Marijuana

Colorado Sees Drop in Four Average Market Rates for Retail Marijuana

Colorado voters rejected a marijuana tax hike last year, but the City of Denver could see a similar proposal in 2022.
Colorado voters rejected a marijuana tax hike last year, but the City of Denver could see a similar proposal in 2022. iStock
Think weed is getting cheaper in Colorado? You're not wrong.

The average market rate (AMR) for retail marijuana has decreased in four categories while increasing in two, according to the state Department of Revenue.

The prices have decreased for bud, trim, trim allocated for extraction, and wet whole plant. Retail bud is down $90 per pound, trim is down $48 per pound, trim allocated for extraction is down $60 per pound, and wet whole plant is down $7 per pound. Seed stays the same at $4 per seed, where it has been since January.

Bud allocated for extraction is up to $275 per pound, however, an increase of $47 from the April 1 market rate. Immature plant is at $12 per plant, up $2 from the April 1 rate.

The AMR is the median price of a certain category of unprocessed retail marijuana that is sold from cultivation facilities to retail stores and manufacturing facilities. The average market rate is calculated in order to impose the excise tax.

Retail marijuana is subject to both a retail and excise tax. The excise tax is placed on the actual transfer of marijuana between business licenses (i.e., the cultivation facility to the store where it is being sold), and the sales tax is imposed on the actual sale of the marijuana to a customer.

State retail marijuana comes with a 15 percent excise tax. Each marijuana cultivation facility must file excise tax returns.

The state's current AMR was calculated based on the transactions from retail marijuana cultivators from March 1 to May 31.

These rates are effective from July 1 until September 30, when they will again be calculated.
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