Starting Jan. 1, Colorado will reap more tax revenue from wholesale deals involving marijuana intended to be sold to consumers after the average prices of those wholesale products rose in the latter part of 2018.
The Colorado Department of Revenue on Thursday released updated average market rates for marijuana being sold or transferred from retail cultivation centers to recreational pot shops or facilities that make retail products like hash oil and edibles. Those sales and transfers are subject to a .
The rates were calculated based on transactions tracked by the state’s marijuana enforcement division between Aug. 1 and Oct. 31. During that time frame, the average price of a pound of marijuana bud rose to $781, up from $759 during the previous reporting period. An average pound of trim went up to $396 from $325. The cost of whole, wet plants hit $151, up from $100 and a seed sold for $5 each on average, up from $4.
The prices of buds and trim set aside for use in creating marijuana extracts both fell during the reporting period, hitting $200 per pound each. The average cost of an immature plant decreased to $4 each.
“The quarterly Average Market Rate update is just one of many examples of the Department of Revenue’s use of data in helping regulate the burgeoning cannabis industry,” Mike Hartman, the revenue department’s executive director, said in a statement. The department sees the rates as “one of the important tools that the state uses to closely monitor supply, demand and pricing dynamics,” he added.
