'Tax revenues derived from licensed retail sales of state-legal,
adult-use cannabis products totaled approximately $3.8 billion last year
– according to an analysis provided by the Marijuana Policy Project.
MPP’s figures do not include revenues derived from the sales of medical cannabis products and/or the collection of state-imposed regulatory fees.
Adult-use sales generated the greatest amount of revenue in California (roughly $1.1 billion), followed by Illinois, Washington, Michigan, and Colorado.
Since 2014, retail sales of adult-use cannabis products have generated $15.1 billion dollars.'
MPP’s figures do not include revenues derived from the sales of medical cannabis products and/or the collection of state-imposed regulatory fees.
Adult-use sales generated the greatest amount of revenue in California (roughly $1.1 billion), followed by Illinois, Washington, Michigan, and Colorado.
Since 2014, retail sales of adult-use cannabis products have generated $15.1 billion dollars.'
- NORML
"Hemp drugs, of which ganja is the principal, constitute one of the chief sources of excise revenue in Bengal.
The importance of hemp-drugs in these provinces will be apparent from the fact that out of a total excise revenue of 115 lakhs in 1892-93, ganja and its congeners contributed 24 1/4 lakhs, or about 21 per cent., and occupy the second place, being next only to country spirits.
It is satisfactory to note that though the consumption of ganja has been reduced in 20 years by nearly one-third, the total revenue has during the same period been more than doubled."
- Bengal Memorandum, Report of the Indian Hemp Drugs Commission 1895
The importance of hemp-drugs in these provinces will be apparent from the fact that out of a total excise revenue of 115 lakhs in 1892-93, ganja and its congeners contributed 24 1/4 lakhs, or about 21 per cent., and occupy the second place, being next only to country spirits.
It is satisfactory to note that though the consumption of ganja has been reduced in 20 years by nearly one-third, the total revenue has during the same period been more than doubled."
- Bengal Memorandum, Report of the Indian Hemp Drugs Commission 1895
The price of cannabis varies from locality to locality, town to town, state to state, country to country. The price varies depending on the variety or strain of cannabis. The price varies depending on whether the plant is purchased in the black market or the legal market. The price varies depending on the season and demand. The price of cannabis is much lower in 'poorer' nations than in 'wealthy' nations. Cannabis is usually priced by weight either in grams or ounces. The prohibition of cannabis in most parts of the world creates a factor of unpredictability on cannabis prices, typically making it much costlier than it would otherwise have been, thus taking it out of the hands of the poorer sections of society in many cases and into the black market. William S Burroughs mentions in his book from the 1950s that he bought a kilo of high class New Orleans cannabis for $70.. Compare that with prices today in
the US where an ounce of cannabis costs sometimes even up to $400,
making it a whopping $6400 for a pound or roughly $16,000 per kilogram.
In places like India cannabis costs about $1000 per kilogram, in the
black market of course. About a year into legalization, cannabis in Canada was about 50% cheaper
in the black market compared to the legal market. In spite of this,
legal sales have been strong enough to make revenues from legal sales
overtake revenues from the black market by the end of 2020. Total
revenues from cannabis crossed the $1 billion mark in 2020.
With legal cannabis, businesses and governments are starting to earn revenue and taxes. The revenue and taxes earned are significant enough to make the legal cannabis industry one of the fastest growing and lucrative industries in the US today. In legalized states in the US, cannabis raised roughly the same amount of taxes as alcohol though still significantly lesser than tobacco. Cannabis revenues and taxes are starting to figure regularly in state budget considerations across the US. In early 2020, California crossed the $1 billion mark in terms of tax revenue, just 2 years after it legalized adult recreational use. Colorado, the oldest adult-use market generated more than $2 billion in revenue in 2021 and a combined revenue of more than $10 billion till date since recreational legalization. According to MJBizDaily, "With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined. Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer."
With legal cannabis, businesses and governments are starting to earn revenue and taxes. The revenue and taxes earned are significant enough to make the legal cannabis industry one of the fastest growing and lucrative industries in the US today. In legalized states in the US, cannabis raised roughly the same amount of taxes as alcohol though still significantly lesser than tobacco. Cannabis revenues and taxes are starting to figure regularly in state budget considerations across the US. In early 2020, California crossed the $1 billion mark in terms of tax revenue, just 2 years after it legalized adult recreational use. Colorado, the oldest adult-use market generated more than $2 billion in revenue in 2021 and a combined revenue of more than $10 billion till date since recreational legalization. According to MJBizDaily, "With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined. Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer."
Every US state that has legalized recreational cannabis is only seeing
sales and revenues go upward. Each month appears to break the records
set in the previous month. Considering that cannabis is just starting to take off in the food, beverages, wellness and hi-tech industries and that newer cannabis compounds with incredible potential are being constantly discovered, you can say that what we have seen so far is just the tip of the iceberg.
Money from taxes is being used by municipalities for community development, education, public infrastructure improvement, equity, revamping law enforcement, etc. The rate of tax on cannabis is typically fixed at the state level, since the growth and trade of cannabis is primarily a state issue in most places where it has been legalized for recreational and/or medical purposes. Cannabis businesses still face issues in their operating tax structures which are currently not exactly industry friendly. Lack of banking access is also one of the biggest issues facing the cannabis industry in the US.
In 19th century India, before the prohibition of cannabis by the British, the state of Bengal earned nearly 21% of its revenue from the sale of cannabis. This was despite vastly reducing the area of cultivation and bringing in regulation in the form of cultivation, wholesale and retail licenses. In my home state of Karnataka, India, excise revenue from alcohol accounts for 20% of total revenue collection. If cannabis was legalized, it would form a significant chunk of excise tax contribution to the state treasury. Alcohol lobbies fear that cannabis will impact their markets, and so pressurize lawmakers to keep it prohibited. What both the lobbies and lawmakers fail to realize is that cannabis will be an additional source of tax revenue for the authorities. This will reduce the tax burden on the alcohol lobby, helping them to offer better prices to the consumer and therefore possibly greater sales and revenue for themselves. The story is the same in every place where alcohol contributes significantly to state taxes. The story is the same with regard to tobacco too. What lawmakers need to understand is that cannabis offers a much needed boost to their tax collection without significantly impacting other sectors that currently contribute to it. Cannabis is a robust and key path to state revenue rather than damaging and oppressive paths, such as legalization of gambling, increase in fuel prices and income taxes on the middle class.
Cannabis sales in the US in 2020 during the Covid pandemic was a great example of the reliability and stability of cannabis as a source of revenue and taxes for businesses and governments. In almost all the US states with legalized recreational cannabis, cannabis was declared an essential service along with other services deemed critical for society. Cannabis sales contributed significantly to state coffers, enabling many of these US states to tide over the disruption of the pandemic. The success of cannabis in helping tide over the pandemic crisis was so evident that six more states brought about legalization of cannabis in either medical or recreational form by December 2020. By the end of March 2021, New York and New Mexico had joined in with recreational legalization in Virginia and other states, as well as the federal US, appearing imminent. With federal legalization, many hurdles to current revenues and taxes such as banking, inter-state commerce, reticence from numerous municipalities will disappear. I expect that the synergies that these changes will unleash will see significant surges in US revenues and taxes, as well as price drops coupled with increases in sales volumes in the coming years.
The same synergies that will come about with US federal legalization are likely to happen globally as more and more nations legalize cannabis for recreational use. Cannabis related international trade, banking, funding for businesses, reduction of black markets, cost savings to health care, decreasing global economic damage to environment, reduction of drug enforcement costs, etc., are just some of the ways in which nations can save money and make money with cannabis. The savings and taxes generated from cannabis can be funneled into the areas requiring critical attention world wide, namely poverty and hunger alleviation, education, health care, sustainable development, equity, environmental protection, support for indigenous communities, etc. Cannabis has the potential to be the world's leading commodity, and a very sustainable one at that, which every single nation can benefit from.
A balance needs to be struck between demand and supply, as well as pricing and taxation. Prices should prevent people from going to the black market due to pricing concerns. Cannabis pricing must cater to all economic levels of human society. The pricing of cannabis should be such that the poorest of the poor can afford the same. Before cannabis was prohibited, the majority of its users were the
poorest people, the working classes and the religious mendicants. In a particularly oppressive move to tax
these sections of society and, if possible, to get them to switch over to
the more expensive (and harmful) alcohol, tobacco and opium, governments
restricted access to cannabis and increased prices. Current high prices evident in the US and Canada may be a result of the initial demand following legalization. As more and more places legalize and home growing increases, one expects the price of cannabis to eventually reach normal levels. When I say normal, the price is around that of similar herbs in the market such as celery, basil, etc., or commodities such as tea or coffee.
Cannabis branding, advertising, retail, packaging and processing can target affluent consumers with their desire for high price products. For the poorest people however, cannabis should be available as a commodity with no compromise on its organic quality. At a minimum, individuals should be given back the freedom, which has been wrongfully taken away from them world wide, to grow their own cannabis at home for personal consumption. This will make the plant affordable and accessible to the ones who need it the most, and the ones who are likely to benefit the most from access to it, the poorest, the minorities, the indigenous communities, the elderly and the ill. Many millions of people have lost precious years in prison and still are doing so, all because they grew and smoked the same plant that governments and businesses are now falling over each other trying to make money out of. In the process of looking at cannabis as an opportunity to make lots of money, nobody, including these governments, regulators and businessmen, should forget that the plant has to be accessible to those who want and need the plant the most.
It is time to make access to the plant for the most number of people worldwide the central goal, and not how much money can be made from it. The revenue, profits and taxes will come anyway.
Related articles
The following set of articles related to the subject are taken from various media. Words in italics are the thoughts of yours truly at the time of reading the article.Taxes derived from the licensed sale of state-regulated cannabis products totaled more than $4 billion in 2023, according to an analysis provided by the Marijuana Policy Project.
MPP’s estimates do not include revenues derived from the sale of medical cannabis products or from the collection of state-imposed regulatory fees.
Cannabis sales generated the greatest amount of tax revenue in California (nearly $1.1 billion), followed by Illinois, Washington, and Michigan.
Since 2014, retail sales of adult-use cannabis products have generated more than $20 billion in state tax revenue.
“In many states with legal, adult-use cannabis sales, tax revenues are allocated for social services and programs,” the report’s authors acknowledged. “This includes funding education, school construction, early literacy, public libraries, bullying prevention, behavioral health, alcohol and drug treatment, veterans’ services, conservation, job training, conviction expungement expenses, and reinvestment in communities that have been disproportionately affected by the war on cannabis, among many others.”
https://norml.org/news/2024/05/16/analysis-adult-use-cannabis-markets-generated-over-20-billion-in-state-tax-revenue/
Canadian exports of medical cannabis hit an all-time high last year as the county’s licensed producers continue to diversify from the competitive local market in favor of pursuing top-line opportunities overseas.
In the 2023-24 fiscal year, Canada exported roughly 218 million Canadian dollars ($189 million) worth of medical marijuana products for commercial and scientific use, MJBizDaily has learned.
That’s an increase of more than 36% from the previous year’s exports of CA$160 million.
https://mjbizdaily.com/canada-medical-cannabis-exports-jump-to-ca220-million-domestic-sales-decline/
The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year, according to analysis from the newly released MJBiz Factbook.
While the industry has experienced sales declines – especially in mature western markets – the expansion of new recreational and medical marijuana facilities in states such as Maryland, Missouri and New York continue to foster growth.
With more new cannabis markets on the horizon, the industry will add upward of $200 billion in additional spending to the U.S. economy by 2030.
The projections do not take into account any action from the U.S. government such as federal rescheduling or legalization, though each could increase revenue and economic impact.
The economic multiplier paints a picture of the cannabis industry's impact on the broader economy.
This means that for every $1 that consumers and patients spend at adult-use stores and MMJ dispensaries, an additional $2.50 will be injected into the economy - much of it at the local level.
https://mjbizdaily.com/marijuana-industry-will-add-112-4-billion-to-us-economy-in-2024-mjbiz-factbook/
Canadian recreational cannabis sales were worth 5.07 billion Canadian dollars ($3.8 billion) in 2023, an increase of 12.2% compared to 2022, according to government retail sales data released Thursday.
The year-over-year retail trend marks a slowing growth rate for Canadian cannabis sales as the market matures, more than five years after adult-use legalization in October 2018.
The vast majority of growth in legal cannabis sales comes from consumers transitioning from the illicit market, Poulos said.
Going into 2024, the illicit market still controls roughly 40% of cannabis sales in Canada, he estimates.
https://mjbizdaily.com/canadian-recreational-cannabis-sales-surpass-ca5-billion-in-2023/
The U.S. Census Bureau has released its first report on state-level marijuana tax revenue data following what the agency calls “a complete canvass of all state agencies” going back to July 2021. In the 18-month period between then and the end of 2022, the data show, states collected more than $5.7 billion from licensed cannabis sales.
The launch of the report, which the agency plans to update on a quarterly basis going forward, signals that at least some parts of the federal government are now beginning to treat the cannabis industry as a legitimate sector of the economy. The Census Bureau first announced in January 2021 that it would begin collecting marijuana tax figures for its quarterly summary of state and local government tax revenue. It also said it wants states to submit cannabis revenue data as part of annual reports as well.
https://www.marijuanamoment.net/states-made-more-than-5-7-billion-in-marijuana-tax-revenue-over-18-month-period-new-federal-census-bureau-report-shows/
Amid declining medical cannabis sales in Canada’s domestic market and cutthroat competition in the adult-use industry, some licensed producers are increasingly looking to overseas markets for a financial lifeline.
Exports continued to surge in the 2022-23 fiscal year, with Canada shipping medical cannabis products worth 160 million Canadian dollars ($118 million) overseas, a 50% increase over 2021-22’s CA$107 million, according to figures shared by Health Canada with MJBizDaily.
David Hyde, CEO of Hyde Advisory & Investments in Toronto, believes Canada will have a leg up over competing export countries for a few more years.
“For the next two or three years, at least, we’re going to see continually increasing medical numbers (exports),” he said in a phone interview.
The brisk export growth comes as domestic sales of medical cannabis continue to contract.
https://mjbizdaily.com/canadian-cannabis-exports-surge-50-percent-to-ca160-million-in-2022-23/
Colorado generated more tax revenue from marijuana than alcohol or cigarettes during the last fiscal year, with $280 million in cannabis tax dollars going toward a variety of government programs and services like K–12 education and health care.
An analysis from the state’s nonpartisan Legislative Council Staff (LCS) released on Wednesday showed that even though annual marijuana tax revenue has decreased significantly over the past two years, marijuana sales are still contributing more funds to Colorado’s budget than other regulated substances.
In fact, tax revenue from marijuana in the past year amounted to nearly as much as the state generated from alcohol ($56 million) and cigarettes ($234 million) combined. Cannabis tax revenue also surpassed that of non-cigarette tobacco products ($61 million) and nicotine products ($56 million) in Fiscal Year 2022-2023.
https://www.marijuanamoment.net/colorados-marijuana-tax-brought-in-more-revenue-than-alcohol-or-cigarettes-last-year-new-state-report-shows/
MPP’s estimates do not include revenues derived from the sale of medical cannabis products or from the collection of state-imposed regulatory fees.
Cannabis sales generated the greatest amount of tax revenue in California (nearly $1.1 billion), followed by Illinois, Washington, and Michigan.
Since 2014, retail sales of adult-use cannabis products have generated more than $20 billion in state tax revenue.
“In many states with legal, adult-use cannabis sales, tax revenues are allocated for social services and programs,” the report’s authors acknowledged. “This includes funding education, school construction, early literacy, public libraries, bullying prevention, behavioral health, alcohol and drug treatment, veterans’ services, conservation, job training, conviction expungement expenses, and reinvestment in communities that have been disproportionately affected by the war on cannabis, among many others.”
https://norml.org/news/2024/05/16/analysis-adult-use-cannabis-markets-generated-over-20-billion-in-state-tax-revenue/
Canadian exports of medical cannabis hit an all-time high last year as the county’s licensed producers continue to diversify from the competitive local market in favor of pursuing top-line opportunities overseas.
In the 2023-24 fiscal year, Canada exported roughly 218 million Canadian dollars ($189 million) worth of medical marijuana products for commercial and scientific use, MJBizDaily has learned.
That’s an increase of more than 36% from the previous year’s exports of CA$160 million.
https://mjbizdaily.com/canada-medical-cannabis-exports-jump-to-ca220-million-domestic-sales-decline/
The total U.S. economic impact generated by regulated marijuana sales could top $112.4 billion in 2024, about 12% more than last year, according to analysis from the newly released MJBiz Factbook.
While the industry has experienced sales declines – especially in mature western markets – the expansion of new recreational and medical marijuana facilities in states such as Maryland, Missouri and New York continue to foster growth.
With more new cannabis markets on the horizon, the industry will add upward of $200 billion in additional spending to the U.S. economy by 2030.
The projections do not take into account any action from the U.S. government such as federal rescheduling or legalization, though each could increase revenue and economic impact.
The economic multiplier paints a picture of the cannabis industry's impact on the broader economy.
This means that for every $1 that consumers and patients spend at adult-use stores and MMJ dispensaries, an additional $2.50 will be injected into the economy - much of it at the local level.
https://mjbizdaily.com/marijuana-industry-will-add-112-4-billion-to-us-economy-in-2024-mjbiz-factbook/
Canadian recreational cannabis sales were worth 5.07 billion Canadian dollars ($3.8 billion) in 2023, an increase of 12.2% compared to 2022, according to government retail sales data released Thursday.
The year-over-year retail trend marks a slowing growth rate for Canadian cannabis sales as the market matures, more than five years after adult-use legalization in October 2018.
The vast majority of growth in legal cannabis sales comes from consumers transitioning from the illicit market, Poulos said.
Going into 2024, the illicit market still controls roughly 40% of cannabis sales in Canada, he estimates.
https://mjbizdaily.com/canadian-recreational-cannabis-sales-surpass-ca5-billion-in-2023/
The U.S. Census Bureau has released its first report on state-level marijuana tax revenue data following what the agency calls “a complete canvass of all state agencies” going back to July 2021. In the 18-month period between then and the end of 2022, the data show, states collected more than $5.7 billion from licensed cannabis sales.
The launch of the report, which the agency plans to update on a quarterly basis going forward, signals that at least some parts of the federal government are now beginning to treat the cannabis industry as a legitimate sector of the economy. The Census Bureau first announced in January 2021 that it would begin collecting marijuana tax figures for its quarterly summary of state and local government tax revenue. It also said it wants states to submit cannabis revenue data as part of annual reports as well.
https://www.marijuanamoment.net/states-made-more-than-5-7-billion-in-marijuana-tax-revenue-over-18-month-period-new-federal-census-bureau-report-shows/
Amid declining medical cannabis sales in Canada’s domestic market and cutthroat competition in the adult-use industry, some licensed producers are increasingly looking to overseas markets for a financial lifeline.
Exports continued to surge in the 2022-23 fiscal year, with Canada shipping medical cannabis products worth 160 million Canadian dollars ($118 million) overseas, a 50% increase over 2021-22’s CA$107 million, according to figures shared by Health Canada with MJBizDaily.
David Hyde, CEO of Hyde Advisory & Investments in Toronto, believes Canada will have a leg up over competing export countries for a few more years.
“For the next two or three years, at least, we’re going to see continually increasing medical numbers (exports),” he said in a phone interview.
The brisk export growth comes as domestic sales of medical cannabis continue to contract.
https://mjbizdaily.com/canadian-cannabis-exports-surge-50-percent-to-ca160-million-in-2022-23/
Colorado generated more tax revenue from marijuana than alcohol or cigarettes during the last fiscal year, with $280 million in cannabis tax dollars going toward a variety of government programs and services like K–12 education and health care.
An analysis from the state’s nonpartisan Legislative Council Staff (LCS) released on Wednesday showed that even though annual marijuana tax revenue has decreased significantly over the past two years, marijuana sales are still contributing more funds to Colorado’s budget than other regulated substances.
In fact, tax revenue from marijuana in the past year amounted to nearly as much as the state generated from alcohol ($56 million) and cigarettes ($234 million) combined. Cannabis tax revenue also surpassed that of non-cigarette tobacco products ($61 million) and nicotine products ($56 million) in Fiscal Year 2022-2023.
https://www.marijuanamoment.net/colorados-marijuana-tax-brought-in-more-revenue-than-alcohol-or-cigarettes-last-year-new-state-report-shows/
'Tax revenues derived from licensed retail sales of state-legal, adult-use cannabis products totaled approximately $3.8 billion last year – according to an analysis provided by the Marijuana Policy Project.
MPP’s figures do not include revenues derived from the sales of medical cannabis products and/or the collection of state-imposed regulatory fees.
Adult-use sales generated the greatest amount of revenue in California (roughly $1.1 billion), followed by Illinois, Washington, Michigan, and Colorado.
Since 2014, retail sales of adult-use cannabis products have generated $15.1 billion dollars.
“States that have made the decision to legalize and regulate cannabis are benefiting from hundreds of millions in tax revenue each year,” said Toi Hutchinson, President of MPP. “These new streams of revenue are helping to fund crucial social services and programs across the country, such as education, alcohol and drug treatment, veterans’ services, job training, and reinvestment in communities that have been disproportionately affected by the war on cannabis.”'
https://norml.org/news/2023/05/04/analysis-adult-use-cannabis-sales-have-generated-over-15-billion-in-state-tax-revenue/
MPP’s figures do not include revenues derived from the sales of medical cannabis products and/or the collection of state-imposed regulatory fees.
Adult-use sales generated the greatest amount of revenue in California (roughly $1.1 billion), followed by Illinois, Washington, Michigan, and Colorado.
Since 2014, retail sales of adult-use cannabis products have generated $15.1 billion dollars.
“States that have made the decision to legalize and regulate cannabis are benefiting from hundreds of millions in tax revenue each year,” said Toi Hutchinson, President of MPP. “These new streams of revenue are helping to fund crucial social services and programs across the country, such as education, alcohol and drug treatment, veterans’ services, job training, and reinvestment in communities that have been disproportionately affected by the war on cannabis.”'
https://norml.org/news/2023/05/04/analysis-adult-use-cannabis-sales-have-generated-over-15-billion-in-state-tax-revenue/
According to the Canada Revenue Agency (CRA), the federal government assessed approximately CA$862.3 million in total duty on cannabis products between the 2018-19 and 2020-21 fiscal years, most of which has been shared with provinces and territories.
The CRA has yet to publish comparable figures for the 2021-22 financial year.
But the most recent public accounts, which detail the government’s expenses and revenues, show the federal government received revenue from the cannabis levy worth CA$160.2 million that year, bringing total duty since 2018 to a minimum of CA$1.02 billion.
https://mjbizdaily.com/canadian-cannabis-duty-tops-ca1-billion-since-2018/
The CRA has yet to publish comparable figures for the 2021-22 financial year.
But the most recent public accounts, which detail the government’s expenses and revenues, show the federal government received revenue from the cannabis levy worth CA$160.2 million that year, bringing total duty since 2018 to a minimum of CA$1.02 billion.
https://mjbizdaily.com/canadian-cannabis-duty-tops-ca1-billion-since-2018/
Regulators in California collected the largest amount of excise tax revenue ($774 million) while regulators in Alaska collected the least ($30 million).
In the two states with the most mature adult-use cannabis markets – Colorado and Washington – cannabis excise tax revenues outpaced those collected on the sale of alcohol and tobacco. “Broadly speaking, the experience of Colorado and Washington demonstrate that a state can collect a significant amount of revenue from marijuana taxes and that collection should mostly increase over time,” the report’s authors wrote.
The Center’s analysis did not tabulate additional revenues generated from state sales taxes and/or locally imposed taxes on cannabis products.
https://norml.org/news/2022/10/13/analysis-marijuana-excise-taxes-yield-nearly-3-billion-in-revenue-in-fiscal-year-2022
'I have never declined paying the highway tax, because I am as desirous of being a good neighbor as I am of being a bad subject; and as for supporting schools, I am doing my part to educate my fellow countrymen now. It is for no particular item in the tax bill that I refuse to pay it. I simply wish to refuse allegiance to the State, to withdraw and stand aloof from it effectually. I do not care to trace the course of my dollar, if I could, till it buys a man or a musket to shoot with - the dollar is innocent - but I am concerned to trace the effects of my allegiance. In fact, I quietly declare war with the State, after my fashion, though I will still make what use and get what advantage of her I can, as is usual in such cases. If others pay the tax which is demanded of me from a sympathy with the State, they do what they have already done in their own case, or rather they abet injustice to a greater extent than the State requires. If they pay the tax from a mistaken interest in the individual taxed, to save his property or prevent his going to jail, it is because they have not considered wisely how far they let their private feelings interfere with the public good. This, then, is my position at present. But one cannot be too much on his guard in such a case, lest his action be biased by obstinacy or an undue regard for the opinions of men. Let him see that he does only what belongs to himself and to the hour.' - Civil Disobedience, Henry D Thoreau, Selected Writings on Nature and Liberty.
'Illinois has officially exceeded $1 billion in adult-use marijuana sales in 2021, a major economic milestone since the state launched its retail market last year.
The Illinois Department of Financial and Professional Regulation (IDFPR) reported on Tuesday that there were $123,375,372 in recreational cannabis purchases in October, raising the total to $1.12 billion for the year so far.
Adults purchased 2,757,354 marijuana products last month, with most sales ($81,212,423) coming from state residents and the remainder ($42,162,949) from out-of-state visitors.'
https://www.marijuanamoment.net/illinois-has-sold-more-than-1-billion-in-marijuana-so-far-this-year-state-officially-announces/
'Nevada retailers sold more than $1 billion in medical and recreational marijuana over a one-year period, state officials announced on Wednesday.
The Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation released the data, which shows $1,003,467,655 in taxable cannabis purchases in Fiscal Year 2021, which ran from July 1, 2020 to June 30, 2021.
By contrast, total marijuana sales for the prior 2020 fiscal year amounted to $685 million.'
https://www.marijuanamoment.net/nevada-sold-more-than-1-billion-in-marijuana-in-one-year-officials-report/
The Illinois Department of Financial and Professional Regulation (IDFPR) reported on Tuesday that there were $123,375,372 in recreational cannabis purchases in October, raising the total to $1.12 billion for the year so far.
Adults purchased 2,757,354 marijuana products last month, with most sales ($81,212,423) coming from state residents and the remainder ($42,162,949) from out-of-state visitors.'
https://www.marijuanamoment.net/illinois-has-sold-more-than-1-billion-in-marijuana-so-far-this-year-state-officially-announces/
'Nevada retailers sold more than $1 billion in medical and recreational marijuana over a one-year period, state officials announced on Wednesday.
The Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation released the data, which shows $1,003,467,655 in taxable cannabis purchases in Fiscal Year 2021, which ran from July 1, 2020 to June 30, 2021.
By contrast, total marijuana sales for the prior 2020 fiscal year amounted to $685 million.'
https://www.marijuanamoment.net/nevada-sold-more-than-1-billion-in-marijuana-in-one-year-officials-report/
'Unlike much of the Republican party, reality-minded organizations such as the IRS cannot ignore facts in favor of doctrine. Therefore, despite the best efforts of obstructionist Republicans, the IRS is explicitly on the side of business owners and fair trade, and thus, on the side of legal cannabis.'
https://shepherdexpress.com/cannabis/cannabis/irs-launches-cannabis-initiative-to-support-federally-illega/
https://shepherdexpress.com/cannabis/cannabis/irs-launches-cannabis-initiative-to-support-federally-illega/
'A group of small- and medium-sized Canadian marijuana cultivators is calling on the federal government to reform its cannabis excise tax regime, seeking an end to a flat minimum per-gram tax and other tax adjustments based on a producer’s size.
The Stand For Craft campaign, which launched Wednesday, says it represents “craft (licensed producers), processors, and micro cultivators coming forward to reiterate systemic financial dysfunction in the current excise regime.”
Specifically, the campaign advocates for removal of the 1 Canadian dollar (78 cents)-minimum-per-gram excise tax, while reforming the alternative percentage-based per gram tax.
It calls on the government to apply that percentage-based excise tax based on “different tax tiers” for micro-cultivators, “craft-scale standard growers,” “small to medium cultivation enterprises” and “large cultivators.”'
https://mjbizdaily.com/new-canadian-campaign-seeks-reduced-cannabis-excise-taxes/
'Harris wrote that the new program will entail:
- More training and job aids for IRS agents conducting marijuana business audits.
- “Coordination and a consistent approach” by the IRS toward the entire cannabis industry.
- Figuring out new ways “to identify non-compliant taxpayers.”
- Collaborating with “external stakeholders” to educate more in the industry as to their tax obligations under 280E.
- Disseminating more information to those in the industry on how to comply with 280E.'
https://mjbizdaily.com/irs-debuts-initiative-to-help-cannabis-companies-pay-taxes-properly/
'Director Robert Mujica Jr., state analysts said that New York stands to generate about $20 million in revenue from adult-use cannabis business license fees next year. And as the market matures, marijuana tax revenue and license fees are expected to generate $245 million by fiscal year 2025.
At the same time, cigarette tax revenue is expected to continue to decline, dropping from $972 million in the 2022 fiscal year to $852 million in 2025.
The state said that “along with the second year of license fees, the State’s THC-based and retail excise taxes on the sale of adult-use cannabis products are projected to generate $115 million,” and those increases “are partially offset by a continued decline in taxable cigarette consumption.”
In other words, New York is seeing the same trend that’s playing out nationally. People are smoking fewer cigarettes while more adults are trying cannabis. And creating a regulated market for marijuana is helping to create an alternative revenue source for states that legalize.
Part of the reason behind that trend seems to be public perception. A 2018 Gallup poll found that 96 percent of Americans view cigarettes as either “very harmful” or “somewhat harmful,” compared to only 56 percent of respondents said the same about cannabis.'
https://www.marijuanamoment.net/new-york-officials-say-marijuana-tax-revenue-will-help-fill-budget-gap-from-declining-cigarette-sales/
- More training and job aids for IRS agents conducting marijuana business audits.
- “Coordination and a consistent approach” by the IRS toward the entire cannabis industry.
- Figuring out new ways “to identify non-compliant taxpayers.”
- Collaborating with “external stakeholders” to educate more in the industry as to their tax obligations under 280E.
- Disseminating more information to those in the industry on how to comply with 280E.'
https://mjbizdaily.com/irs-debuts-initiative-to-help-cannabis-companies-pay-taxes-properly/
'Director Robert Mujica Jr., state analysts said that New York stands to generate about $20 million in revenue from adult-use cannabis business license fees next year. And as the market matures, marijuana tax revenue and license fees are expected to generate $245 million by fiscal year 2025.
At the same time, cigarette tax revenue is expected to continue to decline, dropping from $972 million in the 2022 fiscal year to $852 million in 2025.
The state said that “along with the second year of license fees, the State’s THC-based and retail excise taxes on the sale of adult-use cannabis products are projected to generate $115 million,” and those increases “are partially offset by a continued decline in taxable cigarette consumption.”
In other words, New York is seeing the same trend that’s playing out nationally. People are smoking fewer cigarettes while more adults are trying cannabis. And creating a regulated market for marijuana is helping to create an alternative revenue source for states that legalize.
Part of the reason behind that trend seems to be public perception. A 2018 Gallup poll found that 96 percent of Americans view cigarettes as either “very harmful” or “somewhat harmful,” compared to only 56 percent of respondents said the same about cannabis.'
https://www.marijuanamoment.net/new-york-officials-say-marijuana-tax-revenue-will-help-fill-budget-gap-from-declining-cigarette-sales/
'Lemme look at the bill again,' said Ford. He picked it up and studied it thoughtfully under the malevolent gaze of the barman and the equally malevolent gaze of the bird, which was currently gouging great furrows in the bar top with its talons.
It was a rather lengthy piece of paper.
At the bottom of it was a number which looked like one of those serial numbers you find on the underside of stereo sets which always takes so long to copy onto a registration form. He had, after all, been in the bar all day, he had been drinking a lot of stuff with bubbles in it, and he had bought an awful lot of rounds for all the pimps, thugs and record executives who suddenly couldn't remember who he was.
He cleared his throat rather quietly and patted his pockets. There was, as he knew, nothing in them. He rested his left hand lightly but firmly on the half-opened flap of his satchel. The disembodied hand renewed its pressure on his right shoulder.
'You see,' said the barman, and his face seemed to wobble evilly in front of Ford's, 'I have a reputation to think of. You see that, don't you?'
This is it, thought Ford. There was nothing else for it. He had obeyed the rules, he had made a bona fide attempt to pay his bill, it had been rejected. He was now in danger of his life.
'Well,' he said quietly, 'if it's your reputation...'
With a sudden flash of speed he opened his satchel and slapped down on the bar top his copy of The Hitchhiker's Guide to the Galaxy and the official card which said that he was a field researcher for the Guide and absolutely not allowed to do what he was now doing.
'Want a write up?'
The barman's face stopped in mid-wobble. The birds talons stopped in mid-furrow. The hand slowly released its grip.
'That,' said the barman in a barely audible whisper, from between dry lips, 'will do nicely, sir.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'Karla Avila and Jacob Johnson started Flowerdaze Farm in California’s famed Emerald Triangle with a focus on farming cannabis sustainably with as small of a carbon footprint as possible.
Today, their small farm produces 200-300 pounds of craft cannabis annually, selling for up to $1,500 per pound. But thanks to their regenerative farming techniques, their costs are extraordinarily low.
In this episode of Seed to CEO, Karla and Jacob share:
- How to be both a regenerative and profitable farm.
- How to reduce nutrient and other input costs by using inputs already available on the farm.
- How to market regeneratively grown cannabis and get top dollar for it.'
https://mjbizdaily.com/podcast/regenerative-rewards-low-cost-cannabis-farming-with-high-returns/
It was a rather lengthy piece of paper.
At the bottom of it was a number which looked like one of those serial numbers you find on the underside of stereo sets which always takes so long to copy onto a registration form. He had, after all, been in the bar all day, he had been drinking a lot of stuff with bubbles in it, and he had bought an awful lot of rounds for all the pimps, thugs and record executives who suddenly couldn't remember who he was.
He cleared his throat rather quietly and patted his pockets. There was, as he knew, nothing in them. He rested his left hand lightly but firmly on the half-opened flap of his satchel. The disembodied hand renewed its pressure on his right shoulder.
'You see,' said the barman, and his face seemed to wobble evilly in front of Ford's, 'I have a reputation to think of. You see that, don't you?'
This is it, thought Ford. There was nothing else for it. He had obeyed the rules, he had made a bona fide attempt to pay his bill, it had been rejected. He was now in danger of his life.
'Well,' he said quietly, 'if it's your reputation...'
With a sudden flash of speed he opened his satchel and slapped down on the bar top his copy of The Hitchhiker's Guide to the Galaxy and the official card which said that he was a field researcher for the Guide and absolutely not allowed to do what he was now doing.
'Want a write up?'
The barman's face stopped in mid-wobble. The birds talons stopped in mid-furrow. The hand slowly released its grip.
'That,' said the barman in a barely audible whisper, from between dry lips, 'will do nicely, sir.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'Karla Avila and Jacob Johnson started Flowerdaze Farm in California’s famed Emerald Triangle with a focus on farming cannabis sustainably with as small of a carbon footprint as possible.
Today, their small farm produces 200-300 pounds of craft cannabis annually, selling for up to $1,500 per pound. But thanks to their regenerative farming techniques, their costs are extraordinarily low.
In this episode of Seed to CEO, Karla and Jacob share:
- How to be both a regenerative and profitable farm.
- How to reduce nutrient and other input costs by using inputs already available on the farm.
- How to market regeneratively grown cannabis and get top dollar for it.'
https://mjbizdaily.com/podcast/regenerative-rewards-low-cost-cannabis-farming-with-high-returns/
'The state revenue agency projected medical marijuana sales will have crossed the $400 million mark by the end of Labor Day weekend.
According to the state Department of Finance and Administration, sales through Thursday totaled $398.34 million on 59,047 pounds sold. Based on those figures, medical marijuana patients have paid about $15 per gram on average.'
https://www.hotsr.com/news/2021/sep/06/medical-marijuana-sales-nearing-400-million-mark/
'If the trend continues, the state is on track to see more than $1 billion in adult-use marijuana sales in 2021.
That would mean a significant increase revenue for the state. Illinois sold about $670 million in cannabis last year and took in $205.4 million in tax revenue.
Illinois took in more tax dollars from marijuana than alcohol for the first time last quarter, the state Department of Revenue reported in May. From January to March, Illinois generated about $86,537,000 in adult-use marijuana tax revenue, compared to $72,281,000 from liquor sales.'
https://www.marijuanamoment.net/illinois-adult-use-marijuana-sales-exceed-100-million-for-sixth-month-in-a-row-state-data-shows/
According to the state Department of Finance and Administration, sales through Thursday totaled $398.34 million on 59,047 pounds sold. Based on those figures, medical marijuana patients have paid about $15 per gram on average.'
https://www.hotsr.com/news/2021/sep/06/medical-marijuana-sales-nearing-400-million-mark/
'If the trend continues, the state is on track to see more than $1 billion in adult-use marijuana sales in 2021.
That would mean a significant increase revenue for the state. Illinois sold about $670 million in cannabis last year and took in $205.4 million in tax revenue.
Illinois took in more tax dollars from marijuana than alcohol for the first time last quarter, the state Department of Revenue reported in May. From January to March, Illinois generated about $86,537,000 in adult-use marijuana tax revenue, compared to $72,281,000 from liquor sales.'
https://www.marijuanamoment.net/illinois-adult-use-marijuana-sales-exceed-100-million-for-sixth-month-in-a-row-state-data-shows/
'Massachusetts marijuana sales have topped $2 billion since the state’s adult-use market launched in late 2018, the Cannabis Control Commission reported on Wednesday.
Gross sales from the state’s 165 cannabis retailers and three delivery services reached $2,009,007,478 as of August 31. That doubles the sales total that the commission reported last November, according to the state’s seed-to-sale tracking system.'
https://www.marijuanamoment.net/massachusetts-marijuana-sales-top-2-billion-since-launch-of-adult-use-market-regulators-report/
Gross sales from the state’s 165 cannabis retailers and three delivery services reached $2,009,007,478 as of August 31. That doubles the sales total that the commission reported last November, according to the state’s seed-to-sale tracking system.'
https://www.marijuanamoment.net/massachusetts-marijuana-sales-top-2-billion-since-launch-of-adult-use-market-regulators-report/
'Today, a major California retail owner and market expert told Leafly, “The legal and illegal market prices have equalized.”
Fixing the legal California market’s oversupply problem will require new stores in new cities, and lowering cultivation taxes to match the shrinking profit margins industry-wide, said Devitt.
“There’s no quick fix, but to bring more stability to the market and sustain one of the State’s great heritage industries, we need to open up more jurisdictions to retail and we need to fix the cultivation tax system, which is a flat tax based on weight. At $154.40 per pound, the tax rate is currently 20% to 70% or higher, while taxes were 10% to 15% a year ago,” said Devitt.'
https://www.leafly.com/news/industry/california-pot-supply-glut-2021
Fixing the legal California market’s oversupply problem will require new stores in new cities, and lowering cultivation taxes to match the shrinking profit margins industry-wide, said Devitt.
“There’s no quick fix, but to bring more stability to the market and sustain one of the State’s great heritage industries, we need to open up more jurisdictions to retail and we need to fix the cultivation tax system, which is a flat tax based on weight. At $154.40 per pound, the tax rate is currently 20% to 70% or higher, while taxes were 10% to 15% a year ago,” said Devitt.'
https://www.leafly.com/news/industry/california-pot-supply-glut-2021
'It is likely that the additional costs introduced by the proposed tax structure will be passed on to consumers via higher retail prices. That would reduce the cost-competitiveness of the legal market against the illicit market, especially in those states with the highest state and local taxes, thereby perpetuating the entrenchment of the illicit market.
The proposed tax structure in the CAOA, while modeled on the alcohol industry, fails to account for differences in the structure of the cannabis industry as it exists today. Concerns about disruptions that such a tax structure would impose upon the industry are a key point of concern for industry stakeholders, serving as one of several rallying points for opposition to the currently proposed legislation.'
https://newfrontierdata.com/cannabis-insights/proposed-federal-cannabis-tax-model-could-create-significant-disruptions-drive-higher-costs-for-the-industry/
The proposed tax structure in the CAOA, while modeled on the alcohol industry, fails to account for differences in the structure of the cannabis industry as it exists today. Concerns about disruptions that such a tax structure would impose upon the industry are a key point of concern for industry stakeholders, serving as one of several rallying points for opposition to the currently proposed legislation.'
https://newfrontierdata.com/cannabis-insights/proposed-federal-cannabis-tax-model-could-create-significant-disruptions-drive-higher-costs-for-the-industry/
'In a wide-ranging letter to members of Congress, Colorado Attorney General Phil Weiser warned there could be “potential resulting disruption” to the existing state-legal marijuana markets if federal legalization isn’t structured carefully.
In particular, Weiser singled out the suggested 25% national marijuana tax rate included in Senate Majority Leader Chuck Schumer’s recently introduced bill, the Cannabis Administration and Opportunity Act.
Weiser warned that such a high tax rate could cost states valuable tax revenue of their own and force them to chop budgets on social equity programs or for other programs that rely on marijuana taxes.'
https://mjbizdaily.com/colorado-ag-warns-of-marijuana-market-disruption-if-federal-legalization-isnt-done-right/
'California collected about $817 million in adult-use marijuana tax revenue during the 2020-2021 fiscal year, state officials estimated on Monday. That’s 55 percent more cannabis earnings for state coffers than was generated in the prior fiscal year.
The nonpartisan Legislative Analyst’s Office said combined excise and cultivation tax revenue for the fourth quarter, which ended in June, amounted to $212 million—roughly tying the first quarter of the fiscal year for the most tax dollars raised in any single three-month period since legal sales launched.
The new figures do not take into account additional regular sales taxes generated from cannabis, nor do they include any local revenues to municipalities where the transactions take place.'
https://www.marijuanamoment.net/california-shattered-marijuana-tax-revenue-record-in-latest-fiscal-year-state-reports/
In particular, Weiser singled out the suggested 25% national marijuana tax rate included in Senate Majority Leader Chuck Schumer’s recently introduced bill, the Cannabis Administration and Opportunity Act.
Weiser warned that such a high tax rate could cost states valuable tax revenue of their own and force them to chop budgets on social equity programs or for other programs that rely on marijuana taxes.'
https://mjbizdaily.com/colorado-ag-warns-of-marijuana-market-disruption-if-federal-legalization-isnt-done-right/
'California collected about $817 million in adult-use marijuana tax revenue during the 2020-2021 fiscal year, state officials estimated on Monday. That’s 55 percent more cannabis earnings for state coffers than was generated in the prior fiscal year.
The nonpartisan Legislative Analyst’s Office said combined excise and cultivation tax revenue for the fourth quarter, which ended in June, amounted to $212 million—roughly tying the first quarter of the fiscal year for the most tax dollars raised in any single three-month period since legal sales launched.
The new figures do not take into account additional regular sales taxes generated from cannabis, nor do they include any local revenues to municipalities where the transactions take place.'
https://www.marijuanamoment.net/california-shattered-marijuana-tax-revenue-record-in-latest-fiscal-year-state-reports/
'“I think this is a very active item—and in doing so, I believe that is becoming more and more mainstream,” he said. “Right now, if we get legislation to regulate—the question is if they’re going to legalize it—then my presentation next year will be very different.”
While IRS hasn’t advocated for a federal cannabis policy change, it has stood out as an agency that understands the complications created by prohibition—and it’s taken steps to provide clarity to taxpayers and financial professionals to navigate the space.'
https://www.marijuanamoment.net/irs-hosts-marijuana-and-cryptocurrency-tax-event-that-highlights-legalization-support/
While IRS hasn’t advocated for a federal cannabis policy change, it has stood out as an agency that understands the complications created by prohibition—and it’s taken steps to provide clarity to taxpayers and financial professionals to navigate the space.'
https://www.marijuanamoment.net/irs-hosts-marijuana-and-cryptocurrency-tax-event-that-highlights-legalization-support/
'The Cannabis Administration and Opportunity Act – unveiled earlier this month as a 163-page “discussion draft” – would legalize marijuana by removing it from the federal Controlled Substances Act.
That means it would eliminate Section 280E, the provision in the Internal Revenue Service tax code that prevents marijuana businesses from deducting the same ordinary business expenses that mainstream industries can.
But a 25% federal excise tax on marijuana – on top of any state and local taxes – would hit growers especially hard, quite likely exceeding their savings from the elimination of 280E, experts said.'
https://mjbizdaily.com/proposed-tax-rates-in-schumers-marijuana-reform-bill-elicit-sticker-shock/
That means it would eliminate Section 280E, the provision in the Internal Revenue Service tax code that prevents marijuana businesses from deducting the same ordinary business expenses that mainstream industries can.
But a 25% federal excise tax on marijuana – on top of any state and local taxes – would hit growers especially hard, quite likely exceeding their savings from the elimination of 280E, experts said.'
https://mjbizdaily.com/proposed-tax-rates-in-schumers-marijuana-reform-bill-elicit-sticker-shock/
'Sales in the largest provincial market of Ontario increased by 2.8% on a month-over-month basis to $111.2 million. Ontario’s sales accounted for more than 35% of Canada’s total legal cannabis sales in the month.
The second-largest provincial market, Alberta, posted CA$59.7 million worth of cannabis sales for May, 1.4% higher than April.
Sales in Quebec, the third-largest market, grew by 1.6% over April to CA$49.6 million.'
https://mjbizdaily.com/canadian-cannabis-sales-reach-new-record-of-ca313-million-in-may/
The second-largest provincial market, Alberta, posted CA$59.7 million worth of cannabis sales for May, 1.4% higher than April.
Sales in Quebec, the third-largest market, grew by 1.6% over April to CA$49.6 million.'
https://mjbizdaily.com/canadian-cannabis-sales-reach-new-record-of-ca313-million-in-may/
'Americans spent more than $12 billion on legal cannabis products in the first six months of 2021, according to data analyzed by Leafly and Whitney Economics.
That’s nearly as much as Americans spent on milk in all of 2020. According to the Dairy Farmers of America, consumers spent roughly $12.6 billion on milk last year.
Cannabis sales topped $18 billion in 2020. The six-month trend in 2021 puts the industry on pace to reach $25 billion to $26 billion in sales by the end of the year. That would represent a year-over-year revenue increase of roughly 35%.
That growth would continue the cannabis industry’s position as the nation’s fastest-growing industry. In 2020, sales revenue increased roughly 60% over 2019, driven by increased buying during the coronavirus pandemic. '
https://www.leafly.com/news/industry/americans-on-pace-to-spend-twice-as-much-on-weed-as-on-milk
That’s nearly as much as Americans spent on milk in all of 2020. According to the Dairy Farmers of America, consumers spent roughly $12.6 billion on milk last year.
Cannabis sales topped $18 billion in 2020. The six-month trend in 2021 puts the industry on pace to reach $25 billion to $26 billion in sales by the end of the year. That would represent a year-over-year revenue increase of roughly 35%.
That growth would continue the cannabis industry’s position as the nation’s fastest-growing industry. In 2020, sales revenue increased roughly 60% over 2019, driven by increased buying during the coronavirus pandemic. '
https://www.leafly.com/news/industry/americans-on-pace-to-spend-twice-as-much-on-weed-as-on-milk
'Last year was a big deal for cannabis.
Despite the COVID-19 pandemic, cannabis producers and retailers have experienced a huge boom in sales of over $ 20 billion in the United States alone.
The main reason for this is that despite widespread economic closure, cannabis was considered “essential” in most states where it is legal.
This meant that the pharmacy remained open, with most developed curbside pickups or even delivery options for buyers.
As a result, the cannabis business was booming, while other industries slowed until they crawled or stopped. It’s mid-year, but you can see if the strength of 2020 was a momentary change or a carry trend.'
https://californianewstimes.com/cannabis-industry-5-year-forecast-money-markets/413135/
'An in-depth look at water usage in the regulated cannabis cultivation market reveals how it compares to the illicit market and traditional agricultural sectors. On a per-pound basis, cannabis might be better compared to more valuable, scarce cash crops. Mid-range cannabis in the United States, costing approximately $1,500/lb., is comparable to the price a pound of saffron fetched in Delhi, India, last year ($1,496), or the same amount of Italian white truffles ($1,581). Notably, the substantial expense associated with saffron and truffles are in part derived from the labor-intensive collection process for the former, and the relative rarity and difficulty in procuring the latter.
Consequently, cannabis is not only one of the world’s most valuable cash crops, but the industry’s market value has potential to increase dramatically, with only incremental increases in production. Across the globe, nations which have legalized cannabis for either medical or adult use have found the plant to be an enticing source of additional revenue. At the same time, agricultural research and innovation should normalize cultivation practices and lead to greater resource efficiency.'
https://newfrontierdata.com/cannabis-insights/bureaucratic-restraints-constrain-cannabis-as-a-commodity/
Despite the COVID-19 pandemic, cannabis producers and retailers have experienced a huge boom in sales of over $ 20 billion in the United States alone.
The main reason for this is that despite widespread economic closure, cannabis was considered “essential” in most states where it is legal.
This meant that the pharmacy remained open, with most developed curbside pickups or even delivery options for buyers.
As a result, the cannabis business was booming, while other industries slowed until they crawled or stopped. It’s mid-year, but you can see if the strength of 2020 was a momentary change or a carry trend.'
https://californianewstimes.com/cannabis-industry-5-year-forecast-money-markets/413135/
'An in-depth look at water usage in the regulated cannabis cultivation market reveals how it compares to the illicit market and traditional agricultural sectors. On a per-pound basis, cannabis might be better compared to more valuable, scarce cash crops. Mid-range cannabis in the United States, costing approximately $1,500/lb., is comparable to the price a pound of saffron fetched in Delhi, India, last year ($1,496), or the same amount of Italian white truffles ($1,581). Notably, the substantial expense associated with saffron and truffles are in part derived from the labor-intensive collection process for the former, and the relative rarity and difficulty in procuring the latter.
Consequently, cannabis is not only one of the world’s most valuable cash crops, but the industry’s market value has potential to increase dramatically, with only incremental increases in production. Across the globe, nations which have legalized cannabis for either medical or adult use have found the plant to be an enticing source of additional revenue. At the same time, agricultural research and innovation should normalize cultivation practices and lead to greater resource efficiency.'
https://newfrontierdata.com/cannabis-insights/bureaucratic-restraints-constrain-cannabis-as-a-commodity/
'Analysis by New Frontier Data projects legal cannabis sales to increase by approximately 4.4% from the first to second quarters of 2021. Quarterly sales across legal medical and adult-use states reached an all-time high of $5.84 billion in Q1-2021, with sales for Q2-2021 projected to surpass $6 billion.
In calendar year 2020, total combined sales of cannabis across legal medical and adult-use state markets crossed the $20 billion threshold. With 10 newly legalized state markets expected to activate sales in the next two years, total annual legal sales nationwide are projected to grow at a compound annual growth rate (CAGR) of 16% over the next five years, reaching $43 billion by 2025.'
https://newfrontierdata.com/cannabis-insights/u-s-mid-year-report-legal-industry-projected-to-top-6-billion-in-quarterly-sales-for-q2-2021/
In calendar year 2020, total combined sales of cannabis across legal medical and adult-use state markets crossed the $20 billion threshold. With 10 newly legalized state markets expected to activate sales in the next two years, total annual legal sales nationwide are projected to grow at a compound annual growth rate (CAGR) of 16% over the next five years, reaching $43 billion by 2025.'
https://newfrontierdata.com/cannabis-insights/u-s-mid-year-report-legal-industry-projected-to-top-6-billion-in-quarterly-sales-for-q2-2021/
'Licensed retailers in Maine sold nearly $5.4 million of adult-use cannabis in May, marking the state’s best-ever month for recreational sales, and Arkansas’ total sales of regulated medical marijuana have exceeded $330 million since legal MMJ sales launched there in 2019.
Maine’s May sales total was about $1 million more than in April, according to a news release from Maine’s Office of Marijuana Policy (OMP) that cited preliminary figures from the Metrc tracking system.'
https://mjbizdaily.com/maine-breaks-adult-use-cannabis-sales-mark-arkansas-mmj-total-passes-330-million/
'Adult-use marijuana programs are generating billions of dollars in tax revenues for state governments each year – bolstering the economic and equity case for legalization in other markets across the country as well as at the federal level.
The economic argument might particularly resonate among reluctant Republican lawmakers on Capitol Hill, experts say.
States with legal adult-use marijuana markets in operation already have generated nearly $8 billion in tax revenue combined since 2014, including $2.7 billion in 2020, according to a new report by Washington DC-based Marijuana Policy Project (MPP).
California leads the way, generating an estimated $1 billion in tax revenue in 2020 alone, while Washington state has produced the most since 2014 ($2.6 billion).'
https://mjbizdaily.com/marijuana-legalization-efforts-get-boost-from-billions-in-mj-tax-dollars/
Maine’s May sales total was about $1 million more than in April, according to a news release from Maine’s Office of Marijuana Policy (OMP) that cited preliminary figures from the Metrc tracking system.'
https://mjbizdaily.com/maine-breaks-adult-use-cannabis-sales-mark-arkansas-mmj-total-passes-330-million/
'Adult-use marijuana programs are generating billions of dollars in tax revenues for state governments each year – bolstering the economic and equity case for legalization in other markets across the country as well as at the federal level.
The economic argument might particularly resonate among reluctant Republican lawmakers on Capitol Hill, experts say.
States with legal adult-use marijuana markets in operation already have generated nearly $8 billion in tax revenue combined since 2014, including $2.7 billion in 2020, according to a new report by Washington DC-based Marijuana Policy Project (MPP).
California leads the way, generating an estimated $1 billion in tax revenue in 2020 alone, while Washington state has produced the most since 2014 ($2.6 billion).'
https://mjbizdaily.com/marijuana-legalization-efforts-get-boost-from-billions-in-mj-tax-dollars/
'Total tax revenue reported by the cannabis industry is $245 million for 1st Quarter returns. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for 4th Quarter 2020 returns was revised to $300.9 million, which included $151.7 million in cannabis excise tax, $41.6 million in cultivation tax, and $107.6 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments. Cannabis tax revenue data is available on the CDTFA Open Data Portal.
Since January 2018, total program revenue to date is $2.38 billion, which includes $1.2 billion in cannabis excise tax, $298.4 million in cultivation tax, and $882.7 million in sales tax.'
https://www.cdtfa.ca.gov/news/21-04.htm
Since January 2018, total program revenue to date is $2.38 billion, which includes $1.2 billion in cannabis excise tax, $298.4 million in cultivation tax, and $882.7 million in sales tax.'
https://www.cdtfa.ca.gov/news/21-04.htm
'States that have legalized marijuana for adult use have collectively generated nearly $8 billion in tax revenue from cannabis since legal sales first began in 2014, according to a new report from the Marijuana Policy Project (MPP).
The analysis examined the tax structure and revenue streams of all 18 states that have legalized recreational cannabis, though sales have not launched yet in seven of those states. Overall, it shows that establishing regulated marijuana markets gives states a steady and generally growing source of revenue that can support various programs and services.
Last year alone, the adult-use states collected $2.7 billion in taxes from cannabis sales. And as more markets come online and others mature, that’s expected to continue to grow.'
https://www.marijuanamoment.net/legal-marijuana-states-have-generated-nearly-8-billion-in-tax-revenue-since-recreational-sales-launched-report-finds/
The analysis examined the tax structure and revenue streams of all 18 states that have legalized recreational cannabis, though sales have not launched yet in seven of those states. Overall, it shows that establishing regulated marijuana markets gives states a steady and generally growing source of revenue that can support various programs and services.
Last year alone, the adult-use states collected $2.7 billion in taxes from cannabis sales. And as more markets come online and others mature, that’s expected to continue to grow.'
https://www.marijuanamoment.net/legal-marijuana-states-have-generated-nearly-8-billion-in-tax-revenue-since-recreational-sales-launched-report-finds/
'The average price per milligram of THC in infused cannabis products such as beverages and edibles has declined steadily since January 2020, a likely sign of increased competition as marijuana markets mature.
Noninhalable marijuana products vary by size, dosage and item price, so measuring the price by the amount of THC it contains provides a valuable tool for comparing product categories and markets.
But the decline could also be explained by a change in post-pandemic buying trends as marijuana consumers spend more on products with higher THC doses.
For example, edibles with 100 milligrams of THC have accounted for a larger share of sales in California, Colorado, Nevada and Washington state, increasing from 78% in January 2020 to 83% this month.'
https://mjbizdaily.com/price-per-milligram-of-thc-declining-in-cannabis-infused-products/
Noninhalable marijuana products vary by size, dosage and item price, so measuring the price by the amount of THC it contains provides a valuable tool for comparing product categories and markets.
But the decline could also be explained by a change in post-pandemic buying trends as marijuana consumers spend more on products with higher THC doses.
For example, edibles with 100 milligrams of THC have accounted for a larger share of sales in California, Colorado, Nevada and Washington state, increasing from 78% in January 2020 to 83% this month.'
https://mjbizdaily.com/price-per-milligram-of-thc-declining-in-cannabis-infused-products/
'Consumers have purchased over $10 billion worth of cannabis products since retail sales became legal in 2014, according data compiled by the state’s department of Revenue.
In all, retailers have sold $10.5 billion worth of products. Tax revenue from those sales totals $1.7 billion – much of which has been earmarked toward public schools and infrastructure projects.
Sales have been steadily increasing year-over-year in Colorado since legalization. In March, retailers sold $207 million worth of cannabis products, a near historic high.'
https://norml.org/news/2021/05/20/colorado-surpasses-10-billion-in-retail-cannabis-sales
'The outcome in the closely watched case means that marijuana companies will continue to be taxed by the federal government at a far higher rate than mainstream businesses – unless Congress and the Biden administration approve legislation legalizing MJ and taxing the businesses like any other industry.
Section 280E bars state-legal marijuana companies from taking standard business deductions on their federal taxes.'
https://mjbizdaily.com/us-appeals-court-denies-cannabis-firm-harborsides-bid-to-end-280e/
In all, retailers have sold $10.5 billion worth of products. Tax revenue from those sales totals $1.7 billion – much of which has been earmarked toward public schools and infrastructure projects.
Sales have been steadily increasing year-over-year in Colorado since legalization. In March, retailers sold $207 million worth of cannabis products, a near historic high.'
https://norml.org/news/2021/05/20/colorado-surpasses-10-billion-in-retail-cannabis-sales
'The outcome in the closely watched case means that marijuana companies will continue to be taxed by the federal government at a far higher rate than mainstream businesses – unless Congress and the Biden administration approve legislation legalizing MJ and taxing the businesses like any other industry.
Section 280E bars state-legal marijuana companies from taking standard business deductions on their federal taxes.'
https://mjbizdaily.com/us-appeals-court-denies-cannabis-firm-harborsides-bid-to-end-280e/
'If 280E no longer applies, many investors expect tax savings would directly flow into net income, and we have seen some simplistic analyses that point to 50% to 120% increases in earnings.
But we think much of the tax savings will be reinvested into the business instead, because a tax cut is just a low-cost source of capital and the nascent legal cannabis industry still needs to invest billions to build out the entire supply chain.
All the money that went to 280E taxes won’t flow to investors via increased free cash flow or distributions, but smart investors will be happy to own a larger, faster-growing business in the future with less equity dilution today.'
https://mjbizdaily.com/how-will-cannabis-stocks-be-impacted-if-section-280e-is-scrapped/
'None of the top 10 weeks (based on revenue) for 2016-20 have fallen in January, February, March or May.
Most of the highest-revenue weeks during that same time fell in late summer, starting with August, or in December.
In 2019, high-revenue weeks shifted almost entirely toward the last part of the year, leaving the week of 4/20 as a stark sales high point for the first six months of the year.'
https://mjbizdaily.com/three-takeaways-from-4-20-cannabis-sales-data/
'In 2020 the cannabis industry was the fastest-growing industry in the U.S., despite the crippling economic effects of pandemic-related closures and quarantines. According to the Leafly 2021 Jobs Report, the cannabis industry added more than 77,000 jobs, marking a 32% increase from 2019. Astonishingly, cannabis workers now outnumber dentists, EMTs, and electrical engineers in the U.S., and cannabis sales are providing a valuable and consistent source of new tax revenue to struggling state and local economies.
Last spring, state and local governments across the nation deemed cannabis operators “essential” or “critical” businesses, authorizing them to remain open throughout the pandemic as long as they followed physical distancing and other public health guidelines. The “essential” designation was both a welcome lifeline for an industry frequently deprived of many of the benefits and resources enjoyed by other legal businesses, such as banking, insurance, and small business loans, and a milestone in the fight to destigmatize the industry.'
https://www.denverpost.com/2021/04/20/marijuana-businesses-essential-4-20-cannabis-colorado/
But we think much of the tax savings will be reinvested into the business instead, because a tax cut is just a low-cost source of capital and the nascent legal cannabis industry still needs to invest billions to build out the entire supply chain.
All the money that went to 280E taxes won’t flow to investors via increased free cash flow or distributions, but smart investors will be happy to own a larger, faster-growing business in the future with less equity dilution today.'
https://mjbizdaily.com/how-will-cannabis-stocks-be-impacted-if-section-280e-is-scrapped/
'None of the top 10 weeks (based on revenue) for 2016-20 have fallen in January, February, March or May.
Most of the highest-revenue weeks during that same time fell in late summer, starting with August, or in December.
In 2019, high-revenue weeks shifted almost entirely toward the last part of the year, leaving the week of 4/20 as a stark sales high point for the first six months of the year.'
https://mjbizdaily.com/three-takeaways-from-4-20-cannabis-sales-data/
'In 2020 the cannabis industry was the fastest-growing industry in the U.S., despite the crippling economic effects of pandemic-related closures and quarantines. According to the Leafly 2021 Jobs Report, the cannabis industry added more than 77,000 jobs, marking a 32% increase from 2019. Astonishingly, cannabis workers now outnumber dentists, EMTs, and electrical engineers in the U.S., and cannabis sales are providing a valuable and consistent source of new tax revenue to struggling state and local economies.
Last spring, state and local governments across the nation deemed cannabis operators “essential” or “critical” businesses, authorizing them to remain open throughout the pandemic as long as they followed physical distancing and other public health guidelines. The “essential” designation was both a welcome lifeline for an industry frequently deprived of many of the benefits and resources enjoyed by other legal businesses, such as banking, insurance, and small business loans, and a milestone in the fight to destigmatize the industry.'
https://www.denverpost.com/2021/04/20/marijuana-businesses-essential-4-20-cannabis-colorado/
'While Toronto is the leader in Canada when it comes to nominal cannabis sales, the nation’s largest city by population is nowhere near the top when it comes to per-person spending on recreational marijuana.
Torontonians spent CA$50.95 per person on legal cannabis products last year on average, ahead of Montreal, Gatineau, Quebec, and last-place Vancouver, British Columbia.
Edmonton and Calgary in Alberta were the leaders with per-person cannabis spending totaling CA $128.85 and CA$99.61, respectively.
Winnipeg, Manitoba, was third at CA$90.26 per person.'
https://mjbizdaily.com/how-much-legal-cannabis-is-being-sold-in-canadas-biggest-cities/
'Authors reported, “Powered by an expanding legal market and a pandemic-driven boost in cannabis use, excise and sales taxes on cannabis jumped by more than $1 billion in 2020, or 58 percent, compared to a year earlier. In total, these taxes raised more than $3 billion last year, including $1 billion in California alone.”
Transactions specific to the commercial market in California were responsible for over one-third of the nation’s total cannabis tax growth in 2020. Year-over-year, cannabis tax revenue rose some 40 percent in the state.'
https://norml.org/news/2021/03/25/analysis-tax-revenue-from-legal-cannabis-sales-tops-3-billion-in-2020
Torontonians spent CA$50.95 per person on legal cannabis products last year on average, ahead of Montreal, Gatineau, Quebec, and last-place Vancouver, British Columbia.
Edmonton and Calgary in Alberta were the leaders with per-person cannabis spending totaling CA $128.85 and CA$99.61, respectively.
Winnipeg, Manitoba, was third at CA$90.26 per person.'
https://mjbizdaily.com/how-much-legal-cannabis-is-being-sold-in-canadas-biggest-cities/
'Authors reported, “Powered by an expanding legal market and a pandemic-driven boost in cannabis use, excise and sales taxes on cannabis jumped by more than $1 billion in 2020, or 58 percent, compared to a year earlier. In total, these taxes raised more than $3 billion last year, including $1 billion in California alone.”
Transactions specific to the commercial market in California were responsible for over one-third of the nation’s total cannabis tax growth in 2020. Year-over-year, cannabis tax revenue rose some 40 percent in the state.'
https://norml.org/news/2021/03/25/analysis-tax-revenue-from-legal-cannabis-sales-tops-3-billion-in-2020
'Tax rates vary dramatically from state to state. Many states tax medical marijuana at a minimal level or not at all. Adult-use states tend to tax non-medical cannabis at so-called sin tax rates, 20% to 35% and higher, much like alcohol.
For some medical patients in adult-use states, it can be easier to buy non-medical cannabis products and skip the hassle of getting or renewing a medical card. For others, a $50 or $100 med card renewal may save them thousands in adult-use cannabis excise taxes.
An excise tax is a tax on a specific product—in this case, cannabis. Many states levy a marijuana excise tax in addition to the regular state sales tax. Some local towns and counties may also add an additional 1% to 3% tax on top of that. It does add up.'
https://www.leafly.com/news/industry/marijuana-tax-rates-by-state
'The marijuana market still has potential to grow as more states enter the fray. Estimates suggest that the legal market was worth between $11.0 billion and $13.7 billion in 2019, and may be worth up to $30 billion by 2023. If these projections materialize, the value of marijuana sales will grow to two times that of firearms and ammunition, and three times that of McDonald’s sales revenue in the U.S (2018 data). In 2019, recreational marijuana was estimated to make up about 60 percent of the market, but is expected to grow to closer to 75 percent by 2023. In the recreational market, the product split is fairly even between flower-based products and infused products/concentrates.'
https://taxfoundation.org/excise-taxes-excise-tax-trends#Marijuana
'The Colorado cannabis market hit a high-water mark – $10 billion in sales – since the state started selling licensed recreational marijuana in 2014.
According to recently released Colorado Department of Revenue sales figures, the state’s recreational and medical marijuana retailers brought in $187.6 million in January 2021, bringing the market total to $10.2 billion.'
https://mjbizdaily.com/colorado-cannabis-sales-top-10-billion-since-program-launch/
'Consequently, while the state produced over 7.1 million tons of grapes valued at $6.3 billion dollars, and nearly 2.3 million tons of almonds valued at $5.5 billion dollars, the state produced less than 10,000 tons of smokable cannabis flower (for the legal and illicit markets combined), but for a total value of nearly $25 billion dollars. That comparative scale in yield to market value is a key reason why, despite longstanding conventional wisdom, cannabis comparatively uses so much less water per dollar gained than California’s other leading crops.
As explained in Cannabis H20: Water Use and Sustainability in Cultivation, New Frontier Data’s latest report (in partnership with Resource Innovation Institute and the University of California, Berkeley), our estimates found that while the state’s orchards use nearly 7 million acre-feet of water, and rice fields use nearly 5 million acre-feet, the state’s lucrative cannabis industry only uses 3,000 acre-feet, making it the most water-economical crop among the state’s top revenue crops.'
https://newfrontierdata.com/cannabis-insights/legal-cannabis-cultivations-footprint-sinks-common-assumptions-about-comparative-water-use/
'Canadian sales of legal recreational cannabis totaled 2.6 billion Canadian dollars ($2.08 billion) in 2020, as December sales increased from a relatively sluggish November.
Licensed marijuana retailers across the country sold CA$298.4 million worth of cannabis in December, up 14.3% from November, according to new retail trade data released Friday by national data agency Statistics Canada.
Canada’s 2020 total represents a 120% increase over 2019 cannabis sales, which were valued at CA $1.2 billion.'
https://mjbizdaily.com/canada-tallies-ca2-6-billion-in-cannabis-sales-for-2020-up-120-over-2019/
For some medical patients in adult-use states, it can be easier to buy non-medical cannabis products and skip the hassle of getting or renewing a medical card. For others, a $50 or $100 med card renewal may save them thousands in adult-use cannabis excise taxes.
An excise tax is a tax on a specific product—in this case, cannabis. Many states levy a marijuana excise tax in addition to the regular state sales tax. Some local towns and counties may also add an additional 1% to 3% tax on top of that. It does add up.'
https://www.leafly.com/news/industry/marijuana-tax-rates-by-state
'The marijuana market still has potential to grow as more states enter the fray. Estimates suggest that the legal market was worth between $11.0 billion and $13.7 billion in 2019, and may be worth up to $30 billion by 2023. If these projections materialize, the value of marijuana sales will grow to two times that of firearms and ammunition, and three times that of McDonald’s sales revenue in the U.S (2018 data). In 2019, recreational marijuana was estimated to make up about 60 percent of the market, but is expected to grow to closer to 75 percent by 2023. In the recreational market, the product split is fairly even between flower-based products and infused products/concentrates.'
https://taxfoundation.org/excise-taxes-excise-tax-trends#Marijuana
'The Colorado cannabis market hit a high-water mark – $10 billion in sales – since the state started selling licensed recreational marijuana in 2014.
According to recently released Colorado Department of Revenue sales figures, the state’s recreational and medical marijuana retailers brought in $187.6 million in January 2021, bringing the market total to $10.2 billion.'
https://mjbizdaily.com/colorado-cannabis-sales-top-10-billion-since-program-launch/
'Consequently, while the state produced over 7.1 million tons of grapes valued at $6.3 billion dollars, and nearly 2.3 million tons of almonds valued at $5.5 billion dollars, the state produced less than 10,000 tons of smokable cannabis flower (for the legal and illicit markets combined), but for a total value of nearly $25 billion dollars. That comparative scale in yield to market value is a key reason why, despite longstanding conventional wisdom, cannabis comparatively uses so much less water per dollar gained than California’s other leading crops.
As explained in Cannabis H20: Water Use and Sustainability in Cultivation, New Frontier Data’s latest report (in partnership with Resource Innovation Institute and the University of California, Berkeley), our estimates found that while the state’s orchards use nearly 7 million acre-feet of water, and rice fields use nearly 5 million acre-feet, the state’s lucrative cannabis industry only uses 3,000 acre-feet, making it the most water-economical crop among the state’s top revenue crops.'
https://newfrontierdata.com/cannabis-insights/legal-cannabis-cultivations-footprint-sinks-common-assumptions-about-comparative-water-use/
'Canadian sales of legal recreational cannabis totaled 2.6 billion Canadian dollars ($2.08 billion) in 2020, as December sales increased from a relatively sluggish November.
Licensed marijuana retailers across the country sold CA$298.4 million worth of cannabis in December, up 14.3% from November, according to new retail trade data released Friday by national data agency Statistics Canada.
Canada’s 2020 total represents a 120% increase over 2019 cannabis sales, which were valued at CA $1.2 billion.'
https://mjbizdaily.com/canada-tallies-ca2-6-billion-in-cannabis-sales-for-2020-up-120-over-2019/
'The average retail price for smokable recreational marijuana products in four Western states continued to increase throughout the coronavirus pandemic, thanks to record demand.
Retail flower prices in California, Colorado, Nevada and Washington state collectively grew 17%, with the price of pre-rolls also increasing 15%.
The retail data, provided by Seattle-based cannabis analytics company Headset, reflects the average item price for the past 90 days compared to the same period last year.'
https://mjbizdaily.com/retail-prices-for-recreational-marijuana-flower-rise-in-response-to-record-demand-amid-pandemic/
Retail flower prices in California, Colorado, Nevada and Washington state collectively grew 17%, with the price of pre-rolls also increasing 15%.
The retail data, provided by Seattle-based cannabis analytics company Headset, reflects the average item price for the past 90 days compared to the same period last year.'
https://mjbizdaily.com/retail-prices-for-recreational-marijuana-flower-rise-in-response-to-record-demand-amid-pandemic/
'Investigators reported that legalization has not demonstrably impacted young people’s use of cannabis or other substances, nor has it significantly influenced overall trends in traffic safety, violent crime, or suicide rates.
“Our data showed that state-?level legalization of marijuana had generally minor effects,” authors concluded. “One notable exception was the increase in state tax revenue from legalized marijuana sales, … which has exceeded some expectations.”'
https://norml.org/news/2021/02/11/report-adult-use-legalization-laws-not-associated-with-adverse-impacts-on-public-health
“Our data showed that state-?level legalization of marijuana had generally minor effects,” authors concluded. “One notable exception was the increase in state tax revenue from legalized marijuana sales, … which has exceeded some expectations.”'
https://norml.org/news/2021/02/11/report-adult-use-legalization-laws-not-associated-with-adverse-impacts-on-public-health
'Colorado’s total marijuana sales reached nearly $10 billion since legal transactions began in 2014.
According to new figures from the state’s Department of Revenue, the combined sales of medical and recreational cannabis since 2014 reached $9.98 billion in January.
Colorado posted a record 2020 in which sales totaled $2.19 billion, a 25.35% increase over 2019.'
https://mjbizdaily.com/colorado-total-cannabis-sales-near-10-billion-buoyed-by-record-2020/
According to new figures from the state’s Department of Revenue, the combined sales of medical and recreational cannabis since 2014 reached $9.98 billion in January.
Colorado posted a record 2020 in which sales totaled $2.19 billion, a 25.35% increase over 2019.'
https://mjbizdaily.com/colorado-total-cannabis-sales-near-10-billion-buoyed-by-record-2020/
'Limited post-legalization data prevent us from ruling out that marijuana legalization causes small changes in marijuana use or other outcomes. As additional data become available, expanding this analysis will continue to inform debates surrounding marijuana reform. The data so far, however, provide little support for the strong claims about legalization made by either opponents or supporters; the notable exception is tax revenue, which has exceeded some expectations. The absence of significant adverse consequences is especially striking given the sometimes dire predictions made by legalization opponents.'
https://www.cato.org/policy-analysis/effect-state-marijuana-legalizations-2021-update
https://www.cato.org/policy-analysis/effect-state-marijuana-legalizations-2021-update
'In 2020, a year we’d all surely sooner forget, Americans spent an astonishing 67 percent more on cannabis than they did in 2019, for a total of almost $18 billion, and Covid is likely to blame.
That means sales were up more than $7 billion from the previous year, confirming our suspicion that perhaps forgetting the unending string of horrific events that took place last year was the goal all along.
According to Leafly, which crunched the numbers by assessing state tax and revenue data across all medical and adult-use markets, the coronavirus pandemic that hit the United States in March is what’s behind for American’s increased appetite for cannabis.'
https://thedalesreport.com/cannabis/thanks-to-covid-19-u-s-marijuana-sales-saw-massive-increase-in-2020/
'Some specifics:
- California’s legal market – which launched in 2018 – hit $4.4 billion in sales, compared with $2.8 billion in 2019 and $1.4 billion in 2018.
- Colorado’s sales figures for medical and recreational cannabis exceeded $2 billion even without December sales yet tabulated, up from $1.7 billion in 2019 and $1.5 billion in 2018.
- Oregon’s annual sales surpassed $1 billion for the first time in 2020, and the state had four months in a row, starting in May, when recreational and medical sales combined set a record at more than $100 million.
- Washington state, the second-oldest adult-use market in the country, reached a sales high of $1.4 billion in 2020, up from $1.1 billion in 2019 and just over $1 billion in 2018.
- Illinois set a high bar for performance in its first year of adult-use sales by breaking the $1 billion threshold.
- Massachusetts hit almost $700 million in sales, up roughly 56% from 2019 – despite last spring’s adult-use store closures.
- Even tourist-reliant Nevada, which has yet to report sales figures for the final quarter of 2020, appears on pace to beat its 2019 sales totals of $701 million, with more than $554 million in medical and recreational sales through September.'
https://mjbizdaily.com/cannabis-sales-records-smashed-or-set-in-2020-and-insiders-expect-the-gains-to-continue/
That means sales were up more than $7 billion from the previous year, confirming our suspicion that perhaps forgetting the unending string of horrific events that took place last year was the goal all along.
According to Leafly, which crunched the numbers by assessing state tax and revenue data across all medical and adult-use markets, the coronavirus pandemic that hit the United States in March is what’s behind for American’s increased appetite for cannabis.'
https://thedalesreport.com/cannabis/thanks-to-covid-19-u-s-marijuana-sales-saw-massive-increase-in-2020/
'Some specifics:
- California’s legal market – which launched in 2018 – hit $4.4 billion in sales, compared with $2.8 billion in 2019 and $1.4 billion in 2018.
- Colorado’s sales figures for medical and recreational cannabis exceeded $2 billion even without December sales yet tabulated, up from $1.7 billion in 2019 and $1.5 billion in 2018.
- Oregon’s annual sales surpassed $1 billion for the first time in 2020, and the state had four months in a row, starting in May, when recreational and medical sales combined set a record at more than $100 million.
- Washington state, the second-oldest adult-use market in the country, reached a sales high of $1.4 billion in 2020, up from $1.1 billion in 2019 and just over $1 billion in 2018.
- Illinois set a high bar for performance in its first year of adult-use sales by breaking the $1 billion threshold.
- Massachusetts hit almost $700 million in sales, up roughly 56% from 2019 – despite last spring’s adult-use store closures.
- Even tourist-reliant Nevada, which has yet to report sales figures for the final quarter of 2020, appears on pace to beat its 2019 sales totals of $701 million, with more than $554 million in medical and recreational sales through September.'
https://mjbizdaily.com/cannabis-sales-records-smashed-or-set-in-2020-and-insiders-expect-the-gains-to-continue/
'[US] Sales of legal marijuana products rose by more than $7 billion in 2020, according to an analysis of state revenue data compiled by Leafly.com.
In all, customers purchased an estimated $17.9 billion in cannabis products from legal retailers in 2020 – up from a total of $10.7 billion in 2019. Leafly’s analysis includes sales from both medical-use and adult-use retailers.'
https://norml.org/news/2021/01/21/legal-marijuana-sales-spiked-dramatically-in-2020
In all, customers purchased an estimated $17.9 billion in cannabis products from legal retailers in 2020 – up from a total of $10.7 billion in 2019. Leafly’s analysis includes sales from both medical-use and adult-use retailers.'
https://norml.org/news/2021/01/21/legal-marijuana-sales-spiked-dramatically-in-2020
'The oldest adult-use marijuana market in the United States, Colorado, hit a milestone in 2020 when sales surpassed $2 billion for the first time in a calendar year.
And that total did not include sales figures for December.'
https://mjbizdaily.com/colorado-marijuana-sales-reach-2-billion-in-2020/
And that total did not include sales figures for December.'
https://mjbizdaily.com/colorado-marijuana-sales-reach-2-billion-in-2020/
'Even during tough economic times, marijuana consumers are turning to higher-priced flower products – a signal that cannabis users are increasingly willing to spend more money on such merchandise.
The trend could be mirroring the beer and wine sectors, where enthusiasts are turning to higher-priced products as their tastes become more sophisticated.
That would be good news for marijuana brands aiming to offer premium and specialty products that fetch higher price points with better margins.'
https://mjbizdaily.com/premium-priced-cannabis-products-take-larger-share-of-overall-flower-sales
The trend could be mirroring the beer and wine sectors, where enthusiasts are turning to higher-priced products as their tastes become more sophisticated.
That would be good news for marijuana brands aiming to offer premium and specialty products that fetch higher price points with better margins.'
https://mjbizdaily.com/premium-priced-cannabis-products-take-larger-share-of-overall-flower-sales
'Third-quarter numbers released Monday by the California Department of Tax and Fee Administration (CDTFA) revealed a jump in cannabis tax revenue of almost 80% compared to Q3 last year. The state pulled in a total of $306.7 million for Q3 cannabis tax revenue in 2020, coming from an excise tax of $159.8 million, a cultivation tax of $41 million and sales tax of $105.9 million. This compares to just $170.7 million for Q3 2019.'
https://www.bizjournals.com/sanfrancisco/news/2020/11/24/state-sees-new-highs-in-revenue-from-cannabis-tax.html
'Total tax revenue reported by the cannabis industry is $306.7 million for 3rd Quarter returns due by November 2, 2020. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for 2nd Quarter 2020 returns was revised to $260.2 million, which included $135.0 million in cannabis excise tax, $30.7 million in cultivation tax, and $94.5 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments. Cannabis tax revenue data is available on the CDTFA Open Data Portal.
Since January 2018, total program revenue to date is $1.81 billion, which includes $906.4 million in cannabis excise tax, $223.3 million in cultivation tax, and $682.9 million in sales tax.'
https://www.cdtfa.ca.gov/news/20-14.htm
https://www.bizjournals.com/sanfrancisco/news/2020/11/24/state-sees-new-highs-in-revenue-from-cannabis-tax.html
'Total tax revenue reported by the cannabis industry is $306.7 million for 3rd Quarter returns due by November 2, 2020. This does not include tax revenue collected by each jurisdiction. Previously reported revenue for 2nd Quarter 2020 returns was revised to $260.2 million, which included $135.0 million in cannabis excise tax, $30.7 million in cultivation tax, and $94.5 million in sales tax. Revisions to quarterly data are the result of amended and late returns, and other tax return adjustments. Cannabis tax revenue data is available on the CDTFA Open Data Portal.
Since January 2018, total program revenue to date is $1.81 billion, which includes $906.4 million in cannabis excise tax, $223.3 million in cultivation tax, and $682.9 million in sales tax.'
https://www.cdtfa.ca.gov/news/20-14.htm
'Hemp-derived CBD oil has more of a national pricing structure, given that the crop is federally legal, unlike marijuana.
Shannon Kaygi, CEO and co-founder of Denver-based CBD-products company Eossi Beauty, breaks the oil segment into categories.
For example, hemp-derived CBD crude oil is selling for around $400-$500 per kilogram wholesale.
The oil has a cannabinoid content of around 65% and includes fats and lipids and “looks like the stuff on the bottom of a lake,” according to Kaygi.
For all of the different categories of hemp-derived CBD oil, a kilogram would on average sell for about $1,000 more last year, Kaygi said.'
https://mjbizdaily.com/wholesale-marijuana-hemp-oil-prices-fall-nationwide/
Shannon Kaygi, CEO and co-founder of Denver-based CBD-products company Eossi Beauty, breaks the oil segment into categories.
For example, hemp-derived CBD crude oil is selling for around $400-$500 per kilogram wholesale.
The oil has a cannabinoid content of around 65% and includes fats and lipids and “looks like the stuff on the bottom of a lake,” according to Kaygi.
For all of the different categories of hemp-derived CBD oil, a kilogram would on average sell for about $1,000 more last year, Kaygi said.'
https://mjbizdaily.com/wholesale-marijuana-hemp-oil-prices-fall-nationwide/
'In short, legalizing both medical and recreational cannabis in every state is looking more and more like a slam dunk. These new states will be bringing billions of earnings into state coffers, and millions more in state revenue.
Cannabis, and the tax revenue it provides, could be just the shot in the arm that this country needs for solid economic recovery in 2021 and beyond.'
https://www.laweekly.com/stimulus-checks-and-economic-rebound-courtesy-of-cannabis/
Cannabis, and the tax revenue it provides, could be just the shot in the arm that this country needs for solid economic recovery in 2021 and beyond.'
https://www.laweekly.com/stimulus-checks-and-economic-rebound-courtesy-of-cannabis/
' - In 2019 the U.S. legal cannabis industry generated an estimated $13.2 billion in sales across all medical and adult-use state markets.
- In 2020, despite socioeconomic disruptions amid the COVID-19 pandemic, total legal cannabis sales are projected beyond $19 billion.
- Projecting a compound average growth rate (CAGR) of 18% over the next five years, by 2025 total annual U.S. legal sales should exceed $35 billion.
- Between 2020-2025, the total combined U.S. market opportunity for legal cannabis sales is estimated at $172 billion.
- Projecting that 18% CAGR, annual medical cannabis sales are estimated to nearly triple from $5.8 billion in 2019 to $16 billion in 2025.
- Meantime, annual legal adult-use sales are projected to grow at a 17% CAGR, from $7.4 billion in 2019 to $19 billion in 2025.
- Conversely, illicit market sales will slow due to legal markets: New Frontier Data estimates that 17% of all 2019 U.S. cannabis sales were legal; in 2025 more than one-third (34%) of total annual demand will be met through legal markets.
- Legal cannabis industry expansion is fueled both by new markets as more states adopt legalization, and from sustained demand growth as consumers transition from illicit to legal markets.'
https://newfrontierdata.com/cannabis-insights/growth-of-the-u-s-legal-cannabis-industry/
- In 2020, despite socioeconomic disruptions amid the COVID-19 pandemic, total legal cannabis sales are projected beyond $19 billion.
- Projecting a compound average growth rate (CAGR) of 18% over the next five years, by 2025 total annual U.S. legal sales should exceed $35 billion.
- Between 2020-2025, the total combined U.S. market opportunity for legal cannabis sales is estimated at $172 billion.
- Projecting that 18% CAGR, annual medical cannabis sales are estimated to nearly triple from $5.8 billion in 2019 to $16 billion in 2025.
- Meantime, annual legal adult-use sales are projected to grow at a 17% CAGR, from $7.4 billion in 2019 to $19 billion in 2025.
- Conversely, illicit market sales will slow due to legal markets: New Frontier Data estimates that 17% of all 2019 U.S. cannabis sales were legal; in 2025 more than one-third (34%) of total annual demand will be met through legal markets.
- Legal cannabis industry expansion is fueled both by new markets as more states adopt legalization, and from sustained demand growth as consumers transition from illicit to legal markets.'
https://newfrontierdata.com/cannabis-insights/growth-of-the-u-s-legal-cannabis-industry/
"The 2020 election could be one of the most consequential and historical events to change the landscape of the legal U.S cannabis industry,” said New Frontier Data Founder & CEO Giadha A. DeCarcer. “With $9 billion in new revenue from 2022-2025, should all five states ballot measures pass, New Frontier Data estimates that revenues from all legal U.S. markets will reach $35.1B in 2025.”
https://www.businesswire.com/news/home/20200923005725/en/Over-9B-in-New-Revenue-Projected-from-Five-States-with-Cannabis-Ballot-Initiatives
'While numerous industries are suffering amid the coronavirus pandemic, the report from California is another example of how the cannabis market seems to be riding out the storm.
“Total tax revenue reported by the cannabis industry is $208.4 million for 2nd Quarter returns due by July 31, 2020. This does not include tax revenue collected by each jurisdiction,” the department said in a press release. “Previously reported revenue for 1st Quarter 2020 returns was revised to $205.9 million, which included $107.4 million in cannabis excise tax, $26.9 million in cultivation tax, and $71.6 million in sales tax.”
All told, the state has seen $1.45 billion in marijuana tax revenue since retail sales were implemented in 2018. That’s from a combination of excise, cultivation and sales taxes.'
https://www.marijuanamoment.net/california-marijuana-sales-climbing-despite-coronavirus-state-report-shows/
https://www.businesswire.com/news/home/20200923005725/en/Over-9B-in-New-Revenue-Projected-from-Five-States-with-Cannabis-Ballot-Initiatives
'While numerous industries are suffering amid the coronavirus pandemic, the report from California is another example of how the cannabis market seems to be riding out the storm.
“Total tax revenue reported by the cannabis industry is $208.4 million for 2nd Quarter returns due by July 31, 2020. This does not include tax revenue collected by each jurisdiction,” the department said in a press release. “Previously reported revenue for 1st Quarter 2020 returns was revised to $205.9 million, which included $107.4 million in cannabis excise tax, $26.9 million in cultivation tax, and $71.6 million in sales tax.”
All told, the state has seen $1.45 billion in marijuana tax revenue since retail sales were implemented in 2018. That’s from a combination of excise, cultivation and sales taxes.'
https://www.marijuanamoment.net/california-marijuana-sales-climbing-despite-coronavirus-state-report-shows/
'One day Herman told me about a kilo of first-class New Orleans weed I could pick up for seventy dollars. Pushing weed looked good on paper, like fur farming or raising frogs. At seventy-five cents a stick, seventy sticks to the ounce, it sounded like money. I was convinced, and bought the weed.' - Junky, William S Burroughs, 1977, originally published in 1953
'Suddenly I remembered about that letter. The friend in New York who'd written it was a tea head and he pushed weed from time to time. He'd written to me asking the price of good weed in New Orleans. I asked Pat, who quoted me a tentative price of forty dollars per pound. In the letter on the table my friend made reference to the forty-dollar per pound price and said he wanted some at that figure.' - Junky, William S Burroughs, 1977, originally published in 1953
'And, it’s only fair according to DeAngelo. “The cannabis industry currently pays the federal government over $5 billion in taxes each year,” he said, “and it deserves to get the benefits all other business have access to, namely safe banking.”'
https://www.forbes.com/sites/julieweed/2019/09/27/cannabis-executives-cheer-congress-approval-of-pot-business-banking/
'In addition to the continued and “dramatic” capital inflow into the cannabis industry, Kagia noted a “dramatic reassessment of cannabis's place in society and the escalation of the legalization debate in capitals and local communities across the country.” Although legislative roadblocks still hobble some states, such as New York and New Jersey, from moving ahead with legalization, public support and pressure notwithstanding, right now, the issue has assumed great importance in the political landscape. Nearly every Democratic presidential candidate “has affirmed support for some measure of federal cannabis policy reform, adding to the likelihood of a substantial policy debate during the 2020 election cycle," added Kagia. With a majority of Americans supporting legalization, according to the latest Gallup poll, and “support among younger voters being dramatically higher than that of older voters, the trend toward a more accepting view of cannabis will be generational.”'
https://www.forbes.com/sites/irisdorbian/2019/09/24/new-cannabis-report-predicts-legal-sales-to-reach-nearly-30-billion-by-2025/
'That means a gram of cannabis purchased in the illicit market was 45% cheaper on average than marijuana bought in the regulated market.
It shows Canada’s illicit market is staying competitive with the regulated market on price.'
https://mjbizdaily.com/price-gap-grows-in-canada-between-legal-illicit-cannabis/
'The sale of non-medical cannabis through legal sources represents only a portion of the cannabis market, as it appears that a substantial proportion of users still rely on illegal sources to obtain cannabis (42 per cent in 2019). Moreover, cannabis prices on the illegal market have remained considerably lower (and have been declining) compared with the prices on the legal market. In the second quarter of 2019, based on 236 submissions, the average price per gram of cannabis on the legal market was Can$10.65, compared with Can$5.93 per gram on the illegal market.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'After the cannabis regulations were adopted and sales began in October 2018, retail sales of nonmedical cannabis online and in cannabis stores up to September 2019 totalled some 908 million Canadian dollars, or an average of Can$24 (approximately $18) per capita. Although Ontario had the smallest number of retail outlets, it had the highest retail sales (Can$216 million), followed by Alberta (Can$196 million) and Quebec (Can$195 million), by the end of September 2019. Out of the total of Can$908 million, most sales were made through bricks-and-mortar stores (Can $788 million), while online retail sales (Can$120 million) accounted for 13 per cent. Direct-to-consumer trade by wholesalers, which includes retail sales by public sector stores classified as wholesalers, accounted for 1.9 per cent over the same period.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'Suddenly I remembered about that letter. The friend in New York who'd written it was a tea head and he pushed weed from time to time. He'd written to me asking the price of good weed in New Orleans. I asked Pat, who quoted me a tentative price of forty dollars per pound. In the letter on the table my friend made reference to the forty-dollar per pound price and said he wanted some at that figure.' - Junky, William S Burroughs, 1977, originally published in 1953
'And, it’s only fair according to DeAngelo. “The cannabis industry currently pays the federal government over $5 billion in taxes each year,” he said, “and it deserves to get the benefits all other business have access to, namely safe banking.”'
https://www.forbes.com/sites/julieweed/2019/09/27/cannabis-executives-cheer-congress-approval-of-pot-business-banking/
'In addition to the continued and “dramatic” capital inflow into the cannabis industry, Kagia noted a “dramatic reassessment of cannabis's place in society and the escalation of the legalization debate in capitals and local communities across the country.” Although legislative roadblocks still hobble some states, such as New York and New Jersey, from moving ahead with legalization, public support and pressure notwithstanding, right now, the issue has assumed great importance in the political landscape. Nearly every Democratic presidential candidate “has affirmed support for some measure of federal cannabis policy reform, adding to the likelihood of a substantial policy debate during the 2020 election cycle," added Kagia. With a majority of Americans supporting legalization, according to the latest Gallup poll, and “support among younger voters being dramatically higher than that of older voters, the trend toward a more accepting view of cannabis will be generational.”'
https://www.forbes.com/sites/irisdorbian/2019/09/24/new-cannabis-report-predicts-legal-sales-to-reach-nearly-30-billion-by-2025/
'That means a gram of cannabis purchased in the illicit market was 45% cheaper on average than marijuana bought in the regulated market.
It shows Canada’s illicit market is staying competitive with the regulated market on price.'
https://mjbizdaily.com/price-gap-grows-in-canada-between-legal-illicit-cannabis/
'The sale of non-medical cannabis through legal sources represents only a portion of the cannabis market, as it appears that a substantial proportion of users still rely on illegal sources to obtain cannabis (42 per cent in 2019). Moreover, cannabis prices on the illegal market have remained considerably lower (and have been declining) compared with the prices on the legal market. In the second quarter of 2019, based on 236 submissions, the average price per gram of cannabis on the legal market was Can$10.65, compared with Can$5.93 per gram on the illegal market.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'After the cannabis regulations were adopted and sales began in October 2018, retail sales of nonmedical cannabis online and in cannabis stores up to September 2019 totalled some 908 million Canadian dollars, or an average of Can$24 (approximately $18) per capita. Although Ontario had the smallest number of retail outlets, it had the highest retail sales (Can$216 million), followed by Alberta (Can$196 million) and Quebec (Can$195 million), by the end of September 2019. Out of the total of Can$908 million, most sales were made through bricks-and-mortar stores (Can $788 million), while online retail sales (Can$120 million) accounted for 13 per cent. Direct-to-consumer trade by wholesalers, which includes retail sales by public sector stores classified as wholesalers, accounted for 1.9 per cent over the same period.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
' 'Listen,' he said. 'On a waiter's bill pad numbers dance. You must have encountered the phenomenon.'
'Well...'
'On a waiter's bill pad,' said Slartibartfast, 'reality and unreality collide on such a fundamental level that each becomes the other and anything is possible, within certain parameters.'
'What parameters?'
'It's impossible to day,' said Slartibartfast. 'That's one of them. Strange but true. At least, I think it's strange,' he added, 'and I am assured that it's true.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'The supply shortage is also reflected in prices: The average retail price for an ounce of flower in the adult-use market was nearly $410 in May, according to the latest monthly report from Michigan’s Marijuana Regulatory Agency (MRA).
In the medical market, the average price for an ounce was about $251.'
https://mjbizdaily.com/fast-growing-michigan-recreational-market-faces-tight-supply-few-municipal-opt-ins/
'Farm cash receipts in British Columbia hit a record high in 2019, boosted by an increase of nearly 300 million Canadian dollars ($221 million) in cannabis sales.
The annual growth in cannabis cash receipts in British Columbia far outpaced growth in other agricultural sectors such as dairy (CA$47 million), beef (CA$25 million) and field vegetables (CA$17.5 million), the provincial government reported Tuesday.'
https://mjbizdaily.com/cannabis-gives-british-columbia-farm-sales-ca300-million-boost-in-2019/
'The Illinois Department of Revenue took in about $35 million in revenue from excise taxes as well as $18 million in sales taxes that are being shared with local jurisdictions. The administration estimates that about $26 million will go to the state’s general fund.
“I’m proud to work with Governor Pritzker in creating equity in the cannabis industry in a way that no other state has done,” Toi Hutchinson, the state’s cannabis czar, said. “By expunging hundreds of thousands of cannabis-related records, reinvesting the money spent on adult-use cannabis in Illinois into communities that are suffering, and making equity a central focus of the cannabis licensure process, the administration is ensuring that no community is left out or left behind.”'
https://www.marijuanamoment.net/illinois-collects-52-million-in-marijuana-tax-revenue-in-first-six-months-of-legal-sales/
'With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined.
Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer.
The data – published in the 2020 edition of the Marijuana Business Factbook – underscores the fact that the U.S. cannabis industry is already a major economic force, even though it has yet to reach its full potential.'
https://mjbizdaily.com/chart-retail-cannabis-sales-surpass-nba-revenue-approach-prescription-pain-meds/
'Well...'
'On a waiter's bill pad,' said Slartibartfast, 'reality and unreality collide on such a fundamental level that each becomes the other and anything is possible, within certain parameters.'
'What parameters?'
'It's impossible to day,' said Slartibartfast. 'That's one of them. Strange but true. At least, I think it's strange,' he added, 'and I am assured that it's true.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'The supply shortage is also reflected in prices: The average retail price for an ounce of flower in the adult-use market was nearly $410 in May, according to the latest monthly report from Michigan’s Marijuana Regulatory Agency (MRA).
In the medical market, the average price for an ounce was about $251.'
https://mjbizdaily.com/fast-growing-michigan-recreational-market-faces-tight-supply-few-municipal-opt-ins/
'Farm cash receipts in British Columbia hit a record high in 2019, boosted by an increase of nearly 300 million Canadian dollars ($221 million) in cannabis sales.
The annual growth in cannabis cash receipts in British Columbia far outpaced growth in other agricultural sectors such as dairy (CA$47 million), beef (CA$25 million) and field vegetables (CA$17.5 million), the provincial government reported Tuesday.'
https://mjbizdaily.com/cannabis-gives-british-columbia-farm-sales-ca300-million-boost-in-2019/
'The Illinois Department of Revenue took in about $35 million in revenue from excise taxes as well as $18 million in sales taxes that are being shared with local jurisdictions. The administration estimates that about $26 million will go to the state’s general fund.
“I’m proud to work with Governor Pritzker in creating equity in the cannabis industry in a way that no other state has done,” Toi Hutchinson, the state’s cannabis czar, said. “By expunging hundreds of thousands of cannabis-related records, reinvesting the money spent on adult-use cannabis in Illinois into communities that are suffering, and making equity a central focus of the cannabis licensure process, the administration is ensuring that no community is left out or left behind.”'
https://www.marijuanamoment.net/illinois-collects-52-million-in-marijuana-tax-revenue-in-first-six-months-of-legal-sales/
'With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined.
Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer.
The data – published in the 2020 edition of the Marijuana Business Factbook – underscores the fact that the U.S. cannabis industry is already a major economic force, even though it has yet to reach its full potential.'
https://mjbizdaily.com/chart-retail-cannabis-sales-surpass-nba-revenue-approach-prescription-pain-meds/
'The third and most mysterious piece of non-absoluteness of all lies in the relationship between the number of items on the bill, the cost of each item, the number of people at the table, and what they are each prepared to pay for. (The number of people who have actually brought any money is only a sub-phenomenon in this field).
The baffling discrepancies which used to occur at this point remained uninvestigated for centuries simply because no one took them seriously. They were at the time put down to such things as politeness, rudeness, meanness, flashness, tiredness, emotionality, or the lateness of the hour, and completely forgotten about on the following morning. They were never tested under laboratory conditions, of course, because they never occurred in laboratories - not in reputable laboratories at least.
And so it was only with the advent of pocket computers that the startling truth became finally apparent, and it was this:
Numbers written on restaurant bills within the confines of restaurants do not follow the same mathematical laws as numbers written on any other pieces of paper in any other parts of the Universe.
This single fact took the scientific world by storm. It completely revolutionized it. So many mathematical conferences got held in such good restaurants that many of the finest minds of a generation died of obesity and heart failure and the science of maths was put back by years.'
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
The baffling discrepancies which used to occur at this point remained uninvestigated for centuries simply because no one took them seriously. They were at the time put down to such things as politeness, rudeness, meanness, flashness, tiredness, emotionality, or the lateness of the hour, and completely forgotten about on the following morning. They were never tested under laboratory conditions, of course, because they never occurred in laboratories - not in reputable laboratories at least.
And so it was only with the advent of pocket computers that the startling truth became finally apparent, and it was this:
Numbers written on restaurant bills within the confines of restaurants do not follow the same mathematical laws as numbers written on any other pieces of paper in any other parts of the Universe.
This single fact took the scientific world by storm. It completely revolutionized it. So many mathematical conferences got held in such good restaurants that many of the finest minds of a generation died of obesity and heart failure and the science of maths was put back by years.'
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'Cannabis regulators in Canada’s Northwest Territories (NWT) reduced prices of legal marijuana products by 10% in an effort to eliminate illicit marijuana sales.
The price cuts, which took effect July 2, apply to all cannabis products sold by the Northwest Territories Liquor and Cannabis Commission (NTLCC), the NWT government said.
“With close to two years of legal sales, NTLCC has a better understanding of the operating costs associated with the distribution and sale of cannabis and is confident that it can reduce the price of these products while continuing to maintain a safe and secure retail regime,” the agency noted.'
https://mjbizdaily.com/canadas-northwest-territories-cuts-cannabis-prices-to-fight-illegal-market/
'In Colorado, marijuana shops sold more than $192 million in May, according to Denver alt-weekly Westword. That’s up from $148 million the month prior.
In Illinois, the state’s cannabis stores sold $47.6 million worth of marijuana in June, another record for the nascent recreational cannabis market, according to the Daily Herald of Arlington Heights. That was up from a high of $44 million in May.
In Oregon, marijuana sales totals hit $103 million in May, topping the $100 million mark for the first time, the Portland Business Journal reported.
Then the state set a record in June, reaching just over $100 million'
https://mjbizdaily.com/multiple-states-continue-to-post-record-breaking-cannabis-sales-numbers/
'The drug use survey in Nigeria reveals tramadol to be a more accessible opioid than heroin, although it is still relatively costly if used frequently. While use of tramadol appears to cost about one third the price of heroin ($3.60 versus $10 per day of use in the past 30 days), in a country where the minimum wage of a full-time worker is around $57 per month, regular tramadol use still poses a considerable financial burden on users and their families. There is no information on the prevalence of drug use in other West African countries, but treatment data reveal tramadol to be the main drug of concern for people with drug use disorders. Tramadol ranks highly among the substances for which people were treated in West Africa in the period 2014–2017. This was particularly the case in Benin, Mali, the Niger, Nigeria, Sierra Leone and Togo.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'There is a great incentive for trafficking organizations to expand the fentanyl market: the large associated revenues. Compared with heroin, the production costs of single-dose fentanyls are substantially lower. For instance, it may cost between $1,400 and $3,500 to synthesize 1 kg of fentanyl, which could bring a return of between $1 million and $1.5 million from street sales. For comparison, 1 kg of heroin purchased from Colombia may cost $5,000 to $7,000,99 around $53,000 at the wholesale level in the United States and around $400,000 at the retail level in the United States. With fentanyls, the logistics for supply are also more flexible because fentanyls can be manufactured anywhere and are not subject to the climatic conditions or the vulnerable conditions required for the largescale cultivation of opium poppy.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'Increases in drug use have at times also been supply driven, as users react to growing supply and the attendant falling prices by increasing their consumption of those drugs. This was the case with cocaine in recent years, among other drugs. Some of the recent changes in drug markets, such as the opioid crisis in North America and the rapid emergence of a synthetic drug market in the Russian Federation and Central Asia, can also be defined as supply driven phenomena. The expansion of the synthetic drugs market in the Russian Federation seems to be mainly linked to the Hydra darknet platform. While there may now be an established user-based demand for synthetic drugs, the initial trigger was new suppliers. The rise of fentanyl in North America was not defined by a new demand either but was the result of opportunities seized by drug suppliers to reduce costs and thus increase profit margins.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
How strange that unnatural indoor growth and greenhouse growth command much higher prices than sungrown cannabis. The cost of artificial lighting and heating which is already a toll on the environment is also being transferred to customers. Natural sun grown cannabis is the kind of growth that should command a premium price you would think..that to me is the more authentic cannabis plant than one grown indoors in fast forward mode..
'Over the past several weeks, Marijuana Business Daily took a deep dive into average wholesale prices in state-legal adult-use marijuana markets.'
https://mjbizdaily.com/slideshow-wholesale-marijuana-prices-in-adult-use-markets/
'The price of legal cannabis products has remained relatively steady (~$10/gram) but prices of illegal cannabis products have dropped substantially (to ~$6/gram), creating an increasing price advantage for the illicit market. These price discrepancies, and likely other retail dynamics, may explain why about 50% of users reported utilizing legal sources, yet only three-in-ten exclusively use legal sources for cannabis purchases. There were initial concerns about shortages of legal cannabis product immediately after legalization. The federal government has now licensed >260 commercial cannabis producers, resulting in rapidly growing cannabis inventories, or an ‘over-stock’ situation, and an anticipated need for ‘consolidation’ of the booming industry. Alcohol sales data have shown a recently accelerated decline in beer sales after cannabis legalization, which may point to a possible substitution effect.'
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7097716/
Taxing a less harmful substance so that it ends up becoming more expensive than a more harmful substance is a flaw in the taxation structure leading to great harm to society. For example..taxing beer and cigarettes so that they are more expensive than some extremely harmful prescription medication will lead to the abuse of the said prescription medicine. Of course, this will greatly benefit the pharmaceutical company but for society at large it will be a most harmful move. The same flawed approach of increased taxation and restrictions in the past led to ganja becoming more and more expensive until it became out of reach for the poor who were its main consumers. They were then driven to take up alcohol, opium and even more dangerous substances like dhatura, which I would compare in terms of toxicity, to the toxicity of many of today's freely available and inexpensive pharmaceutical medications..
Apr 30, 2020, 4:38 PM
Grow your own..
'The report cites data available from Cannazon to show:
- The most common weight category of cannabis product sold was 10 grams.
- The mean price was 125 euros.
- The most common weight sold in the United Kingdom and Germany was 28 grams (1 ounce) and 10 grams, respectively. Corresponding mean prices were 196 euros and 136 euros, respectively.
The United Kingdom and Germany accounted for “just under 80% of drug sales with registered reviews” analyzed by the researchers.
Commercial production of recreational cannabis continues to be illegal across Europe, though regulated medical channels are taking shape.'
https://mjbizdaily.com/many-europeans-stockpiled-illicit-cannabis-as-covid-19-set/
'Here's the crux: legalizing marijuana no longer exposes pot companies to 280E and its high effective tax rate, but it also doesn't generate nearly as much taxable income for the federal government, even if a federal tax is added to legal weed sales. Keep in mind that adding yet another tax to legal marijuana would mean that some consumers will shift their buying habits away from legal channels and toward the black market due to cost.
In other words, the status quo of marijuana being illegal at the federal level with more and more states legalizing has become highly profitable for the federal government. That's a big reason there's a reluctance to legalize.'
https://www.fool.com/investing/2020/06/29/the-surprising-reason-the-us-may-be-reluctant-to-l.aspx
The price cuts, which took effect July 2, apply to all cannabis products sold by the Northwest Territories Liquor and Cannabis Commission (NTLCC), the NWT government said.
“With close to two years of legal sales, NTLCC has a better understanding of the operating costs associated with the distribution and sale of cannabis and is confident that it can reduce the price of these products while continuing to maintain a safe and secure retail regime,” the agency noted.'
https://mjbizdaily.com/canadas-northwest-territories-cuts-cannabis-prices-to-fight-illegal-market/
'In Colorado, marijuana shops sold more than $192 million in May, according to Denver alt-weekly Westword. That’s up from $148 million the month prior.
In Illinois, the state’s cannabis stores sold $47.6 million worth of marijuana in June, another record for the nascent recreational cannabis market, according to the Daily Herald of Arlington Heights. That was up from a high of $44 million in May.
In Oregon, marijuana sales totals hit $103 million in May, topping the $100 million mark for the first time, the Portland Business Journal reported.
Then the state set a record in June, reaching just over $100 million'
https://mjbizdaily.com/multiple-states-continue-to-post-record-breaking-cannabis-sales-numbers/
'The drug use survey in Nigeria reveals tramadol to be a more accessible opioid than heroin, although it is still relatively costly if used frequently. While use of tramadol appears to cost about one third the price of heroin ($3.60 versus $10 per day of use in the past 30 days), in a country where the minimum wage of a full-time worker is around $57 per month, regular tramadol use still poses a considerable financial burden on users and their families. There is no information on the prevalence of drug use in other West African countries, but treatment data reveal tramadol to be the main drug of concern for people with drug use disorders. Tramadol ranks highly among the substances for which people were treated in West Africa in the period 2014–2017. This was particularly the case in Benin, Mali, the Niger, Nigeria, Sierra Leone and Togo.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'There is a great incentive for trafficking organizations to expand the fentanyl market: the large associated revenues. Compared with heroin, the production costs of single-dose fentanyls are substantially lower. For instance, it may cost between $1,400 and $3,500 to synthesize 1 kg of fentanyl, which could bring a return of between $1 million and $1.5 million from street sales. For comparison, 1 kg of heroin purchased from Colombia may cost $5,000 to $7,000,99 around $53,000 at the wholesale level in the United States and around $400,000 at the retail level in the United States. With fentanyls, the logistics for supply are also more flexible because fentanyls can be manufactured anywhere and are not subject to the climatic conditions or the vulnerable conditions required for the largescale cultivation of opium poppy.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
'Increases in drug use have at times also been supply driven, as users react to growing supply and the attendant falling prices by increasing their consumption of those drugs. This was the case with cocaine in recent years, among other drugs. Some of the recent changes in drug markets, such as the opioid crisis in North America and the rapid emergence of a synthetic drug market in the Russian Federation and Central Asia, can also be defined as supply driven phenomena. The expansion of the synthetic drugs market in the Russian Federation seems to be mainly linked to the Hydra darknet platform. While there may now be an established user-based demand for synthetic drugs, the initial trigger was new suppliers. The rise of fentanyl in North America was not defined by a new demand either but was the result of opportunities seized by drug suppliers to reduce costs and thus increase profit margins.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf
How strange that unnatural indoor growth and greenhouse growth command much higher prices than sungrown cannabis. The cost of artificial lighting and heating which is already a toll on the environment is also being transferred to customers. Natural sun grown cannabis is the kind of growth that should command a premium price you would think..that to me is the more authentic cannabis plant than one grown indoors in fast forward mode..
'Over the past several weeks, Marijuana Business Daily took a deep dive into average wholesale prices in state-legal adult-use marijuana markets.'
https://mjbizdaily.com/slideshow-wholesale-marijuana-prices-in-adult-use-markets/
'The price of legal cannabis products has remained relatively steady (~$10/gram) but prices of illegal cannabis products have dropped substantially (to ~$6/gram), creating an increasing price advantage for the illicit market. These price discrepancies, and likely other retail dynamics, may explain why about 50% of users reported utilizing legal sources, yet only three-in-ten exclusively use legal sources for cannabis purchases. There were initial concerns about shortages of legal cannabis product immediately after legalization. The federal government has now licensed >260 commercial cannabis producers, resulting in rapidly growing cannabis inventories, or an ‘over-stock’ situation, and an anticipated need for ‘consolidation’ of the booming industry. Alcohol sales data have shown a recently accelerated decline in beer sales after cannabis legalization, which may point to a possible substitution effect.'
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7097716/
Taxing a less harmful substance so that it ends up becoming more expensive than a more harmful substance is a flaw in the taxation structure leading to great harm to society. For example..taxing beer and cigarettes so that they are more expensive than some extremely harmful prescription medication will lead to the abuse of the said prescription medicine. Of course, this will greatly benefit the pharmaceutical company but for society at large it will be a most harmful move. The same flawed approach of increased taxation and restrictions in the past led to ganja becoming more and more expensive until it became out of reach for the poor who were its main consumers. They were then driven to take up alcohol, opium and even more dangerous substances like dhatura, which I would compare in terms of toxicity, to the toxicity of many of today's freely available and inexpensive pharmaceutical medications..
Apr 30, 2020, 4:38 PM
Grow your own..
'The report cites data available from Cannazon to show:
- The most common weight category of cannabis product sold was 10 grams.
- The mean price was 125 euros.
- The most common weight sold in the United Kingdom and Germany was 28 grams (1 ounce) and 10 grams, respectively. Corresponding mean prices were 196 euros and 136 euros, respectively.
The United Kingdom and Germany accounted for “just under 80% of drug sales with registered reviews” analyzed by the researchers.
Commercial production of recreational cannabis continues to be illegal across Europe, though regulated medical channels are taking shape.'
https://mjbizdaily.com/many-europeans-stockpiled-illicit-cannabis-as-covid-19-set/
'Here's the crux: legalizing marijuana no longer exposes pot companies to 280E and its high effective tax rate, but it also doesn't generate nearly as much taxable income for the federal government, even if a federal tax is added to legal weed sales. Keep in mind that adding yet another tax to legal marijuana would mean that some consumers will shift their buying habits away from legal channels and toward the black market due to cost.
In other words, the status quo of marijuana being illegal at the federal level with more and more states legalizing has become highly profitable for the federal government. That's a big reason there's a reluctance to legalize.'
https://www.fool.com/investing/2020/06/29/the-surprising-reason-the-us-may-be-reluctant-to-l.aspx
Yeah...Money talks, very loudly. You'll be surprised how much cannabis money is talking and what a loud buzz its creating.
'The Canadian cannabis company saw C$29.7 million in revenue for Q1, which was up 260% year over year.'
https://finance.yahoo.com/news/aurora-cannabis-sales-spike-260-legalization-canada-140259383.html
'New England Treatment Access (NETA) in Northampton and Cultivate in Leicester began operations Nov. 20, and combined, they sold $440,000 worth of cannabis that day.
The busiest day was the day after Thanksgiving, when the stores reported nearly $480,000 in gross sales. The stores were closed for the holiday.
“Every register is busy all the time, from when we open to when we close,” Norton Arbelaez, government operations director at NETA, told Marijuana Business Daily.'
https://mjbizdaily.com/sales-booming-massachusetts-recreational-cannabis-outlets/
'Massachusetts's two recreational marijuana retailers sold more than $2.2 million worth of products in their first five days.'
https://mass-cannabis-control.com/wp-content/uploads/2018/11/Web_SalesData_11272018.pdf
'Recreational marijuana shops in Massachusetts have racked up nearly $24 million in sales since the initial ones opened two months ago.
That’s according to the Cannabis Control Commission (CCC), the state’s marijuana regulatory agency, which also this week issued its 100th recreational marijuana business license and moved three shops closer to opening their doors to customers, The Boston Globe reported.
To date, only eight rec MJ retailers have begun full sales, with a ninth upcoming. The CCC anticipates four to eight shops to open each month, the Globe reported.'
https://mjbizdaily.com/massachusetts-hits-24-million-in-adult-use-marijuana-sales-state-issues-100th-license/
'Point-of-sale data from Denver-based cannabis software firm Flowhub found that 2019 Valentine’s Day spending increased among recreational marijuana consumers, with combined retail sales in Alaska, Colorado and Oregon spiking 7% on Feb. 14 relative to the average Thursday.
Flowhub’s data shows that Valentine’s Day weekend spending at adult-use marijuana retail stores in those states hit $3.15 million in 2019, a 3% increase over 2018, with average spending of $52.98.'
https://mjbizdaily.com/chart-valentines-day-marijuana-sales-spike-edibles-popular/
'Retail cannabis sales are expected to top $13 billion throughout the U.S. this year.
While a large portion of investment in this space has gone to vertically integrated operators, investment in retail-only assets is gaining traction.
Investors have pumped more than $200 million over the past 14 months into companies that focus solely on running medical marijuana dispensaries and/or recreational cannabis stores – and much more into vertically integrated companies, according to data tracked by Viridian Capital Advisors.'
https://mjbizdaily.com/marijuana-retail-offers-solid-investment-prospects/
'It’s not surprising to see why cannabis is such a valuable retail product, though: dispensaries typically outsell Whole Foods and other similar retailers.'
https://www.visualcapitalist.com/why-retail-cannabis-could-be-the-next-big-investment-boom/
'The regulations come at a time when Oklahoma enjoys a fast start to a program legalized by voters only last June. Sales hit $7.2 million in February, the program’s second full month after launch.
As of March 11, state regulators have approved licenses for 1,109 dispensaries, 1,972 growers and 553 processors. In addition, 63,647 patients have qualified to receive MMJ products.'
https://mjbizdaily.com/oklahoma-governor-signs-medical-cannabis-rules-into-law/
'To avoid costly legal bills and enormous tax penalties that will trickle down to individual owners based on their entity’s structure, cannabis businesses must adhere to Section 280E when preparing their tax returns. Properly identifying expenses related to cost of goods sold and disallowing ordinary and necessary business expenses will reduce additional tax penalties assessed by the IRS.'
https://newfrontierdata.com/marijuana-insights/smoke-alpenglow-botanicals-llc-v-united-states/
'Legalization activists around the country are no longer being awarded tax exempt status, causing uncertainty for countless nonprofit cannabis lobbying organizations.'
https://merryjane.com/news/the-irs-is-denying-cannabis-advocacy-groups-nonprofit-status
'"Criminals do not pay business taxes, ensure consumers are 21 and over, obtain licenses or follow product safety regulations," said Assemblyman Tom Lackey (R-Palmdale), one of five legislators pushing the bill. "We need to give legal businesses some temporary tax relief so they do not continue to be undercut by the black market." '
http://www.latimes.com/politics/la-pol-ca-pot-tax-reduction-california-legislature-20180315-story.html
Weekly CannaBit from New Frontier Data:
- Fueled by increased competition and industry-wide efficiency gains, cannabis flower prices (especially wholesale) are falling markedly.
- Since 2015 the average price of a pound of wholesale flower has dropped by 58%, from $2,007 to $846 per pound in July 2018.
- As extract-based products (e.g., concentrates) gain popularity, demand for trim used for oil has increased, along with pricing.
- Producers not minimizing production costs or maximizing efficiency find it especially difficult to compete against best-in-class producers.
- Evolution of the industry is paced by three key dynamics: downward price pressure, increased competition, and more regulation.
- Keys for success include tracking operational performance and enhancing efficiency with lower costs, robust financial/accounting practices, and agility to meet shifting industry dynamics.
'Dispensary owners prepared for large crowds on what is essentially the program's opening day. They set up space heaters and heated tents for waiting customers and served coffee and hot chocolate; food was prohibited by the state's strict rules for the industry.
Initial prices were more expensive than other highly-regulated medical marijuana states. Dried marijuana flower – the only product available at first – was priced around $50 per 2.83 g. State regulations require plant material to be packaged and sold in 2.83 g amounts – one-tenth of an ounce that growers have nicknamed an "Ohio tenth." '
https://www.cincinnati.com/story/news/2019/01/16/medical-marijuana-sales-begin-ohio/2583013002/
'“The results include oversaturation of a market, with falling retail prices,” explains Beau Whitney, senior economist with New Frontier Data. “At a very high level, falling prices are good for consumers: They make products cheaper and highly competitive, which makes product differentiation for consumers. Lower prices, better branding.'
https://newfrontierdata.com/marijuana-insights/oregon-going-growing-pains/
'As an FDA-approved pharmaceutical, Epidiolex can only be sold in licensed pharmacies, not dispensaries. Conversely, dispensaries are licensed by state agencies, and can only sell products authorized within a state program. Meanwhile, Epidiolex will likely be more expensive than CBD treatments within a state medical program, which typically cost $200 to $500 a month. But as an FDA-approved drug, Epidiolex can be covered by insurance, while state-authorized medical cannabis is not. '
https://newfrontierdata.com/marijuana-insights/dea-rescheduling-epidiolex-not-yet-cannabis-cbd/
Getting the cost of marijuana down to affordable rates for every consumer is what is needed because it is always the poorest who suffer due to non-affordable and inaccessible medicine . If the cost of the plant is high, the consumer then starts looking at funding options like medical insurance. If the medical insurance companies get into the picture, they will work with doctors and medical institutions to raise the price of marijuana sky-high for their own benefit and everybody else will struggle to access the plant. Make the plant an essential commodity for all..ideally distribute it free if possible...
'Canada law allows patients to buy medical cannabis with money from health-care spending accounts, which are financed by employers, but insurance companies make their own decisions on coverage.'
https://www.insurancejournal.com/news/international/2018/07/13/495106.htm
'Flower with 14% THC sells for only about $10 a gram, he said, but a strain with 20% THC sells for $16-$18 a gram.'
https://mjbizdaily.com/increased-desire-for-high-thc-products-a-hazard-for-some-alaska-cannabis-cultivators/
'It’s the earliest point in any of the four years Colorado has had legal recreational marijuana that combined medical and rec sales have cracked the billion-dollar mark.
Total combined recreational and medical marijuana sales through August hit $1,022,245,511, according to the MED, setting the state on a trajectory to break last year’s record of more than $1.5 billion in sales.'
https://www.denverpost.com/2018/10/18/colorado-cracks-billion-marijuana-sales-record/
'According to figures provided by Cannabis Benchmarks, a Connecticut-based provider of wholesale marijuana pricing data, wholesale cannabis prices in Oregon and Washington state are down more than 50% relative to the same week in October 2017, with double-digit declines also observed in California, Colorado and Nevada.'
https://mjbizdaily.com/chart-declines-in-wholesale-prices-hammer-major-recreational-cannabis-markets/
'Through August 2018 – the most recent data available from the Colorado Department of Revenue – recreational marijuana sales topped $800 million and the state is on pace to surpass $1.2 billion by the end of the year.'
https://mjbizdaily.com/colorado-another-record-setting-year-of-adult-use-cannabis-sales/
'It will be recommended to the the full committee next month that Vermont adopt a 26 or 27 percent tax rate on cannabis sales — Massachusetts has a tax rate up to 20 percent and Maine has a 10 percent state retail sales tax, according to the drafted document.'
https://vtdigger.org/2018/11/14/advisory-panel-recommend-26-tax-cannabis-retail-sales/
Cannabis is volume business..the more prices drop the more accessible it becomes to the wider population
'"Since Oregon levies its recreational marijuana tax based on the price of the product, the fact that actual tax collections have exceeded expectations is all the more impressive given the ongoing drop in prices," the forecast says. "For every ounce sold, or every edible purchased, Oregon is receiving less tax revenue per item due to the price decline."'
https://www.wweek.com/news/2018/11/17/this-weeks-state-revenue-forecast-again-showed-surging-cannabis-tax-receipts-and-continued-strong-growth/
'According to the California Department of Tax and Fee Administration, the state brought in a total of $93.1 million in cannabis taxes in the third quarter of 2018, including $52.4 million in excise taxes, $12 million in cultivation taxes and $28.7 million in sales taxes.
Those numbers do not include city and county marijuana taxes.That is a significant increase from the first two quarters of 2018. Q2 cannabis tax revenues were revised to $80.2 million, the CDTFA reported.'
https://mjbizdaily.com/californias-q3-marijuana-tax-revenues-signal-ongoing-mj-business-turbulence/
'The new state analysis finds the price collapse sparked a big uptick in marijuana purchases and a corresponding increase in associated tax revenue, The Oregonian reported.'
https://mjbizdaily.com/oregon-recreational-cannabis-sales-soar-prices-drop/
'While cannabis taxes are a meaningful source of revenue in states with established retail markets those revenues have not been high enough to fundamentally transform state budgets. In general, cannabis taxes tend to raise roughly the same amount as taxes on alcohol, and substantially less than taxes on tobacco.
The evidence accumulated thus far points toward a few sensible recommendations for states considering legalization and taxation of recreational cannabis. Those include levying weight-based taxes that will be immune to the impending collapse in cannabis prices, indexing those weight-based tax rates to rise alongside inflation, phasing in cannabis taxes over time in order to hasten the decline of the illicit market, and earmarking cannabis tax revenues only sparingly if at all.'
https://itep.org/taxing-cannabis/
'Sales of medical marijuana in Maryland this year are blowing by projections from one of the cannabis industry’s leading market research firms.
New Frontier Data forecast last year — before Maryland’s market kicked off last December — that the state’s 2018 sales would be $46 million.
For the first nine months of 2018, however, sales have been $67 million, according to the latest data from the Maryland Medical Cannabis Commission.'
https://www.baltimoresun.com/business/bs-md-sun-investigates-cannabis-20181121-story.html
'Free charity cannabis comes at a steep cost. Low-income patients who get free “compassionate care” marijuana products for medical conditions are still charged the 25 percent sales and excise tax on it, and growers, manufacturers, and transporters pay steep taxes on donated charity weed too.'
http://www.sfweekly.com/news/free-medical-cannabis-bill-back-in-legislature/
'The hemp market in 2017 amounted to $820 million, according to research company New Frontier Data. The hemp production acreage is expected to triple in 2018, with a market value of $1 billion. By comparison, U.S. acres planted for hops amounted to little over 53 thousand acres in 2017 at a market value of $617 million.'
https://www.bloombergquint.com/business/u-s-hemp-production-acreage-map
'Seven days of legal sales of Massachusetts marijuana brought in $2.6 million, according to data released by state regulators.'
https://www.masslive.com/news/index.ssf/2018/12/massachusetts_marijuana_sales.html
'Officials have estimated that the state stands to reap as much as $750 million in tax revenue per year from cannabis sales. And some lawmakers are already backing the idea of using some of those funds to fix the city’s faltering subways.
“The biggest issue we hear about as elected officials is the state of the subway system,” New York City Council speaker Corey Johnson told The New York Times. “To be able to tie these things together is something that could be highly impactful and potentially transformative.”'
https://www.marijuanamoment.net/lawmakers-might-use-legal-marijuana-taxes-to-fix-new-yorks-subways/
In Massachusetts...
'Revenue officials are looking ahead at the growth of the industry and predicting that the state could generate as $172 million in marijuana tax revenue by 2020.
This money would go back to the community through education programs, infrastructure funding, and public safety initiatives.'
https://www.wwlp.com/news/massachusetts/state-revenue-from-pot-sales-to-go-towards-education-infrastructure-public-safety/1644155876
'Potential tax revenue from recreational marijuana legalization in New York State may be significant: it is likely that excise and sales taxes will generate hundreds of millions of dollars in annual revenue. However, early estimates are speculative at best, based on hypothetical tax structures and wide-ranging assumptions of the consumer market. It will take years to fully realize a robust legal recreational marijuana market and associated tax revenue. If New York does implement such a program, the associated revenue must be cautiously forecast, transparently disbursed, and utilized for general state operating purposes.'
https://cbcny.org/research/dont-get-too-high-potential-marijuana-revenues
'Statistics Canada says sales at cannabis stores in the two weeks after legalization totalled $43 million.
The agency started collecting data for in-store and online sales from cannabis retailers as of Oct. 17, when fresh or dried bud, oil, plants and seeds became legal for recreational use in the country.'
https://www.thestar.com/news/cannabis/2018/12/21/cannabis-store-sales-total-43m-in-first-two-weeks-after-legalization.html
'Massachusetts dispensaries rang up $9.3 million in recreational marijuana sales during the first four weeks of operation, an impressive feat considering only two stores were selling adult-use cannabis during the bulk of this period.'
https://mjbizdaily.com/massachusetts-recreational-marijuana-sales-first-month/8
'Across Colorado, the rollout of recreational marijuana sales five years ago has raised tens of millions of dollars annually to tackle a litany of local concerns — from main street makeovers in cash-strapped small towns to addressing Denver’s housing affordability crunch.'
https://www.denverpost.com/2018/12/28/colorado-marijuana-taxes-local-cities-towns/
'On the third? New tax revenue is welcome given a wide array of needs and heavy tax burden on many New Yorkers. But the mayor is naive if he thinks the city or state can effectively achieve managed-marijuana-marketplace nirvana — guaranteeing that dispensary licenses go to neophyte mom-and-pop enterprises rather than experienced entrepreneurs.
Who knows, even Amazon may want a piece of the action. And why not?'
https://www.nydailynews.com/opinion/ny-edit-bill-pot-20181220-story.html
'According to one analyst, Portland-based Beau Whitney with New Frontier Data, prices fell by 50% after the 2017 harvest, and he expects to see them slide by 35%-50% more after the 2018 crop fully hits the market.'
https://mjbizdaily.com/oregon-cannabis-harvest-oversaturated-lower-prices/
'Maryland’s slow-to-start medical marijuana industry made up for lost time, zooming toward $100 million in first-year sales.
Maryland brought in $95.4 million in dispensary sales between Dec. 1, 2017, and Nov. 30, 2018, averaging 21% monthly growth and peaking in November at $13.8 million.
That total surpassed first-year MMJ sales in Illinois, Massachusetts and New York – combined.'
https://mjbizdaily.com/chart-marylands-first-year-medical-marijuana-sales-approach-100-million/
'Illinois’ medical marijuana program posted steady growth in 2018, pulling in $133 million in dispensary sales while increasing patient enrollment 66% over the course of the year.
Moreover, Illinois dispensaries are poised to post additional sales gains this year thanks to a new state law that could spur residents to opt for MMJ versus opioids for treatment.'
https://mjbizdaily.com/llinois-medical-marijuana-sales-opioid-alternative-program/
'CBD’s cult-like status is skyrocketing sales. In 2017, New Frontier Data estimated that the CBD-product market grew 40 percent to $367 million in sales. By 2022, economists estimate, sales for hemp-based CBD products alone will reach $647 million.'
https://chicago.suntimes.com/cannabis/cbd-products-pain-treatment/
'The first retail stores in Massachusetts — and anywhere on the U.S. East Coast — began operations Nov. 20 in Northampton and Leicester. Several others have opened since.
The commission reported aggregate gross sales of $23.8 million through Jan. 20, including $3.4 million in the most recent week.'
https://apnews.com/7d1c910bfa71452fae4d31a353b07fb3
'“Expect to see flower prices declines in California as well once the rules settle a bit,” Whitney added. “Right now, I could see outdoor in the near term going for less than $250 a pound, trending much farther below that in the longer term.”
According to the California Department of Food and Agriculture, the state’s growers produced up to 15.5 million pounds of cannabis while consuming just 2.5 million pounds (or 16%) of it, leaving a surplus equal to 13x of Colorado’s total production ripe for diversion eastward, where wholesale prices can fetch 3x higher.'
https://newfrontierdata.com/marijuana-insights/parsing-some-differences-in-product-demand-and-oversupply/
'Colorado marijuana sales top $6 billion to date since adult-use marijuana sales began'
https://www.colorado.gov/pacific/revenue/colorado-marijuana-sales-top-6-billion-date-adult-use-marijuana-sales-began-0
'But for comparison, California’s first year of cannabis taxes could pay the average annual salaries of an extra 4,166 teachers—double the number employed in the Sacramento Unified School District.
California’s first year of cannabis taxes could pay the average annual salaries of 3,542 additional police officers—eight times the number of cops in the Sacramento Police Department.'
https://www.leafly.com/news/politics/california-made-300-million-on-legal-marijuana-in-2018-and-its-just-getting-started
If anybody can afford it, it's surely the Swiss...
'A Swiss court has killed some of the buzz for cannabis lovers in the Alpine country.
The sale of cannabis flowers in Switzerland will be taxed at 25 percent, the same levy that currently applies to tobacco, because the drug’s floral buds are smoked in a similar way to cigarettes, the Swiss Federal Administrative Court ruled in a March 11 decision.'
https://www.bloomberg.com/news/articles/2019-03-13/swiss-court-harshes-cannabis-lovers-mellow-with-25-tax-on-buds
'The federal government is proposing new excise duty rates for cannabis edibles and extracts, including oil and topical products, in its budget released on Tuesday. The new rate will be determined by the total tetrahydrocannabinol (THC), the primary psychoactive compound in cannabis, contained in a final product.
“The proposed THC-based rate would alleviate compliance issues that producers have encountered with respect to the tracking of the quantity of cannabis material contained in cannabis oils, and would allow producers and administrators to more easily calculate and verify excise duties for cannabis edibles, extracts and topicals,” the government said in its budget documents.
The proposed rate equates to $0.01 per milligram of total THC and will come into effect on May 1. The current excise tax for dried flower products is $1 per gram and will remain unchanged, according to the Finance Department.'
https://www.bnnbloomberg.ca/ottawa-tweaks-excise-tax-for-edibles-pares-revenue-estimates-from-pot-taxes-1.1231444
'Dispensaries in Colorado collected more money in 2018 than in any previous year, topping $1.54 billion. While this year is still young, the combined $244.3 million in sales logged during the first two months of 2019 is outpacing last year, topping 2018 sales during the same period by around $14 million.
A longer month and sunnier days in March and April (and the 4/20 holiday) should only increase 2019's hot streak.'
https://www.westword.com/marijuana/colorado-marijuana-sales-continue-at-record-pace-in-2019-11308376
https://www.theguardian.com/cities/2018/jan/31/which-city-cheapest-most-expensive-cannabis-marijuana
'While that group, Regulate Marijuana Like Alcohol In Michigan (RMLAM), predicted that the state would collect about $520 million in cannabis sales and excise tax revenue in the five years after implementation, the government estimate is closer to $730 million over the same time span.'
https://www.marijuanamoment.net/michigan-officials-legal-marijuana-will-create-even-more-revenue-than-activists-predicted/
'Colorado's marijuana industry continued to break records in August, according to the state's Department of Revenue, with legal marijuana sales bringing in over $141.3 million that month.The previous record had been set just the month before.'
https://www.westword.com/marijuana/colorado-monthly-marijuana-earnings-keep-reaching-new-heights-10891541
'Legalizing marijuana could secure New Hampshire as much as $58 million a year, according to a Department of Revenue Administration analysis this week – the highest estimate yet.'
https://www.concordmonitor.com/Revenue-estimate-increase-New-Hampshire-marijuana-legalization-20407709
'California brought in around $74.2 million in marijuana industry tax revenue during the second quarter, up 22% from the first three months of the year, in what the government said was a "growing" trend toward complying with regulations. But the figures continued to show a much slower-than-expected start for what is expected to be the world's largest pot market.'
https://www.investors.com/news/marijuana-stocks-california-cannabis-tax-revenue-q2
'Numbers from June are still outstanding but are expected to push taxable sales past $500 million, netting total tax revenue in the neighborhood of $70 million — with about $25 million devoted to schools.'
https://abcnews.go.com/International/wireStory/1st-year-nevada-marijuana-sales-exceeds-expectations-57010914
'Now, with Delaware seemingly poised to legalize recreational marijuana, Pennsylvania Auditor General Eugene Depasquale is warning that the Commonwealth and Philadelphia, especially, could lose millions of dollars if recreational marijuana is not also legalized here'
https://www.ydr.com/story/news/2018/07/26/legal-weed-would-money-making-tourist-attraction/841521002/
'“April marks a significant milestone for the state, as tax revenues from marijuana hit—and exceeded—the amount that was projected for the entire fiscal year, with two months of collections still to go,” said Bill Anderson, the Executive Director of Nevada’s Department of Taxation, in a prepared statement.'
https://fox13now.com/2018/06/28/nevada-reports--whopping-110-of-projected-sales-from-marijuana/
'With three months still in the fiscal year, Nevada has already brought in about 97 percent of the combined marijuana tax revenue that was projected for the entire fiscal year. The state’s projection for total amount of marijuana tax revenue this year was $50.32 million.'
https://www.cannabisbusinessexecutive.com/2018/05/nevada-exceeds-pot-tax-revenue-expectations-rec-sales-topped-304-million/
Great news for the consumer..
Wholesale sun-grown weed fell from $1,500 a pound last summer to as low as $700 by mid-October. On store shelves, that means the price of sun-grown flower has been sliced in half to those four-buck grams.
https://www.theguardian.com/society/2018/may/09/how-oregon-grew-too-much-marijuana-to-sell
Our latest sales projections for 2018 include $1.12 billion in medical cannabis and $805 million in adult-use sales, for total cannabis sales of $1.92 billion. By 2025, our expectations call for medical sales worth $760 million and adult-use sales of $3.96 billion, for total California sales of $4.72 billion. The Golden State will be worth 21% of total U.S. cannabis sales at an estimated $23 billion overall.
https://newfrontierdata.com/marijuana-insights/adjusting-assumptions-californias-sunny-revenue-forecast/
Much of the country's outmoded views on cannabis persist, but in the arena of legislation, these arguments are falling on deaf ears. Legalization of cannabis has opened a door to a massive, new source of revenue for state governments.
https://www.forbes.com/sites/andrewdepietro/2018/05/04/how-much-money-states-make-cannabis-sales/#7c52b48f1811
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