Alaska’s Monthly Cannabis Tax Revenue Reached $1 Million to Start 2018
There are a lot of firsts for the cannabis industry in recent years – and each state that legalizes has it’s own chance to have many of these firsts. First licenses approved, first dispensaries opened, first legal sales – and first million dollars in tax revenue. States that have legalized cannabis are finding that the tax revenue being made from the newly legal industry continuously outpaces the expected results. For the state of Alaska, 2018 kicked off great when January closed off as their first month making $1 million in marijuana related taxes.
Overall, since legal sales of cannabis started in Alaska back in October 2016 the state has brought in over $7 million overall in marijuana tax revenue. While some states like Colorado have brought in over half a billion dollars already, for a state that is more remote, harder to travel and less frequently visited by tourists, Alaska is doing rather well with their legal cannabis sales.
The taxes are paid in the form of a $50 per ounce of cannabis bud, and another $15 per ounce for other parts of the plant (including stems, leaves, stalks, etc.). During this record breaking month back in January, the state sold a total of 1061 pounds of marijuana, and 797 pounds of trim, at the wholesale level.
Because of the cash-only nature of the cannabis industry many do not take into consideration that most of those taxes are paid in cash. In Alaska, $4 million has been paid in cash so far – with 74 percent of all the cannabis excise tax money being processed by state employees using a single cash-counting machine that is available in downtown Anchorage.
Things have clearly started off well for Alaska’s cannabis industry this year – which means that other states are likely seeing similar success early-on this year.