Alaska’s Expanding Cannabis Market Sets New Sales Record

Cannabis 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.

 

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