612 pounds (280 kilograms) of cannabis bud and 369 pounds (170 kilograms) of stems or leaves were sold. The state collects $50 per ounce of bud and $15 per ounce for trimmings.

Despite the record sales, the figures were lower than the state expected. In fiscal year 2017, the state expected $2 million in revenue, but failed to meet the mark. In fiscal year 2018, the state expects $10.6 million in marijuana tax revenue, or an average of $883,000 per month.

Mazzie expects similar numbers when August figures are published in October.

 

Colorado Cannabis Tax Revenue Exceeds $105 Million

mjbizColorado governor John Hickenlooper signed a budget bill on Friday that earmarks how marijuana tax revenue will be spent. Marijuana is still big business in Colorado, and tax revenue from the 2016-2017 fiscal year brought more than $105 million to the state’s “Marijuana Cash Fund.”

The bill allocates funds to programs that support health programs in public schools, housing for at-risk populations, and treatment programs aimed at combating the opioid epidemic.

Housing for at-risk populations:
$15.3 million of the tax revenue will be used to pay for “permanent supportive housing and rapid re-housing assistance for individuals with behavioral health needs, and for individuals experiencing or at-risk of homelessness. By providing stable housing, which includes rental assistance and supportive services, we expect to reduce incarceration, hospitalization, and homelessness for many of Colorado’s most vulnerable citizens.”

Addressing Mental Health in Colorado’s Criminal Justice System:
The Department of Human Services will receive $7.1 million aimed at “ending the use of jails for holding people who are experiencing a mental health crisis, and to implement criminal justice diversion programs at the local level. These initiatives will help direct individuals with immediate mental health and substance needs to more appropriate services outside the criminal justice system.”

School Health Professionals Grant Program:
Colorado’s Department of Education will receive $9.7 million. The money will go towards hiring 150 health care workers  who will visit high schools statewide to provide “education, universal screening, referral, and care coordination for students with substance abuse and other behavioral health needs.”

Unregulated “Gray Market” Medical Marijuana Activity:
$5.9 million will be doled out to combat the gray market–marijuana diverted from the regulated medical and recreational markets and sold in the unregulated market. Funds will go towards reimbursing local governments for law enforcement and prosecutions costs. In addition, the governor signed legislation that places a new 12-plant cap on the number of plants that can be possessed or grown on a residential property.

Medication-Assisted Treatment Program for Opioid Addiction:
Finally, Hickenlooper signed a bill that allocates $500,000 per year for the next two years towards creating a pilot program to expand access to medication-assisted treatment in Pueblo and Routt, two Colorado counties hit hard by the opioid epidemic.

Cannabis is Quickly Becoming Colorado’s Largest Industry

marijuana-bankingA new study released by the Marijuana Policy Group shows that Colorado marijuana sales contributed $2.39 billion to the state’s economy in 2015–more taxable revenue than Colorado’s arts and sports venues combined ($777.3 million). To put those numbers in perspective, Colorado produced 112.0 metric tons of flower and 132 metric tons of flower-equivalent marijuana (concentrates, edibles).

Total 2015 numbers for the Colorado cannabis industry were $996 million in marijuana sales and $121 million in new taxes. The cannabis industry is the fastest-growing business sector in the state and has created 8,005 direct and ancillary full-time jobs in 2015.

According to the report, “each dollar spent on retail marijuana generates $2.40 in state output. This compares favorably with general retail trade, which yields $1.88 per dollar. The more traditional (and sometimes subsidized) mining sector generates $1.79 per dollar. General manufacturing generates $1.94 per dollar, and casinos generate just $1.73 per dollar of spending.

Other industries have lower output yields because their inputs are sourced from outside of the state, or because the profits are remitted to corporate owners that exist primarily outside of the state as well.”

However, the green rush won’t last forever. With more states legalizing medical and recreational marijuana, Colorado marijuana sales will reach a saturation point. The MPG report states:

“Legal marijuana demand is projected to grow by 11.3 percent per year through 2020. This growth is driven by a demand shift away from the black market and by cannabis-specific visitor demand. By 2020, the regulated market in Colorado will become saturated. Total sales value will peak near $1.52 billion dollars, and state demand will be 215.7 metric tons of flower equivalents by 2020.”

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