The Alaska Department of Revenue
(ADOR) recently posted information on tax collections from the wholesale side
of the state’s adult-use cannabis industry for July 2019. According
to the state’s data, total tax revenues expanded in July on increased volume of
flower traded by the state’s growers. However, year-over-year increases in
trading volumes in July decreased relative to those for the month prior.
Alaska’s monthly average Spot price was down in July compared to June.
The tax collection figures from
ADOR state that licensed growers paid a total of $1,835,068 in tax to the state
in July. Receipts from the levy on cultivators increased by 3.6%
month-over-month, relative to $1,771,949 collected in June.
July saw 1,544 pounds of flower
change hands in the state’s market, up by 2.1%, compared to the 1,512 pounds
traded in June. Flower sold or transferred by Alaskan growers is taxed at a
flat rate of $50 per ounce ($800 per pound).
The volume of trim traded in July
was 1,359 pounds, representing a decrease of 4.8% from June’s total of 1,427
pounds of trim sold by cultivators. Wholesale sales volume of trim in January
2019 still represents the highest monthly total of such plant material moved in
the state’s market at 1,532 pounds. Trim is taxed at a rate of $15 per ounce
($240 per pound) in Alaska’s market.
682 pounds of
“immature/seedy/failed” plant material was transferred or traded by growers in
July, up by 24% from 550 pounds in June. “Immature/Seedy/Failed” plant material
is taxed at a rate of $25 per ounce ($400 per pound) and was only introduced as
a taxable product category at the outset of this year.
The volume of flower and trim that
changed hands in July 2019 saw significant increases compared to the same month
the year prior. In July 2018, 1,388 pounds of flower and 1,086 pounds of trim
were traded or transferred in Alaska’s licensed system.
July 2019’s trading volumes for those product
types represent year-over-year rises of 11.2% and 25.1%, respectively. The
magnitude of year-over-year increases in wholesale sales volume in July 2019
decreased notably from the month prior, especially for flower.